Express Terms: Understanding the Foundation of Contracts

Question 1

Which of the following is NOT a factor that influences the interpretation of terms in a contract?

Accepted Answer

The judge's personal opinion

Answer

Surrounding circumstances

Answer

Legal precedent

Answer

Established industry practice

Question 2

Which of the following is a defining characteristic of an express term in contract law?

Accepted Answer

Agreed upon by the parties and included in the contract

Answer

Incorporated into the contract solely by implication of law

Answer

Implied by the court based on the parties' conduct

Answer

Present in the contract by default, regardless of the parties' intent

Question 3

Which of the following is NOT a requirement for the valid formation of an express term in a contract?

Accepted Answer

Written form

Answer

Mutual assent

Answer

Clear and unambiguous language

Answer

Consideration

Question 4

Which principle of contract interpretation aims to give effect to the parties' presumed intentions?

Accepted Answer

Golden rule

Answer

Literal rule

Answer

Mischief rule

Answer

Plain meaning rule

Question 5

In the event of a conflict between an express term and an implied term, which one generally prevails?

Accepted Answer

The express term

Answer

The implied term

Answer

Neither term prevails

Answer

The term that is more specific

Question 6

Which of the following is NOT a type of express term?

Accepted Answer

Implied covenant

Answer

Warranty

Answer

Condition

Answer

Representation

Question 7

How does a condition differ from a warranty in contract law?

Accepted Answer

A condition is a more fundamental term than a warranty.

Answer

A warranty is a more fundamental term than a condition.

Answer

They are essentially the same thing.

Answer

Neither of the above

Question 8

An essential element of an express term is **not**:

Accepted Answer

Being in writing.

Answer

Agreement between the parties.

Answer

Certainty of meaning.

Answer

Being communicated to both parties.

Question 9

When may a court imply a term into a contract?

Accepted Answer

In all of the above circumstances.

Answer

When necessary to give effect to the parties' intentions.

Answer

When necessary to protect the weaker party.

Answer

When necessary to fill a gap in the contract.

Question 10

A **representation** differs from a warranty as it is:

Accepted Answer

A statement of fact, while a warranty is a promise.

Answer

A promise, while a warranty is a statement of fact.

Answer

Not actionable, while a warranty is.

Answer

Actionable, while a warranty is not.

Question 11

Liability for a negligent misstatement can arise when:

Accepted Answer

Any of the above conditions are met.

Answer

The statement is made during business dealings.

Answer

The statement aims to influence the other party.

Answer

The statement is made without reasonable care.

Question 12

The **doctrine of promissory estoppel**:

Accepted Answer

Allows courts to enforce promises lacking consideration, if reliance was induced by the promisor.

Answer

Prevents courts from enforcing promises lacking consideration, even if reliance occurred.

Answer

Applies only to written promises.

Answer

Is not recognized in contract law.

Question 13

An **exemption clause** differs from an exclusion clause because it:

Accepted Answer

Exempts a party from liability for breach of contract, while an exclusion clause excludes a contract term.

Answer

Excludes a contract term, while an exemption clause exempts a party from liability for breach of contract.

Answer

Has no distinction from an exclusion clause.

Answer

Is always void, while exclusion clauses are not.

Question 14

Courts may strike down an exemption clause if it is found to be:

Accepted Answer

Any of the above.

Answer

Unreasonable.

Answer

Ambiguous.

Answer

Unconscionable.

Question 15

For a breach of an **innominate term**:

Accepted Answer

The innocent party can claim damages and/or terminate the contract.

Answer

The innocent party can only claim damages.

Answer

The innocent party can only terminate the contract.

Answer

No legal remedies are available.

Question 16

A **fundamental breach** differs from a non-fundamental breach as it:

Accepted Answer

Gives the innocent party the right to terminate the contract.

Answer

Does not give the innocent party the right to terminate the contract.

Answer

Is always actionable, unlike non-fundamental breaches.

Answer

Has no distinction from a non-fundamental breach.

Question 17

In contract law, why are express terms crucial for contract formation and interpretation?

Accepted Answer

They serve as the primary source for interpreting the contract's meaning.

Answer

They solely determine the parties' contractual obligations.

Answer

They can be easily altered or excluded from the contract.

Answer

They hold less significance compared to implied terms.

Question 18

Which of the following is NOT an essential element of an express term in contract law?

Accepted Answer

It must be supported by consideration.

Answer

It must be agreed upon by both parties to the contract.

Answer

It must be clearly and explicitly stated in the contract.

Answer

It must be incorporated into the contract before the contract is formed.

Question 19

What is the parol evidence rule?

Accepted Answer

It prevents parties from introducing extrinsic evidence to contradict or vary the terms of a written contract.

Answer

It requires parties to provide written evidence of all terms agreed upon in a contract.

Answer

It prohibits parties from making any oral agreements prior to entering into a written contract.

Answer

It allows parties to modify or supplement the terms of a written contract through subsequent oral agreements.

Question 20

What is the doctrine of rectification?

Accepted Answer

It allows a court to correct a mistake in a written contract.

Answer

It prevents a party from enforcing a contract that contains a mistake.

Answer

It requires parties to renegotiate a contract if a mistake is discovered.

Answer

It has no relevance to the law of contract.

Question 21

Which of the following is NOT a requirement for an express term to be incorporated into a contract?

Accepted Answer

The term must be in writing unless incorporated by conduct.

Answer

The parties must have agreed to the term.

Answer

The term must be clear and unambiguous.

Answer

The term must be capable of being performed.

Question 22

What is the parol evidence rule?

Accepted Answer

Both of the above.

Answer

Evidence of prior negotiations cannot be used to contradict a written contract.

Answer

Evidence of subsequent agreements cannot be used to contradict a written contract.

Answer

Neither of the above.

Question 23

True or False: An implied term is a term that is automatically incorporated into a contract even if the parties have not expressly agreed to it.

Accepted Answer

True

Answer

False

Question 24

Revised: True or False: An exemption clause is a type of express term that limits or excludes the liability of one party in a contract.

Accepted Answer

True

Answer

False

Question 25

Which of the following is a **primary** requirement for an exemption clause to be effective?

Accepted Answer

It must be clear and unambiguous.

Answer

It must be negotiated between the parties.

Answer

It must be in writing.

Answer

It must be prominently displayed.

Question 26

Revised: True or False: The doctrine of fundamental breach can be invoked to nullify an exemption clause under specific circumstances.

Accepted Answer

True

Answer

False

Question 27

Which of the following statements about express terms in a contract is accurate?

Accepted Answer

They are explicitly stated and intended to be part of the legally binding agreement.

Answer

They are binding regardless of whether they were intended to be part of the contract.

Answer

They are implied by law and not explicitly stated.

Question 28

What is the essence of the parol evidence rule?

Accepted Answer

It prohibits the introduction of external evidence to alter or contradict the terms of a written contract.

Answer

It requires parties to disclose all material facts before forming a contract.

Question 29

Which of the following is an example of an implied term?

Accepted Answer

A term that the parties would have likely included in the contract if they had considered it.

Answer

A term that is created by statute.

Answer

A term that is explicitly stated in the contract.

Question 30

What is the fundamental purpose of the doctrine of frustration?

Accepted Answer

To excuse performance of a contract when unforeseen circumstances make it impossible or impractical to fulfill.

Answer

To allow parties to terminate a contract for any reason.

Question 31

Which of the following factors is NOT considered by courts when interpreting a contract's express terms?

Accepted Answer

The parties' subjective, unexpressed intentions

Answer

The ordinary meaning of the language used

Answer

The commercial context

Answer

The surrounding circumstances

Question 32

Which of the following statements about express terms in a contract is accurate?

Accepted Answer

They are terms that are explicitly stated in the written or oral agreement between the parties.

Answer

They are terms implied by the law, regardless of the parties' intentions.

Answer

They are terms that are agreed upon but not documented in the contract.

Question 33

Which of the following is NOT a requirement for the formation of an express term in a contract?

Accepted Answer

Consideration (exchange of value) between the parties

Answer

Mutual agreement and understanding of the term's meaning

Answer

Clarity and specificity in the language used to express the term

Question 34

What is the primary purpose of interpreting express terms in a contract?

Accepted Answer

To ascertain and give effect to the parties' shared intentions and common understanding

Answer

To make the contract more legally binding and enforceable

Answer

To modify or rewrite the terms of the contract

Answer

To avoid or minimize disputes between the parties

Question 35

Which of the following is an example of an express term in a contract?

Accepted Answer

A clause in a contract that specifies the purchase price of a laptop, including taxes and delivery charges.

Answer

A term implied by law, such as the duty of good faith and fair dealing

Answer

A promise made during contract negotiations that is not included in the final written agreement

Question 36

What is the key distinction between a condition and a warranty in contract law?

Accepted Answer

A condition is a fundamental term that goes to the root of the contract, while a warranty is a less important term that does not affect the core purpose of the contract.

Answer

A condition is an express term, while a warranty is an implied term.

Answer

A condition must be in writing, while a warranty can be oral.

Question 37

What is the main purpose and effect of the parol evidence rule in contract law?

Accepted Answer

To prevent the introduction of extrinsic evidence (e.g., prior or contemporaneous agreements) that contradicts, modifies, or adds to the terms of a written contract, thereby ensuring the reliability and integrity of the written document as the sole repository of the parties' agreement.

Answer

To make it easier for parties to prove the terms of a contract by allowing them to introduce any relevant evidence.

Question 38

Which of the following is NOT a method of creating express terms in a contract?

Accepted Answer

Implication

Answer

Offer and acceptance

Answer

Incorporation by reference

Answer

Collateral contract

Question 39

What is the parol evidence rule?

Accepted Answer

It prevents the introduction of extrinsic evidence to contradict or vary the terms of a written contract.

Answer

It allows parties to a contract to introduce extrinsic evidence to supplement the terms of a written contract.

Question 40

What is the difference between a condition and a warranty?

Accepted Answer

A condition is a term that goes to the root of the contract, while a warranty is a term that is collateral to the main purpose of the contract.

Answer

A condition is a term that is more important than a warranty.

Question 41

What is the effect of a breach of warranty?

Accepted Answer

It gives the innocent party the right to damages.

Answer

It gives the innocent party the right to terminate the contract.

Answer

It does not give the innocent party any rights.

Answer

It only gives the innocent party the right to damages if the breach is material.