Terms of Contracts: A Comprehensive Guide for Law Students

Question 1

Which of the following is NOT a legal implication of an express term in a contract?

Accepted Answer

Express terms cannot be varied or modified by a subsequent agreement between the parties.

Answer

Express terms are binding on the parties to the contract.

Answer

Express terms take precedence over implied terms.

Answer

Express terms can be incorporated into a contract by reference.

Question 2

Which definition best describes a condition in a contract?

Accepted Answer

A fundamental term, breach of which gives the innocent party the right to terminate the contract

Answer

A less significant term, breach of which does not grant the innocent party the right to terminate the contract

Answer

A term guaranteeing the quality or performance of goods or services

Question 3

What is the primary purpose of an exclusion clause in a contract?

Accepted Answer

To limit or exclude liability of a party for breach of contract

Answer

To create a new obligation for a party

Answer

To terminate the contract

Question 4

Which of the following is a crucial requirement for a valid exclusion clause?

Accepted Answer

Clarity and unambiguous language

Answer

Written format

Answer

Signatures from both parties

Question 5

What are the legal consequences of breaching a warranty in a contract?

Accepted Answer

Entitlement of the innocent party to damages

Answer

Right of the innocent party to terminate the contract

Answer

Creation of a new obligation for the innocent party

Answer

No legal consequences

Question 6

Which of the following would qualify as an implied term in a contract for the sale of goods?

Accepted Answer

An expectation of satisfactory quality of goods

Answer

An obligation for the buyer to pay for the goods in advance

Answer

A requirement for the seller to provide a written warranty for the goods

Answer

A stipulation for the goods to be delivered within a specific timeframe

Question 7

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

Accepted Answer

A condition carries more weight than a warranty, and its breach empowers the innocent party to terminate the contract

Answer

A warranty holds more significance than a condition, and its breach empowers the innocent party to terminate the contract

Question 8

Which of the following factors is considered by courts when interpreting a contract?

Accepted Answer

The context surrounding the contract's creation

Answer

The personal beliefs of the parties involved

Answer

The desired outcome of the parties involved

Question 9

Which of the following is essential for a legally binding contract?

Accepted Answer

Intention to create legal relations

Answer

Knowledge of the law

Answer

Signature of both parties

Answer

Notarized document

Question 10

A term added to a contract by operation of law is classified as a(n):

Accepted Answer

Implied term

Answer

Condition

Answer

Express term

Question 11

Which type of contractual term represents a fundamental obligation, breach of which entitles the other party to rescind the contract?

Accepted Answer

Condition

Answer

Warranty

Answer

Representation

Question 12

An exclusion clause is a contractual term that:

Accepted Answer

Limits or excludes the liability of a party

Answer

Implies a certain warranty

Answer

Creates a new obligation

Question 13

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

Accepted Answer

Fitness for a particular purpose

Answer

Expert advice

Answer

Good faith

Question 14

A breach of a condition entitles the innocent party to:

Accepted Answer

Rescind the contract or claim damages

Answer

Only seek an injunction

Answer

Enforce the contract despite the breach

Question 15

The doctrine of privity of contract means that:

Accepted Answer

Only parties to a contract can enforce its terms

Answer

Contracts must be in writing to be valid

Answer

Contracts are binding on everyone, even non-parties

Question 16

Which of the following is a valid method for modifying the terms of an existing contract?

Accepted Answer

Mutual agreement between the parties

Answer

Implied consent of one party

Answer

Unilateral decision of one party

Question 17

The doctrine of frustration of contract is applied when:

Accepted Answer

An unforeseen event makes performance impossible or radically different

Answer

One party materially breaches the contract

Answer

The contract is void from the outset

Question 18

A condition is a term that:

Accepted Answer

Goes to the root of the contract

Answer

Is a minor term

Answer

Is implied by law

Answer

Can be excluded by an exclusion clause

Question 19

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

Accepted Answer

An express warranty

Answer

A term of satisfactory quality

Answer

A term of fitness for purpose

Answer

A term of reasonable care and skill

Question 20

An exclusion clause is only valid if it is:

Accepted Answer

Clearly and conspicuously drafted

Answer

Only applicable to businesses

Answer

Written in small print

Answer

Hidden in a complex contract

Question 21

Which of the following is a benefit of using an exclusion clause?

Accepted Answer

It limits the liability of the party who drafted it

Answer

It increases the legal protection of the party who accepts it

Answer

It guarantees the performance of the contract

Question 22

A breach of contract occurs when:

Accepted Answer

One party fails to fulfill their obligations

Answer

The contract is void ab initio

Answer

The contract is frustrated

Answer

The contract is terminated early

Question 23

Which of the following is NOT a remedy for breach of contract?

Accepted Answer

Imprisonment

Answer

Injunction

Answer

Damages

Answer

Specific performance

Question 24

A contract is void ab initio if:

Accepted Answer

It is unenforceable from the outset

Answer

It is terminated by mutual agreement

Answer

It is breached by one party

Answer

It is frustrated by an unforeseen event