Terms of Contracts: Master the Essentials of Contract Law

Question 1

Which of the following statements accurately describes an express term in a contract?

Accepted Answer

A statement explicitly specified within the written or oral agreement between the parties

Answer

A clause implied by the law or by the conduct of the parties

Answer

A provision that is inferred from the facts and circumstances surrounding the contract

Question 2

Implied-in-fact terms:

Accepted Answer

Arise when the parties' intentions can be reasonably inferred from the specific factual context of their agreement

Answer

Must be explicitly stated in the written terms of the contract

Answer

Are automatically included in all contracts by operation of law

Question 3

A breach of contract occurs when:

Accepted Answer

A party fails to perform or fulfill their contractual obligations

Answer

The contract becomes void or unenforceable

Answer

The parties mutually agree to terminate the contract

Question 4

The doctrine of frustration of contract applies when:

Accepted Answer

An unforeseen event beyond the parties' control makes it impossible or impracticable to perform the contract

Answer

The contract is void due to a lack of legal capacity

Answer

One party breaches the contract without justification

Question 5

A contract under seal is characterized by:

Accepted Answer

A formal written agreement that requires an official seal or other specific formality to be valid

Answer

A verbal agreement that is enforceable without any written documentation

Answer

An implied contract that is created by the parties' conduct

Question 6

A unilateral contract is:

Accepted Answer

A contract formed when one party makes a promise or offer that is accepted by another party's performance or action

Answer

A contract that is void due to lack of consideration

Answer

A contract in which both parties exchange promises

Answer

A contract that is created by operation of law

Question 7

Which feature is NOT characteristic of an express term?

Accepted Answer

It is implied by the courts

Answer

It is agreed upon by the parties

Answer

It can be either written or oral

Answer

It is legally binding

Question 8

What are the typical legal consequences of a breach of contract?

Accepted Answer

The non-breaching party may seek remedies such as damages or specific performance

Answer

The contract is automatically terminated upon breach

Answer

The breaching party is subject to criminal prosecution

Answer

The contract becomes void from the outset

Question 9

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

Accepted Answer

A condition is a more fundamental term than a warranty, and its breach allows the non-breaching party to terminate the contract

Answer

Conditions and warranties are essentially the same type of contractual term

Answer

A warranty is more fundamental than a condition, and its breach only entitles the non-breaching party to damages

Answer

Conditions are only found in written contracts, while warranties can be oral or written

Question 10

What is the fundamental purpose of the Unfair Contract Terms Act 1977?

Accepted Answer

To protect consumers from potentially unfair or misleading terms in contracts

Answer

To facilitate businesses in breaching contracts without legal consequences

Answer

To harmonize contract law across the United Kingdom

Answer

To prevent businesses from entering into contracts altogether

Question 11

Identify a key principle that underpins the English law of contract:

Accepted Answer

Freedom of contract, which allows parties to negotiate and enter into legally binding agreements

Answer

Government intervention, where the state heavily regulates and controls the formation and enforcement of contracts

Answer

Social justice, where contracts are primarily used to achieve equitable outcomes

Answer

Strict liability, where parties are held responsible for any breach of contract, regardless of fault

Question 12

What is the Statute of Frauds 1677 primarily concerned with?

Accepted Answer

Establishing a requirement for certain types of contracts to be evidenced in writing

Answer

Criminalizing the breach of contractual obligations

Answer

Abolishing the requirement for consideration in the formation of contracts