Question 1

Which of the following disclaimers is least likely to form part of the contract?

Accepted Answer

A disclaimer brought to the attention of the customer as soon as the customer complains about the service provided is least likely to form part of the contract as it is not agreed to by the customer before the service is provided. The other options involve the customer receiving, signing, or implying agreement to the disclaimer before or during the formation of the contract.

Question 2

The sale of goods legislation implies into contracts for the sale of goods a number of important terms relating to delivery (in the absence of agreement to the contrary).Which of the following is not one those terms?

Accepted Answer

The term that the buyer must pay to put the goods into a deliverable state is not an implied term under the sale of goods legislation. Typically, it is the seller's responsibility to ensure that the goods are in a deliverable state at the time of delivery, unless otherwise agreed upon.

Question 3

Jack and Neo have a longstanding commercial relationship whereby every few months Neo orders widgets from Jack.Which of the following is most likely to be an implied term in the contract?

Accepted Answer

Since Jack and Neo have a longstanding commercial relationship, it is likely that the place of delivery has already been established and agreed upon in previous orders, and therefore is an implied term in the contract. The other options are not necessarily implicit in the contract between Jack and Neo.

Question 4

Janet is a hairstylist who runs her own hair salon in Brisbane.Jesse is a first-time patron of Janet's salon.After her haircut, Jesse's hair does not look the way she expected it to look.Jesse wants to sue Janet for breach of contract.Janet however denies liability by claiming that there is an express term disclaiming all liability not resulting from negligence.In which of the following circumstances will Janet not be able to rely on the disclaimer?

Accepted Answer

The disclaimer on the receipt is given to the customer after the contract has been entered into (after payment), so it cannot form part of the contract terms to which Jesse agreed.

Question 5

Cyril is a lawyer who wants to buy an apartment in the city.When he goes to view the apartment it is bare.The developer promises him that the apartment will be fully furnished when he purchases it.However the developer knows that furniture is not included in the purchase price.Cyril purchases the apartment.The developer has made a:

Accepted Answer

The developer knowingly made a false statement (that the apartment would be fully furnished) to induce Cyril to purchase the apartment, which constitutes fraudulent misrepresentation.

Question 6

There is no statutory implied promise by the seller that the goods supplied will be fit for their purpose if:

Accepted Answer

The statutory implied promise by the seller that the goods will be fit for their purpose generally applies when the buyer makes the intended purpose known to the seller, relies on the seller's skill and judgment, and the seller deals in goods of that description. However, this implied promise does not typically apply to transactions like garage sales, which are informal and where the buyer cannot reasonably expect the seller to guarantee the fitness of the goods for a particular purpose.

Question 7

Jack negotiates with Jill to buy her red Ferrari.Which of the following will most likely be unenforceable as a non-contractual representation?

Accepted Answer

Jill's statement that red Ferraris go faster is a subjective opinion rather than a factual claim, making it less likely to be enforceable as a part of the contract. It's considered puffery, which is an exaggerated or hyperbolic statement that a reasonable person would not take as a fact.

Question 8

Despite the parol evidence rule, a court will allow evidence of oral statements relating to a written contract in certain circumstances.Which of the following is not one of those circumstances?

Accepted Answer

The parol evidence rule generally prohibits the admission of oral statements intended to add to, vary, or contradict the terms of a written contract. However, oral evidence can be admitted to establish the invalidity or unenforceability of a contract, to clarify ambiguities, or to show agency relationships. It is not typically allowed to argue that a written term was not meant to be part of the contract, as this would directly contradict the written document's terms.

Question 9

Which of the following is not a circumstance where a written contract will be void and unenforceable according to the legal rule of non est factum?

Accepted Answer

The legal rule of non est factum applies when a person signs a contract under circumstances where they did not understand the nature of the document they were signing. This includes situations where a person is blind, illiterate, or does not understand the language of the contract. However, if a person simply did not read the contract because they were in a hurry, this does not meet the criteria for non est factum and the contract would still be enforceable.

Question 10

Which of the following is not a type of misrepresentation?

Accepted Answer

Reckless misrepresentation is not a recognized type of misrepresentation. The commonly recognized types of misrepresentation in law are fraudulent misrepresentation, innocent misrepresentation, and negligent misrepresentation.

Question 11

Larry visits Zhivago's restaurant.Larry tells Zhivago that he is vegetarian, and Zhivago recommends the lasagne.Zhivago has forgotten that there is chicken in the lasagne.Larry orders the meal.Zhivago has made a:

Accepted Answer

Zhivago has made a negligent misrepresentation because he made a statement without reasonable grounds for believing it to be true.

Question 12

Which of the following is not a requirement that must be satisfied before a court will imply a (non-statutory) term into a contract?

Accepted Answer

The other three requirements (reasonableness, necessity, and obviousness) are commonly accepted grounds for implying a term into a contract, but there is no requirement that the term be in writing for it to be implied.

Question 13

Esther agrees to lease an apartment from John.Before the signing of the contract, Esther asks John if the toilets in the apartment are all working properly because she is very particular about her toilets.John assures her that they are all working properly.There is no reference to the toilets in the written contract.After moving into the apartment, Esther finds that none of the toilets work properly.Which of the following is most likely to be a consequence?

Accepted Answer

John's verbal assurance about the toilets working properly can be considered a collateral contract, which is a separate agreement that supplements the main contract. Since the toilets do not work as promised, John is in breach of this collateral contract, and Esther may be entitled to damages for the misrepresentation.

Question 14

Mel owns Brazilion Beauty, a beauty salon in Queensland.She accepts Debbie as an apprentice stylist.Included in Debbie's contract is a clause that states that in the event of termination of her employment, Debbie will not be able to be employed by any other beauty salon in Queensland or begin her own beauty salon in Queensland for a period of 20 years.After five years with Brazilion Beauty, Debbie leaves the salon.Which of the following is the most likely outcome?

Accepted Answer

The restraint of trade clause in Debbie's contract is too unreasonable as it prohibits her from working in the same industry in Queensland for a period of 20 years. Courts generally do not enforce such clauses as they are considered to be against public policy and restrict a person's ability to earn a livelihood. Therefore, Debbie will likely not be bound by the clause and will be able to work for other beauty salons or start her own salon in Queensland.

Question 15

X wants to buy potatoes in bulk from Y and goes to Y's warehouse to inspect the potatoes.At the warehouse, X likes the look of the potatoes and agrees to buy 500 bags of potatoes at $1 per kilogram.In the absence of agreement to the contrary, when will ownership of the potatoes be transferred to X?

Accepted Answer

Ownership of the potatoes will be transferred to X when Y weighs the bags of potatoes and informs X of the total price, as this action signifies that the potatoes have been ascertained and the price determined, which are necessary steps for the transfer of ownership in a sale of goods by weight.

Quiz 8: Contract Law: Terms of the Contract