Contract Law Quiz (1)


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A quick 10 question test yourself quiz on some basic principles of contract law

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Contract Law Quiz (1)

  1. 1. Question 1What does freedom of contract mean?•A party to a contract may withdraw and enter a new onewith a competitor•Parties to a contract may change the conditions at will•Large organisations can withdraw contracts when theywish•Parties to a contract are free to negotiate any contractthey are happy to be bound by
  2. 2. Question 2What is a representation?•A statement which sets out the obligations of the parties•A statement of fact made which turns out to be wrong•A statement of fact made before a contract is madewhich may induce the contract•A boast or hype used to sell a product (trader’s puff)
  3. 3. Question 3What is the difference between a condition and awarranty?•A warranty is only available under certain conditions•A condition is a term vital to a contract, a warranty less so•No difference – they are both terms of a contract•A condition is not necessary to a contract whereas awarranty is
  4. 4. Question 4What are implied terms of a contract?•Terms which have been discussed between the parties•The contract would make little sense without them•Terms which have been laid down by an Act of Parliament•Terms which have been written down
  5. 5. Question 5If you were to buy a pair of shoes which came apart at theseam within 6 months which section of the Sale of GoodsAct would have been breached?•13 – Goods will correspond to the description•15 – Samples supplied must correspond with the bulk ordersubsequently supplied•14 – Goods must be of merchantable quality and fit for purpose•12 – The seller has the right to sell the goods
  6. 6. Question 6What does an exemption clause seek to do?•Exclude or limit liability in the event of a breach ofcontract•Allow the stronger party to retain control•Provide for the safety of the consumer•Demonstrate that both parties are happy with thecontract
  7. 7. Question 7Under the Unfair Contract Terms Act what liabilitycan never be excluded from a contract?•Description of goods is as accurate as possible•Consumers have their right to change their minds within14 days•Replace defective products if they fail to satisfy theconsumer•Liability for death and injury
  8. 8. Question 8Why do businesses produce a standard formcontract which they use for all sales?•To bind customers to obligations which they don’tunderstand•To baffle customers with the use of legal jargon so theywill not question it•Cannot possibly negotiate separate terms with eachcustomer•To get in first with the “battle of the forms”
  9. 9. Question 9What can a consumer do if a contract is seen to behighly disadvantageous to them?•Go to trading standards and seek advice•Shop around for an alternative supplier with a bettercontract•Employ a solicitor to argue the terms•Sign up anyway as they are bound to get a fair deal
  10. 10. Question 10If two parties are negotiating over terms of acontract, when should performance begin?•When there is clear agreement between the parties•When the second contract is received•During negotiations between the parties•When the first contract is handed over
  11. 11. The End…..How did you get on?!