Terms of a Contract II

What is a condition in a contract?

• A term that can be broken without significant consequences

• A term that is implied by law

• A term that is essential and a breach has significant effects

• A term that is always written in the contract

What does a warranty allow in the event of a breach?

• The contract is automatically void

• The party can sue for damages but not repudiate the contract

• The contract can be rescinded immediately

• The party must continue to perform their obligations

In the case of Associated Metal Smelters Ltd v Tham Cheow Toh, what was the main issue?

• Whether the contract was signed

• Whether the plaintiff paid the correct amount

• Whether the defendants had a valid counter-claim

• Whether the furnace could reach the required temperature

What is an exclusion clause?

• A clause that must be written in large print

• A clause that is always enforceable

• A clause that restricts or modifies liability

• A clause that allows for unlimited liability

What must be true for an exclusion clause to be incorporated into a contract?

• It must be written in bold letters

• It must be verbally agreed upon

• It must be included in a document where terms are normally found

• It must be signed by both parties

In the case of Olley v Marlborough Court Ltd, why was the exclusion clause not valid?

• It was not signed by the plaintiff

• The notice was given after the contract was formed

• The hotel did not have a valid license

• The clause was not written clearly

What did the court rule in Curtis v Chemical Cleaning and Dyeing Co regarding misrepresentation?

• The exclusion clause was valid

• The exclusion clause could not be relied upon due to misrepresentation

• The plaintiff was at fault for not reading the clause

• The case was dismissed

What is a fundamental breach?

• A breach that can be ignored

• A minor breach that does not affect the contract

• A breach that goes to the heart of the contract

• A breach that is always excusable