Contract Terms Quiz

Oscar and Rosie are entering into a contract for a car sale. What are warranties in this contract?

• Terms that are not legally binding

• Major terms that go to the root of the contract

• Minor terms that do not affect the contract

• Terms that are always implied

Isabelle and Sebastian are entering into a business contract. What are innominate terms in their contract?

• Terms that are always implied

• Terms that can be either conditions or warranties

• Terms that are not legally binding

• Terms that are always conditions

Benjamin and Isla are entering into a business partnership. How can terms be implied into their contract?

• Through written agreement and oral agreement

• Through common law and statute

• Through negotiation and arbitration

• Through mediation and litigation

Sophia and Eesha are discussing a contract they are drafting for their new business venture. They realise they forgot to include a term about how profits will be shared. Sophia suggests that the term is so obvious that it should be included without being explicitly stated. What test are they considering to determine if this term should be part of the contract?

• A test to determine if a term is explicitly stated in a contract

• A test to determine if a term is necessary for business efficiency

• A test to determine if a term should obviously be part of the contract

• A test to determine if a term is included in oral negotiations

George and Ella are starting a new business together. They have a contract, but some terms are not explicitly stated. What does the term "terms implied through business efficiency" mean in this context?

• Terms that are explicitly agreed upon in the contract

• Terms that are necessary to make the contract work efficiently

• Terms that are included in the contract through oral negotiations

• Terms that are only applicable in international contracts

Evie and Rohan are discussing how terms can be implied into a contract for a new business venture they are planning. Which of the following is NOT a way terms can be implied into a contract?

• Through common law

• Through statute

• Through oral agreement

• Through business efficiency

Alexander and Grace entered into a business agreement to supply goods. However, they did not specify certain terms in their contract. What is the significance of the Moorcock 1889 case in such a scenario?

• It established the importance of written contracts

• It highlighted the role of implied terms for business efficiency

• It emphasised the need for oral agreements

• It demonstrated the irrelevance of implied terms

Jacob and Ava are discussing a contract for a project. What is the difference between a term and a representation in their contract?

• A term is legally binding, a representation is not

• A representation is legally binding, a term is not

• Both are legally binding

• Neither is legally binding

Priya and Ava are discussing the terms of a contract they are about to sign. Priya mentions a term that is not written in the contract, but she believes it is obviously necessary for the agreement. What is the main focus of the officious bystander test in this scenario?

• To determine if a term is explicitly stated

• To assess if a term is obviously necessary

• To evaluate the length of the contract

• To analyse the number of parties involved

Eesha and Lily had a long-standing business relationship where they frequently entered into agreements with minimal details. In one instance, they agreed on a deal without specifying all the terms. Why did the courts allow the term in this case despite the lack of specificity?

• Because it was financially beneficial

• Because of prior conduct of the parties

• Because it was legally required

• Because it was explicitly stated