The Contents of the Contract

1. Which of the following best describes an express term in a contract?

• A term implied by law

• A term that is agreed upon orally or in writing by both parties

• A condition imposed by statute

• A term applied only in international contracts

What is the main difference between a condition and a warranty in a contract?

• Conditions are implied; warranties are express

• A breach of a condition allows contract termination; a breach of a warranty allows only damages

• Conditions apply only in written contracts

• Warranties must be signed by both parties

What are innominate terms?

• Terms that are always minor

• Terms that are always major

• Terms where the remedy depends on the effect of the breach

• Terms only found in oral contracts

In which case was the concept of innominate terms established?

• Carlill v Carbolic Smoke Ball Co.

• Balfour v Balfour

• Hong Kong Fir Shipping v Kawasaki Kisen Kaisha

• Donoghue v Stevenson

Which of the following statements about representations is TRUE?

• They are always legally binding terms of the contract

• They are statements made to persuade someone to enter a contract

• They can never result in a claim for damages

• They override written terms

Which is an example of an implied term in a contract?

• A delivery date mentioned in the agreement

• A term written in bold in a contract

• A requirement that goods be of satisfactory quality

• A negotiated price for services

What legal rule helps courts decide whether a statement is a term or a representation?

• The postal rule

• The contra proferentem rule

• The four corners rule

• The objective intention test