Chapter 8

Question 1

Define a term or clause.

Answer 1

A term is a clause in a contract, which sets out the respective rights, duties and obligations of the parties.

Question 2

Name and describe the different types of terms in a contract?

Answer 2

Essentialia - terms that identify a contract as a specific contract.
Naturalia - terms that are implied into a specific contract by law.
Incidentalia - other terms that the parties have agreed upon.

Question 3

Is it true that the naturallia apply automatically to a contract even if the parties have not specifically agreed to them?

Answer 3

Yes

Question 4

What are the ways in which terms become a part of the contract?

Answer 4

The terms incorporated into a contract can be expressed, implied, tacit and imposed.

Question 5

What is the difference between express, implied, tacit and imposed terms?

Answer 5

An express term is a term of a contract that is put into words or given some physical form by the contracting parties.

Terms can be implied by law or by trade usage. The nature and type of a contract will determine the scope of implied terms for the contract.

Tacit terms ate terms that the parties think are so obvious that they do not need to expressly include them in the contract.

Terms can be imposed by law or by parties, these are the terms that the parties or law wants to be included in the contract.

Question 6

If the party trying to impose terms took … steps to bring the term to the other party’s attention the terms will (not be/be) a part of the contract even if the customer did not read them.

Answer 6

Reasonable

Be

Question 7

Interpretation of a contract is limited to express/tacit/implied terms?

Answer 7

Express