Contents

Question 1

How can express terms be incorporated into a contract?

Answer 1

By signature

By reasonable notice before or at the time of the contract

A previous consistent course of dealing

Question 2

How can a previous course of dealing be incorporated into a contract?

Answer 2

Regular course of dealings on exactly the same terms.

3/4 dealings per year and a sale note has routinely been handed over.

Question 3

What are the three classifications of terms?

Answer 3

Conditions
Innominate terms
Warranties

Question 4

What are ‘conditions’?

Answer 4

Terms which go to the heart of the contract.

Question 5

What is the remedy for a breach of a condition?

Answer 5

Termination of the contract and damages

Question 6

What are ‘warranties’?

Answer 6

A minor term of the contract.

Question 7

What is the remedy for a breach of remedy?

Answer 7

Damages only

Question 8

What are ‘innominate terms’?

Answer 8

A term which cannot be classified as either a condition a warranty.

Question 9

What is the remedy for a breach of innominate term?

Answer 9

This depends on the severity of the breach.

If it is a fundamental breach, the injured party can repudiate and claim damages.

If it is non-fundamental, the injured party can only claim damages.

Question 10

How can terms be implied into a contract?

Answer 10

By well-known and legally binding customs of a particular trade.

Where it so obvious that the contract would be unworkable without the relevant term.

Implied by common law.

Implied by statute.

Question 11

What conditions can be implied into B2B contracts from the Sale of Goods Act? (3)

Answer 11

The seller must have the right to sell the goods.

The goods should correspond with their description.

The goods should be of satisfactory quality.

Question 12

What conditions can be implied into B2B contracts from the Supply of Goods and Services Act? (3)

Answer 12

The transferor has the right to transfer the property.

The goods should correspond with their description.

Goods will be of satisfactory quality.

Question 13

What innominate terms can be implied into B2B contracts from the Supply of Goods and Services Act? (3)

Answer 13

Where work or a service is done in the course of business, it will be carried out with reasonable care and skill.

Work will be done within a reasonable time.

A reasonable sum will be charged if a price has not been fixed.

Question 14

What conditions are implied into B2C contracts for goods and services under the CRA? (3)

Answer 14

Goods should be of satisfactory qualify

Goods should be fit for purpose

Goods should correspond with their description

Question 15

What innominate terms are implied into B2C contracts for goods and services under the CRA? (4)

Answer 15

The seller has the right to sell or transfer goods at the time.

Services should be carried out with reasonable care and skill.

A reasonable sum will be charged if a price is not fixed.

Work will be done in a reasonable time.

Question 16

What rights do consumers have if the goods do not correspond to the contract (quality or description) or not fit for purpose?

Answer 16

A short-term right to reject

The right to repair or replacement

The right to a price reduction or final right to reject the goods to get a partial refund

Question 17

What is the time limit for the short-term right to reject goods where they do not correspond to the contract?

Answer 17

Non-perishable goods = 30 days from the date of delivery

Perishable = no longer than the goods could reasonably be expected to last.

Question 18

What are consumers rights where services/work do not conform to the contract due to breach of an express/implied term?

Answer 18

Section 54 CRA - the consumer has a right to require repeat performance.

Question 19

What are consumers rights where services/work are not completed in a reasonable time?

Answer 19

The consumer has a right to an appropriate price reduction.