Contract Terms

Question 1

What are express terms?

Answer 1

Terms written in the contract by the parties.

Question 2

What are implied terms?

Answer 2

The parties dont write them in but the Law assumes they are part of the contract.

Question 3

Give some examples of implied terms.

Answer 3

Sale of goods act (1979)- buyer relies on description of goods so must match that.

Consumer rights act 2015- goods must be fit for purpose

Question 4

What is an exemption clause?

Answer 4

A term which purpots to exclude or limit liability.

They allow small firms to survive should something go wrong in the contract

Question 5

What is an unfair term?

Answer 5

A term that is unreasonably strict or unfair.

Question 6

What is required for exemption clauses and unfair terms to be enforcable?

Answer 6

Must be incorporated, interpreted as covering the loss claimed and complies with (unfair c’s act and consumer rights act)

Question 7

How can contract terms be incorporated?

Answer 7

By notice
By signiature
By course of dealing or trade custom

Question 8

Explain incorporation by notice

Answer 8

Notice must be given before contract is entered into

Terms must have been in a document intended to have contractual effect.

Question 9

What is the main case for incorporation by notice?

Answer 9

Parker v SE Rail, lost over £10 in cloakroom.

Party will be bound by a term if party has taken reasonable steps to bring it to their attention, does not matter if they are not aware or term.

Question 10

Describe incorporation by signature.

Answer 10

‘If a claimant signs a contract, he agrees to be bound by all the terms’

L’strange v Graucob

Question 11

What notice does an unfair term require?

Answer 11

A greater degree of notice

Question 12

What test is applied by the courts to interpret a clause?

Answer 12

Objective test- how would the reasonable person have understood the document given the knowledge available to the parties

Question 13

What is contra proferetem?

Answer 13

Any benefit of ambiguity should be given to the party who did not draft the clause

Question 14

What type of relation does the UCTA 1977 deal with?

Answer 14

Business dealing with another consumer

Question 15

What type of relation does the CRA 2015 deal with?

Answer 15

Business dealing with consumer

Question 16

What does section 2 (1) of UCTA say?

Answer 16

Cant exclude liability for injury/death via negligence

Question 17

What does section 6 of the UCTA say?

Answer 17

You can exclude some implied terms, but only when reasonable to do so

Question 18

What does section 3 (2) of the UCTA say?

Answer 18

When in breach of c, cant exclude L in respect of the breach unless it satisfies obj test.

Question 19

What is the objective test for UCTA?

Answer 19

Must prove term is fair with the circumstances when contract was made

Question 20

Guidelines for determining reasonableness under UCTA

Answer 20

Bargaining strength of parties
Was it brought to their attention
Was there a benefit provided if party agreed to term

Question 21

What is sec 9 of the CRA?

Answer 21

Goods must be of a satisfactory quality

Question 22

What is sec 10 of the CRA?

Answer 22

Goods must be fit for purpose

Question 23

What is section 49 of the CRA?

Answer 23

Services to be performed with reasonable care and skill

Question 24

Name two other effects of the CRA 2015

Answer 24

Renders void any term excluding L for death/injury from neg

Renders void any term unfair (unless core to the contract)