Contracts

Question 1

What are the two main sources of the law of contracts

Answer 1

Case Law

Statute

Question 2

The of contract is made by what

Answer 2

mutual exchange of obligations. Each side must contribute something to the agreement to make it binding.

Question 3

What contract is legally binding without the need for any exchange of obligations.

Answer 3

Deeds - formally under seal but nowadays replaced by signature with witness.

Question 4

What does the term agreement mean in law

Answer 4

mutual understanding between parties.

Question 5

What does the term contract mean in law

Answer 5

agreement binding in law.

Question 6

Every contract must embody a ‘what’ except for a contract by ‘what’

Answer 6

agreement

deed

Question 7

What are the four main elements that need to be in place for a contract to exist.

Answer 7

Agreement (Offer & Acceptance)

Consideration

Intention to create legal relations

Contractual Capacity

Question 8

consideration is more commonly known as a ‘what’ to the contract

Answer 8

Contribution.

Question 9

What is meant by the term ‘offer’

Answer 9

An Offer is a definite promise to be bound on specified or ascertainable terms.

Question 10

Exhibition of goods for sale is not an offer but…

Answer 10

An invitation to make an offer.

Question 11

What are the three ways offer and acceptance can come into force.

Answer 11

Written

Oral

Inferred from the parties conduct.

Question 12

What cannot constitute acceptance, except with the exception of goods and services taken on a sale or return basis.

Answer 12

Silence; implied acceptance if goods not returned within a reasonable time.

Question 13

Conditional Acceptance is classed as what.

Answer 13

A counter offer.

Question 14

A counter offer cannot be ‘what’ at a later date.

Answer 14

Accepted; as it destroys the original offer.

Question 15

Construction contracts usually begin performance of the parties obligations on the assumption that.

Answer 15

There will shortly be a concluded agreement.

Question 16

The courts will usually uphold a claim that a contract has come into existence when the parties have agreed on what.

Answer 16

The essential terms;

price, scope of works, commencement date, duration.

Minor omissions will not prevent the contract coming into existence.

Question 17

What in contract law can have retrospective effect if it’s deemed the parties intended it so be.

Answer 17

Acceptance;

Question 18

What is Revocation and when does it come into effect

Answer 18

It’s the withdrawing of an offer and it comes into effect when it reaches the offeree.

Question 19

Revocation isn’t allowed under some jurisdictions. Why is this.

Answer 19

If the offeree has relied on the offer.

e.g a main contractor tendering on the basis of sub-contract tenders.

Question 20

Most construction work is undertaken through tendering based on one party’s ‘what’

Answer 20

Standard conditions of contract or standard terms of business.

Question 21

What is the major drawback to Standard conditions of contract or standard terms of business.

Answer 21

There may be particularly onerous provisions hidden within such standard clauses.

Question 22

Regarding particularly onerous provisions hidden within standard clauses, what is the view of the courts.

Answer 22

Particularly onerous clauses should be brought fairly to the attention of the other party adversely affected. Courts refuse to enforce onerous conditions

Question 23

What act could be enforced to safeguard against particularly onerous clauses in standard conditions of contract or standard terms of business.

Answer 23

Unfair Contract Terms Act.

Question 24

What is the process of parties going back and forth exchanging standard contract conditions known as.

Answer 24

The battle of forms.

Question 25

What does Repugnantcy mean

Answer 25

An inconsistency between two or more clauses of the contract.

Question 26

What are the three main types of consideration.

Answer 26

Payment of money

Provision of goods

Performance of work.

Question 27

How would a court decide if consideration has taken place.

Answer 27

If benefit has occurred to one party or detriment to the other.

Question 28

The courts would not determine that consideration has occurred for anything that has what?

Answer 28

Already been done. eg;

If B voluntarily dug A’s garden yesterday, today’s promise of reward is not binding because B gives no fresh consideration to the bargain.

Question 29

Additional reward after the execution of the contract is what.

Answer 29

None binding.

Question 30

Statements made by the parties during their negotiations may have what

Answer 30

Contractual effect.

Question 31

A statement made by either party during the negotiations are more likely to become binding if.

Answer 31

If it is made immediately before agreement is reached

If the maker of the statement had special knowledge

Question 32

What are the two different types of terms.

Answer 32

Implied terms and expressed terms.

Although not specified by the parties in writing or orally, some implied terms are as binding as express terms

Question 33

Contracts under the Sales of Goods Act, expanded to the supply of services under the Supply of Goods and Services Act 1982, carry with it terms that are

Answer 33

implied by statue.

Question 34

Construction contracts are subject to implied terms that the supplier will ‘what’

Answer 34

Carry out a service with reasonable skill and care and that, in the absence of agreement, the service will be carried out within a reasonable time and for a reasonable charge.

Question 35

Implied terms can varied by ‘what’ but is subject to however, the effect of ‘what’

Answer 35

express agreement

Unfair Contract Terms Act.

Question 36

What are the two most common Implied terms in a building contract.

Answer 36

The building owner shall give possession of the site within reasonable time; and give instructions and information at reasonable times.

The contractor must carry out the work with proper skill and care (workmanlike manner).

Question 37

A contract will have no implied terms if the matter at question is dealt with by ‘what’

Answer 37

Expressed Terms.

Question 38

What are the two most common Implied terms that can not be implied in building contracts.

Answer 38

That the contractor will progress the work regularly and diligently, since the contractor is obliged to complete by completion date and is entitled to arrange his programme of work within overriding obligation

The employer (client) gives no implied warranty of the nature or suitability of the site or subsoil, or as to the practicability of the design

Question 39

Who usually drafts exclusion clauses.

Answer 39

The party seeking to rely on it.

Question 40

A written exclusion clause may be overridden by ‘what’

Answer 40

An oral statement.

Question 41

Why would a standard contract have an exclusion clause written into it.

Answer 41

to exclude or limit liability of one party in event of breach.

Question 42

how do standard contracts avoid an oral override to an exclusion clause.

Answer 42

By providing that no statement is to affect the conditions unless confirmed in writing

Question 43

To constitute misrepresentation, the false statement, whether untrue, fraudulent or innocent must be ‘what’

Answer 43

made before or at the time of contracting

Question 44

‘what’ may amount also to misrep, as when a previous statement becomes false before the contract is concluded.

Answer 44

Silence

Question 45

misrepresentation does not make the contract voidable unless it ‘what’

Answer 45

induced the contract.

Question 46

Remedies to misrep depend upon whether it was

Answer 46

Fraudulent or innocent

Question 47

What year is the misrepresentation Act

Answer 47

1967

Question 48

An alternative remedy for misrep may be available in ‘what’

Answer 48

Tort for negligent misstatement.

Question 49

The right to rescind a contract for misrepresentation, innocent or fraudulent, is available only if ‘what’

Answer 49

Restoration of the parties to their former situation is possible, and if no innocent party would suffer.

Question 50

What is economic duress

Answer 50

Economic duress in contracts occurs where a party to a contract threatens to cancel a contract unless the other party agrees to their demands. The economic duress occurs when the other party is stuck, as there are no other practical options but to agree to the new terms of the contract.

Question 51

What are the most common cases for economic duress

Answer 51

banks requiring charges over individuals properties to secure loans.

Question 52

What is Tort law

Answer 52

English tort law concerns the compensation for harm to people’s rights to health and safety, a clean environment, property, their economic interests, or their reputations

Question 53

A ‘Tort’ is a wrong in what type of law as opposed to what other type of law

Answer 53

Civil as opposed to Criminal

Question 54

A contract cannot be enforced against a person who is not party to the contract. What is an example of this.

Answer 54

Clause allowing the employer to pay money directly to a subcontractor – this may be used by the employer but cannot be enforced by the subcontractor not party to the main contract.

Question 55

What is the law of privity

Answer 55

Is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such.

Question 56

What could be put in place in a contractual setting that intendeds to confer rights on an identified party

Answer 56

Collateral Warranty.

Question 57

What does ‘discharging the contract’ mean

Answer 57

General term for the release of contractual obligations, once discharged, neither party can rely on its terms but can only enforce whatever rights may arise from the discharge.

Question 58

What are the four ways in which a contract can be discharged.

Answer 58

Parties perform all their obligations

Performance is rendered impossible or sterile, frustrating the contract.

Serious breach by one party.

One party is in breach and the other party recovers damages in satisfaction of the failure to perform.

Question 59

What is Repudiation

Answer 59

Express of implied refusal by one party to perform the contract.

Question 60

If Repudiation has occurred what are the consequences

Answer 60

Innocent party elects to treat the contract as discharged and is relieved from further liability. The innocent party is entitled to claim damages: flowing from the breach, flowing from the termination.