CRA2015

Question 1

What is the definition of Express Explanation?

Answer 1

A set of terms that are explicitly stated (written or verbally) prior to entering the contract.

Question 2

What is the definition of Implied Explanation?

Answer 2

A set of terms that have not been discussed but are naturally present, they are ‘unwritten’ but presumed.

Question 3

List the three ways a term can be implied.

Answer 3

• By custom (tradition)
• By fact (the RM will assess if the term is required to make the contract make business sense)
• Through statute (CRA 2015)

Question 4

What is a Condition Explanation?

Answer 4

Major/important term, without it the contract makes no contractual sense. Outcome of breach: repudiation and or claim damages.

Question 5

What case is associated with Condition Explanation?

Answer 5

Poussard v Spiers

Question 6

What is a Warranty Explanation?

Answer 6

A minor term in a contract. Outcome of breach: damages only.

Question 7

What case is associated with Warranty Explanation?

Answer 7

Bettini v Gye

Question 8

What is an Innominate term?

Answer 8

A term that is not clear if it is a condition or a warranty; the courts assess the consequences of the breach.

Question 9

What case is associated with Innominate terms?

Answer 9

Hong Kong Fir v Kawasaki

Question 10

What does S.9 state regarding goods?

Answer 10

The goods must be of satisfactory quality.

Question 11

When does S.9 not apply?

Answer 11

• The fault has been brought to the consumer’s attention
• The fault could have been identified upon inspection
• The goods are part of a sample

Question 12

What does S.10 state regarding goods?

Answer 12

The goods must be fit for purpose. It must be reasonable for you to have relied on the skill and judgement of the trader. (Baldry v Marshall)

Question 13

What does S.11 state regarding goods?

Answer 13

Goods must match description.

Question 14

What is the side rule associated with S.11?

Answer 14

Moore and Co Ltd - this also applied to how goods are packaged.

Question 15

What does S.20 state about remedies?

Answer 15

Short term right to reject can be done 30 days from delivery. Full refund must be given within 14 days on original payment method.

Question 16

What does S.23 state regarding remedies?

Answer 16

Repair or replacement must be completed within a reasonable time and without inconvenience. Trader must bear all costs.

Question 17

What does S.24 state about remedies?

Answer 17

If the above is not satisfactory, then there is the right to a price reduction or a final right to reject (complete refund).

Question 18

What does S.31 state regarding traders?

Answer 18

Limits liability. Traders cannot exclude S.9, S.10, or S.11 – even if it has been successfully ‘incorporated’.

Question 19

What does S.49 state about services?

Answer 19

The service provided must be completed with reasonable care and skill.

Question 20

What case is associated with S.49?

Answer 20

Thake v Maurice

Question 21

What does S.52 state regarding services?

Answer 21

Services must be completed within a reasonable time. The reasonable time will be dependent on their circumstances.

Question 22

What does S.55 state about remedies for services?

Answer 22

The consumer has the right to repeat performance, which must be completed within a reasonable time and without inconvenience on the consumer.

Question 23

What does S.56 state regarding remedies?

Answer 23

The right to a price reduction, by an appropriate amount, must be given within 14 days.

Question 24

What does S.57 state regarding traders?

Answer 24

Traders cannot exclude S.49 or S.52 - even if it has been successfully ‘incorporated’.

Question 25

What must the wording of an exclusion clause be?

Answer 25

Clear and free from any ambiguity.

Question 26

What is the contra proferentem rule?

Answer 26

If the term is ambiguous, it is for the party relying on the clause to prove that it is not.

Question 27

What is the principle of Incorporation by Signature?

Answer 27

Even if the contract terms have not been read, a signature will mean a clause can be incorporated into a contract.

Question 28

What is an exception to Incorporation by Signature?

Answer 28

If the party has relied on verbal communication.

Question 29

What case is associated with Incorporation by Signature?

Answer 29

Curtis v Chemical Cleaning.

Question 30

What is required for Incorporation by reasonable notice?

Answer 30

Notice must be given prior to entering the contract.

Question 31

What case is associated with Incorporation by reasonable notice?

Answer 31

Olley v Marlborough Hotel

Question 32

What is required for Incorporation by Prior dealings?

Answer 32

The contract must be the same type of contract and must be consistent.

Question 33

What case is associated with Incorporation by Prior dealings?

Answer 33

Hollier v Rambler Motors.

Question 34

What is the ‘Red hand rule’?

Answer 34

Additional effort must be taken to draw attention to a particularly harsh clause or a clause with significant side effects.

Question 35

What does S.65 state regarding unfair terms?

Answer 35

Unfair terms will not bind a consumer.

Question 36

What is defined as an unfair term?

Answer 36

A term which places the consumer at a disadvantage by disproportionately increasing their responsibilities over the trader.

Question 37

What does UCTA 1977 apply to?

Answer 37

Business-to-business contracts.

Question 38

What does S.2(1) state regarding liability?

Answer 38

You cannot exclude liability for death or personal injury caused by negligence.

Question 39

What does S.3 impose regarding reasonableness?

Answer 39

Imposes a reasonableness test considering:
* If the term was brought to the parties’ attention prior
* Bargaining power of the parties.