Express Terms Flashcards
What is an express term in a contract?
a) A term that is implied by law
b) A term explicitly agreed upon by the parties
c) A term added by a judge after a dispute
d) A term that applies automatically to all contracts
b) A term explicitly agreed upon by the parties
Explanation: An express term is a clearly agreed provision between parties, whether written, oral, or incorporated by course of dealing.
Which case established that a signed contract binds a party even if they have not read it?
a) Parker v South Eastern Railway
b) L’Estrange v Graucob
c) Thornton v Shoe Lane Parking
d) Curtis v Chemical Cleaning
b) L’Estrange v Graucob
Explanation: L’Estrange v Graucob [1934] confirmed that signing a contract binds a party, even if they did not read or understand it.
What is the main exception to the rule in L’Estrange v Graucob?
a) If the document was not intended to be contractual
b) If the contract was signed under duress
c) If the contract contained an unfair term
d) If the contract was oral
a) If the document was not intended to be contractual
Explanation: If a document was merely a receipt or acknowledgment (e.g., Grogan v Robin Meredith), then signing it does not create contractual obligations.
How can express terms be incorporated without a signature?
a) By assuming the party knows them
b) By including them in an email after the contract
c) By giving reasonable notice before the contract is made
d) By adding them to an invoice
c) By giving reasonable notice before the contract is made
Explanation: Terms can be incorporated by notice, but the party must take reasonable steps to bring them to the other party’s attention before or at the time of contracting (Parker v South Eastern Railway).
Which case states that particularly onerous terms must be brought to the other party’s attention in a clear and prominent way?
a) Thornton v Shoe Lane Parking
b) Interfoto v Stiletto
c) Parker v South Eastern Railway
d) Hollier v Rambler Motors
b) Interfoto v Stiletto
Explanation: Interfoto v Stiletto [1989] confirmed that onerous terms require special attention, such as red ink or a clear warning.
John parks his car in a multi-storey car park. A ticket is issued, stating “subject to conditions displayed inside.” Later, he is injured and the car park refuses liability based on those conditions. Is he bound by them?
a) Yes, because he accepted the ticket
b) No, because he never read the conditions
c) No, because the contract was made before the ticket was issued
d) Yes, because all car parks operate this way
c) No, because the contract was made before the ticket was issued
Explanation: In Thornton v Shoe Lane Parking, Lord Denning ruled that the contract was formed when money was inserted into the machine. Any terms issued afterwards were too late.
A customer purchases a lottery ticket online. Before purchasing, they must tick a box agreeing to the terms. Are these terms incorporated?
a) Yes, because ticking the box shows agreement
b) No, because the customer didn’t read them
c) Yes, but only if the terms were highlighted in red
d) No, because online contracts are not binding
a) Yes, because ticking the box shows agreement
Explanation: In Parker-Grennan v Camelot [2024], the Court of Appeal ruled that online terms are incorporated if reasonable steps were taken to highlight them, such as tick-box agreements and hyperlinks.
A shop regularly sends invoices to a customer containing standard terms. On the fifth transaction, a dispute arises over one of these terms. Will the court likely consider the term incorporated?
a) Yes, if the course of dealing was consistent and regular
b) No, because invoices are not contracts
c) Yes, because the shop is a business
d) No, because only signed contracts are binding
a) Yes, if the course of dealing was consistent and regular
Explanation: If terms have been regularly used over time, they may be incorporated by a course of dealing (Petrotrade v Texaco).
In which scenario would an entire agreement clause be most useful?
a) A contract that contains a mix of written and verbal terms
b) A contract that is only verbal
c) A contract between friends
d) A contract that excludes liability for misrepresentation
a) A contract that contains a mix of written and verbal terms
Explanation: Entire agreement clauses prevent disputes by excluding oral agreements and previous negotiations from being part of the contract.
If a document is handed to a customer after a contract is formed, can it be binding?
a) Yes, because terms are always implied
b) No, unless it was agreed beforehand
c) Yes, if the customer does not object
d) No, because terms must be agreed before or at the time of contract
d) No, because terms must be agreed before or at the time of contract
Explanation: Terms given after the contract is formed are not binding (Thornton v Shoe Lane Parking).
A company introduces new terms after a long-standing business relationship has begun. When are these terms binding?
a) Immediately, because of the prior relationship
b) Only if reasonable notice is given and the other party continues to contract
c) Only if the other party signs a document
d) Never, because new terms must be part of the first contract
b) Only if reasonable notice is given and the other party continues to contract
Explanation: New terms must be reasonably brought to attention, and acceptance can be implied through continued dealing.
A company places an order for goods and receives a confirmation email referring to standard terms on its website. Will these terms be incorporated?
a) Yes, because they are publicly available
b) No, unless reasonable notice was given before contracting
c) Yes, because all companies use standard terms
d) No, because emails cannot form contracts
b) No, unless reasonable notice was given before contracting
Explanation: Terms must be communicated before or at the time of contracting, not after (Interfoto v Stiletto).
A business contracts five times per year with a supplier. On the sixth order, the supplier refers to new terms. Are these incorporated?
a) No, because they are inconsistent with prior dealings
b) Yes, because five prior contracts exist
c) No, unless reasonable steps were taken to inform the buyer
d) Yes, because the supplier controls the terms
c) No, unless reasonable steps were taken to inform the buyer
Explanation: McCutcheon v MacBrayne ruled that terms must be consistently and regularly incorporated.
A customer signs a document they believe is a delivery note, but it contains exclusion clauses. Are they bound by them?
a) Yes, because they signed it
b) No, because the document was not contractual
c) Yes, if they were told about the clauses
d) No, because all exclusion clauses are invalid
b) No, because the document was not contractual
Explanation: If a document does not appear to be contractual, it does not incorporate terms (Grogan v Robin Meredith).
A company uses an automatic check-in kiosk at its hotels. A guest sees terms on the screen after payment. Are these terms binding?
a) Yes, because they were displayed
b) No, because the contract was formed at payment
c) Yes, if they were reasonable
d) No, because automated machines cannot form contracts
b) No, because the contract was formed at payment
Explanation: Thornton v Shoe Lane Parking confirmed that contracts formed at a machine cannot incorporate terms displayed after payment.
