Q8 Change, breach & termination Flashcards
Whose consent may be needed to a variation even if both parties agree it?
A.
A person who has been granted third party rights under the Contracts (Rights of Third Parties) Act 1999
B.
The Government
C.
The local builders’ merchant
D.
The previous owner of the property
A.
A person who has been granted third party rights under the Contracts (Rights of Third Parties) Act 1999
‘Novation’ means what?
A.
Assigning the benefit of a contract (but not the burden) to someone else
B.
Assigning the burden of a contract (but not the benefit) to someone else
C.
Creating a new contract (with your customer’s agreement) through which someone will take over contract performance for you
D.
Creating a new contract (without your customer’s agreement) through which someone will take over contract performance for you
C.
Creating a new contract (with your customer’s agreement) through which someone will take over contract performance for you
The Housing Grants, Construction & Regeneration Act 1996 only applies to:
A.
Construction contracts that are in writing
B.
Construction contracts whether or not they are in writing
C.
Construction contracts that are not in writing
D.
Construction contracts that are important
B.
Construction contracts whether or not they are in writing
What is the term used in contract law to describe change to the content of a contract after it comes into existence?
A.
Variation
B.
Renunciation
C.
Termination
D.
Rescission
A.
Variation
What is a ‘blue pencil clause’?
A.
A clause that invites a Judge to selectively void certain offending clauses, but to leave the rest of the contract operative
B.
A clause that invites a Judge to selectively void certain offending clauses, but to leave the rest of the contract inoperative
C.
A clause that invites a Judge to selectively avoid certain offending clauses, but to leave the rest of the contract inoperative
D.
A clause that invites a Judge to selectively void certain offending clauses, but to leave the rest of the contract inoperative
A.
A clause that invites a Judge to selectively void certain offending clauses, but to leave the rest of the contract operative
Which of the following is not a common area of uncertainty for which provision is made within construction contracts to allocate risk between the parties?
A.
Unknown ground conditions
B.
The risk of changes in currency values
C.
The risk of shortages or price increases in building materials
D.
The risk of alien invasion
D.
The risk of alien invasion
Blue Circle -v- Holland Dredging (1987) is an important case on the ‘limits of scaleability’. Why?
A.
A court decided that even if a contract has a clause entitling a client to add extra work to the contractor’s ‘package’ there are implicit limits to what can be added. Here increasing a dredging contract to include creation of an island was too big an increase in the scale of the work to fit within a standard clause requiring a contractor to accept extra work in the contract.
B.
A court decided that if a contract has a clause entitling a client to add extra work to the contractor’s ‘package’ there are no limits to what can be added. Here increasing a dredging contract to include creation of an island was not too big an increase in the scale of the work to fit within a standard clause requiring a contractor to accept extra work in the contract.
C.
A court decided that if a contract has a clause entitling a client to add extra work to the contractor’s ‘package’ there are implicit limits to what can be added. Here increasing a dredging contract to include creation of an island was not too big an increase in the scale of the work to fit within a standard clause requiring a contractor to accept extra work in the contract.
D.
A court decided that if a contract has a clause entitling a client to add extra work to the contractor’s ‘package’ there are no limits to what can be added. Here increasing a dredging contract to include creation of an island was too big an increase in the scale of the work to fit within a standard clause requiring a contractor to accept extra work in the contract.
A.
A court decided that even if a contract has a clause entitling a client to add extra work to the contractor’s ‘package’ there are implicit limits to what can be added. Here increasing a dredging contract to include creation of an island was too big an increase in the scale of the work to fit within a standard clause requiring a contractor to accept extra work in the contract.
If a contractor sub-contracts performance of part of the works to a sub-contractor he will
A.
Still be liable under the main contract for successful performance of those sub-contracted works unless the year in which the works are being undertaken is a leap year
B.
Not be liable under the main contract for successful performance of those sub-contracted works
C.
Still be liable under the main contract for successful performance of those sub-contracted works
D.
Not be liable under the main contract for successful performance of those sub-contracted works unless the year in which the works are being undertaken is a leap year
C.
Still be liable under the main contract for successful performance of those sub-contracted works
What happened in Linden Gardens -v- Lanesta Sludge (1994) ?
A.
A purported assignment of the benefit of a contract was made by one client to its replacement. The assignment was ineffective because the contract in question required the contractor’s consent to any assignment. No consent had been obtained. The ‘new’ client tried to sue for damages due to contractor default but was unable to show a cause of action because no rights had in fact been validly assigned to it. The old client was unable to sue because it hadn’t suffered any loss. The court decided that the old client was an implied trustee of the contractual rights that they had tried unsuccessfully to assign to the new client. Therefore the new client had beneficial ownership fo those rights in equity, whilst legal ownership of they had stayed (stranded) with the original client. The old client could thus sue the contractor on behalf of the new client and their losses.
B.
A purported assignment of the burden of a contract was made by one client to its replacement. The assignment was ineffective because the contract in question required the contractor’s consent to any assignment. No consent had been obtained. The ‘new’ client tried to sue for damages due to contractor default but was unable to show a cause of action because no rights had in fact been validly assigned to it. The old client was unable to sue because it hadn’t suffered any loss. The court decided that the old client was an implied trustee of the contractual rights that they had tried unsuccessfully to assign to the new client. Therefore the new client had beneficial ownership fo those rights in equity, whilst legal ownership of they had stayed (stranded) with the original client. The old client could thus sue the contractor on behalf of the new client and their losses.
C.
A purported assignment of the benefit of a contract was made by one contractor to its replacement. The assignment was ineffective because the contract in question required the client’s consent to any assignment. No consent had been obtained. The ‘new’ contractor tried to sue for damages due to client default but was unable to show a cause of action because no rights had in fact been validly assigned to it. The old contractor was unable to sue because it hadn’t suffered any loss. The court decided that the old contractor was an implied trustee of the contractual rights that they had tried unsuccessfully to assign to the new contractor. Therefore the new contractor had beneficial ownership fo those rights in equity, whilst legal ownership of they had stayed (stranded) with the original contractor. The old contractor could thus sue the client on behalf of the new contractor and their losses.
D.
A purported assignment of the burden of a contract was made by one contractor to its replacement. The assignment was ineffective because the contract in question required the client’s consent to any assignment. No consent had been obtained. The ‘new’ contractor tried to sue for damages due to client default but was unable to show a cause of action because no rights had in fact been validly assigned to it. The old contractor was unable to sue because it hadn’t suffered any loss. The court decided that the old contractor was an implied trustee of the contractual rights that they had tried unsuccessfully to assign to the new contractor. Therefore the new contractor had beneficial ownership fo those rights in equity, whilst legal ownership of they had stayed (stranded) with the original contractor. The old contractor could thus sue the client on behalf of the new contractor and their losses.
A.
A purported assignment of the benefit of a contract was made by one client to its replacement. The assignment was ineffective because the contract in question required the contractor’s consent to any assignment. No consent had been obtained. The ‘new’ client tried to sue for damages due to contractor default but was unable to show a cause of action because no rights had in fact been validly assigned to it. The old client was unable to sue because it hadn’t suffered any loss. The court decided that the old client was an implied trustee of the contractual rights that they had tried unsuccessfully to assign to the new client. Therefore the new client had beneficial ownership fo those rights in equity, whilst legal ownership of they had stayed (stranded) with the original client. The old client could thus sue the contractor on behalf of the new client and their losses.
In which of the following circumstances is quantum meruit available?
A.
If a contract’s price mechanism doesn’t reflect market conditions
B.
If a contract contains no price provisions
C.
If a contract has been abandoned part way through and the contractor wants to claim payment for the work he has done
D.
If the contract works have been done to such a high standard that they deserve a prize payment for exceptional workmanship
B.
If a contract contains no price provisions
Which of the following is not a provision of the Housing Grants, Construction & Regeneration Act 1996 (as amended)?
A.
Construction contracts of 45 days or greater duration must have provision for ‘stage payments’
B.
‘Pay when certified’ and ‘pay when paid’ clauses are not allowed in construction contracts
C.
Construction contracts must provide rights for contractors to suspend work where they are not paid
D.
Unwritten Construction Contracts made before 1 October 2011 are covered by the Act’s provisions
D.
Unwritten Construction Contracts made before 1 October 2011 are covered by the Act’s provisions
Which of the following price adjustments is not likely to be found in a ‘fixed price’ contract?
A.
Indexation
B.
Change of law
C.
Taxation
D.
Remeasurement
D.
Remeasurement
‘remeasurement’ concerns assessing the actual cost of the project and implies that the contractor will be entitled to be paid a figure calculated as a result of that remeasurement. That is not consistent with a fixed price contract.
‘Liquidated damages’ are what?
A.
Permissible, if a genuine pre-estimate of loss
B.
Never allowed
C.
Always allowed
D.
Permissible, if a penalty rather than a pre-estimate of loss
A.
Permissible, if a genuine pre-estimate of loss
‘Making time of the essence’ means
A.
Doing something really quickly
B.
Notifying the other party to the contract that you are now going to insist upon strict performance of applicable contractual timescales, and you will regard any failure to do so as a material breach of contract giving grounds of termination.
C.
Notifying the other party to the contract that you are not going to insist upon strict performance of applicable contractual timescales, and you will regard any failure to do so as a material breach of contract giving grounds of termination.
D.
Doing something really really quickly
B.
Notifying the other party to the contract that you are now going to insist upon strict performance of applicable contractual timescales, and you will regard any failure to do so as a material breach of contract giving grounds of termination.
Which of the following is a promise given by a bank or other financial institution (for a fee) which will pay up a specified amount if a named person fails to comply with their contractual obligations?
A.
Brooke Bond
B.
Performance Bond
C.
James Bond
D.
Basildon Bond
B.
Performance Bond
