Short Answer Questions

Question 1

When does Frustration occur?

Answer 1

Frustration occurs when an unforeseen event makes the performance of the contract impossible or radically different from what was agreed upon.

Question 2

When does a Mistake Occur?

Answer 2

When there is a serious ambiguity as to the terms of the contract or the parties contractual assumptions. There is a lack of clarity about what is meant by the contract

Question 3

3 types of mistake

Answer 3

Unilateral
Common
Mutual

Question 4

Unilateral

Answer 4

one party was influenced into the contract through a mistake and the other party knew of it

Question 5

Common

Answer 5

All parties were influenced into the mistake

Question 6

Mutual

Answer 6

All parties were influenced but by different mistakes

Question 7

What is an Exclusion clause?

Answer 7

A term of a contract that tries to limit or exclude the liabilities of one party for certain breaches of the contract

Question 8

What is important for an exclusion Clause to be valid?

Answer 8

Must be apart of the contract and must be brought to the attention of the other party before or at the time they enter into the contract