Contractual terms and conditions MCQs

By: Prof. Dr. Fazal Rehman | Last updated: July 20, 2024

1. Contractual Terms

Question 1: Which of the following is typically considered a “material” term in a contract? A) The color of the product B) The delivery date C) The company’s logo D) The office decor Answer: B) The delivery date Question 2: Which type of term in a contract is essential to the contract’s formation and can lead to a breach if not fulfilled? A) Implied term B) Condition C) Warranty D) Representation Answer: B) Condition

2. Express and Implied Terms

Question 1: Which of the following refers to terms that are specifically stated in the contract document? A) Implied terms B) Express terms C) Unilateral terms D) Standard terms Answer: B) Express terms Question 2: Implied terms in a contract are: A) Terms that are stated explicitly in writing B) Terms that are inferred by the conduct of the parties or by law C) Terms that are only verbal agreements D) Terms that are not legally binding Answer: B) Terms that are inferred by the conduct of the parties or by law

3. Terms vs. Representations

Question 1: A statement made by a party during contract negotiations that influences the other party to enter into the contract but is not included as a term of the contract is called a: A) Condition B) Representation C) Warranty D) Covenant Answer: B) Representation Question 2: Which of the following best describes a “warranty” in a contract? A) A promise that goes to the root of the contract B) A promise that is ancillary to the main terms of the contract C) A statement made to induce the other party to enter into the contract D) An implied term that the law assumes Answer: B) A promise that is ancillary to the main terms of the contract

4. Breach of Contract

Question 1: If a party fails to fulfill a material term of the contract, this is considered: A) A minor breach B) An anticipatory breach C) A fundamental breach D) A mutual mistake Answer: C) A fundamental breach Question 2: Which of the following remedies is typically available for a breach of contract? A) Specific performance B) Reformation C) Injunction D) All of the above Answer: D) All of the above

5. Exclusion Clauses

Question 1: What is an exclusion clause in a contract? A) A clause that excludes certain terms from the contract B) A clause that limits or excludes liability for certain types of loss or damage C) A clause that requires one party to make periodic payments D) A clause that specifies the contract’s duration Answer: B) A clause that limits or excludes liability for certain types of loss or damage Question 2: For an exclusion clause to be enforceable, it generally must be: A) Written in clear and unambiguous language B) Verbally agreed upon C) Hidden in a lengthy document D) Applied only to one party Answer: A) Written in clear and unambiguous language
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