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
