Question No. 1

Which of the following best describes an 'innominate term' in a contract?

AA term that is either a warranty or a condition, to be decided by the court in the event of a dispute

BA vital term going to the root of a contract whose breach entitles the innocent party to terminate the contract and/or claim damages

CA term that is subsidiary to the main purpose of the contract whose breach entitles the innocent party only to claim damages

DA term that is extra to the usual terms of contract used by either the buyer or the seller for a specific purpose in the contract.

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Correct Answer: B

Question No. 2

Which of the following best describes the nature of 'damages' (in the legal sense)?

AA supplier being forced by the buyer to pay for the replacement of goods that are found, upon receipt, to be damaged

BThe supplier being forced by the court to reimburse the buyer for costs incurred due to unsatisfactory performance of a contract by the supplier

CThe buyer invoking a contract clause that enables them to buy the goods from another supplier in the event of late delivery by the original supplier

DA supplier being forced by a court to perform a contract in the manner and time stipulated by the buyer in the original purchase order.

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Correct Answer: B

Question No. 3

Which of the following best defines the term 'variable pricing'?

AA price which, though fixed at the outset, can be changed by agreement between buyer and seller

BA price that is based on the sellers costs with the addition of a profit margin on those costs

CA price that can fluctuate over the length of the contract and which is usually monitored by using indices

DA price that is subject to discount at the end of its completion based on the aggregate quantity of items purchased.

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Correct Answer: B

Question No. 4

Which of the following best describes 'consideration' under English law?

AThe seller thinking about the requirements of the buyer and fulfilling them

BThe buyer has had adequate time to consider the seller's offer

CSomething of value given to the seller by the buyer in exchange for goods or services

DBuyer and seller agreeing upon terms and conditions that will look after the interests of both parties.

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Correct Answer: A

Question No. 5

Which of the following would constitute an 'invitation to treat' under English law?

AA purchase order

BAn acknowledgement of order

CA supplier's catalogue

DA supplier's quotation.

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Correct Answer: B

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