Chapter 3 - Terms of Contract

A statement or assurance that persuaded the other party to enter into a contract

• conditions

• term

• representation

• warranties

There are three types of misrepresentation - innocent, negligent and fraudulent

• True

• False

Akeem is a sales advisor for a second hand car. He claims that the car is "accident free" and never once involved in flood area. Nadeera bought the car and after a thorough inspection, it is known that the car has a flood mark on its door. Akeem is making what representation?

• Innocent Misrepresentation

• Negligent Misrepresentation

• Fraudulent Misrepresentation

It is sometimes difficult to decide in advance whether a term is a condition or a warranty. It is known as

• Recission

• Warranties

• Conditions

• Innominate term

When an independent party whether he thinks the omitted term is obviously something that the contracting parties would have included, it is known as

• Officious bystander test

• Efficacy test

• Express term

• Implied term

Sale of Goods Act

• 1989

• 1999

• 1957

• 1997

CPA means

• Customer Protection Act

• Counter Protection Act

• Customer Presentation Act

• Consumer Protection Act

Marsha bought a computer software and it has inaccuracies in advance bookings. After referring Hensem Technologies, the software still cannot be used. It is known under

• Section 17 - Sale by sample

• Section 16 (1) (a) - Fitness for Purpose

• Section 16 (1) (b) - Merchantable Quality

• Section 15 - Sale by description

Right to redress means

• A person's entitlement to compensation or other remedy

• A seller's guarantee that he has a good title to the product

• A person makes untrue statement, conceals a fact

• A court order forbidding or commanding the defendant to perform certain act

Warranty is a necessary element to have in a contract

• True

• False