HL:Esso are engaged in business, and are supplying these coins in order to promote the sale of their petrol. But it does not necessarily follow that there was any intention on their part they should enter legally binding contracts with respect to the coins. Nor is there any reason to impute to the motorist an intention to enter into a legally binding contract for the supply of a coin.
If it were found that Esso, the dealer, and the
customer intended to create a contract, it would seem to preclude the possibility of any dealer ever offering a free gift, however negligible the value. A common intention to enter legal relations would be found more easily if the item were something of value to the purchaser. But here the coins were of little intrinsic value. If there were any contract relating to the coins, the consideration for it would be not the payment of money, but the entry into a contract to buy petrol.
minority
view: , Esso clearly anticipated that they would have value to their customers, otherwise the promotion would not be worthwhile. What sort of transaction was entered? It appears to be a collateral contract, the consideration for which was entering the contract for the purchase of the petrol. Also, offers for free gifts should be enforceable
CA: The principle to be deduced from the cases is that if there is an essential term which has yet to be agreed and there is no express or implied provision for its solution, the result in point of law is that there is no binding contract. In seeing whether there is an implied provision for its solution, however, there is a difference between an arrangement which is wholly executory on both sides, and one which has been executed on one side or the other In the ordinary way, if there is an arrangement to supply goods at a price "to be agreed" or to perform services on terms "to be agreed" then although while the matter is still executory, there may be no binding contract, nevertheless, if it is executed on one side, that is if the one does his part without having come to an agreement as to the price or the terms then the law will say that there is necessarily implied from the conduct of the parties, a contract that, in default of agreement, a reasonable sum is to be paid.'
misrepresenation and fraud: Hedley Byrne & Co Ltd v Heller & Partners Ltd
(1964),
Byrne wanted to check their financial position, and creditworthiness, and subsequently asked their bank, National Provincial Bank, to get a report from Easipower's bank, Heller & Partners Ltd., who replied in a letter that was headed,
"without responsibility on the part of this bank"
It said that Easipower was,
"considered good for its ordinary business engagements".
The letter was sent for free. Easipower went into liquidation and Hedley Byrne lost £17,000 on
contracts.
Accordingly, if a specific thing has been sold, with a warranty of its quality, under such circumstances that the property passes by the sale, the vendee having thus benefited by the partial execution of the contract, and become the proprietor of the thing sold, cannot treat the failure of the warranty as a condition broken (unless there is a special stipulation to that effect in the contract; . . . ) but must have recourse to an action for damages in respect of the breach of warranty. But in cases where the thing sold is not specific, and the property has not passed by the sale, the vendee may refuse to receive the thing proffered to him in performance of the contract, on the ground that it does not correspond with the descriptive statement, or in other words, that the condition expressed in the contract has not been performed.
The guidelines for distinguishing between terms and representations ____________.
A. are intended to determine which party is at fault.
B. may result in conflicting indications and hence, it is important to consider all relevant facts of the case.
C. are used to determine if the maker of a statement has special knowledge.
D. must be applied rigidly so that there is no confusion over the interpretation.
C
Which of the following best describes terms and representations?
A. Terms and representations are similar because their breach results in similar legal effects.
B. The test for distinguishing between terms and representations is the business efficacy test.
C. Terms are binding on parties whereas representations are not binding.
D. Terms and representations are similar because they can be oral or written.
D
The case of RDC Concrete Pte Ltd v Sato Kogyo (S) Pte Ltd & Another Appeal
(2007) can be said to have lessened the significance of the traditional categorization between a condition and a warranty because ____________.
A. the court held that if a breach of warranty resulted in serious consequences, then that breach could entitle the innocent party to discharge a contract.
B. the court opined that it was more important to focus on the parties' actions, rather than terminology.
C. the court held that in the event of a breach of condition, the innocent party could no longer discharge the contract.
D. the court noted that all terms in a contract are equally important.
A
In general, which of the following criteria must be satisfied in order to sever illegal parts of the contract?
I The promises in the contract are severable in
nature.
II It is possible to sever the void part by deleting the offending words without redrafting the clause or the contract.
III The severance will not change the basic nature of the contract.
IV The severance will not breach the Unfair Contract Terms Act of Singapore.
A. I, II, III and IV
B. I, II and III
C. I and II
D. I and III
B
If the statement was originally made orally and then subsequently reduced into writing, it is likely to be a term of the contract. Which of the following best describes the rationale for this guideline?
A. Where there is a written contract, all the terms of that contract are presumed to be contained within the written document.
B. The maker of the statement must be placing special emphasis on the statement if he puts it down in writing.
C. A statement must be important enough to be a term if it is stated twice (once, orally and subsequently, in writing).
D. The oral statement can be amended to the parties' satisfaction when it is being reduced into writing.
A
What are the remedies available to an innocent party if there has been a breach of a condition?
I. Option to affirm the contract
II. Option to claim damages
III. Option to discharge the contract
IV. Option to sue for misrepresentation
A. III and IV
B. I and II
C. I, III and IV
D. I, II and III
D
Which of the following will render an exemption clause invalid or unenforceable?
A. The parties having equal bargaining position.
B. The exemption clause being drafted in a broad manner which covers the damage suffered by the party against whom the exemption clause is being used.
C. A notice containing the exemption clause which is placed at a prominent location.
D. The exemption clause excluding liability for personal injury resulting from negligence on the part of the party seeking to rely on it.
D
What was a key objective in introducing Sections 35 and 36 of the Civil Law Act in 2009?
A. To protect young people from being sued.
B. To support an entrepreneurial society where young people have contractual capacity to start and conduct a business.
C. To ensure every contract that is formed in Singapore is legally binding and enforceable.
D. To protect young people from entering into contracts as they may not fully understand the consequences of their actions.
B
Based on the main purpose rule, there is a presumption that the parties do not intend the exemption clause to defeat the main purpose of the contract. Which of the following best illustrates this presumption?
A. Where the contract is for the repair of a washing machine, the exemption clause will not protect the repairman if the repairs were not carried out with professional expertise.
B. Where the contract is for the enrolment in a language course, the exemption clause will not protect the school if the student is unable to pass the tests.
C. Where the contract is for the sale of a car, the exemption clause will not protect the seller if he delivers a truck instead.
D. Where the contract is for the sale of 10 kilogrammes of potatoes, the exemption clause will not protect the seller if he delivers 9.5 kilogrammes of potatoes.
C
A common feature among the vitiating factors is that ____________.
A. there are strict rules under common law as to their interpretation.
B. none of the vitiating factors relates to one party exercising unacceptable pressure over the other.
C. each vitiating factor, in some way, prevents a contract from being fully formed and discharged.
D. the law seeks to ensure that the weaker party does not benefit from being overprotected.
B
A common feature among the vitiating factors is that ____________.
A. there are strict rules under common law as to their interpretation.
B. none of the vitiating factors relates to one party exercising unacceptable pressure over the other.
C. each vitiating factor, in some way, prevents a contract from being fully formed and discharged.
D. the law seeks to ensure that the weaker party does not benefit from being overprotected.
B
Which of the following best describes an exemption clause?
A. It is a condition that allows the parties to exclude the application of Singapore law.
B. It is also known as a restraint of trade clause.
C. It is a clause in the contract which seeks to exclude the liability of the party relying on the clause.
D. It is a term that seeks to limit the liability of a party relying on it to a sum specified in the contract.
C
Which of the following best describes the factors which must be evaluated to determine whether reasonably sufficient notice of an exemption clause was given?
A. The lack of a previous course of dealing, the inclusion of the clause in the contract and the parties' signature beside the clause.
B. Whether the notice is handwritten or typewritten.
C. The identities of the parties, the dispute resolution clause of the contract and the subject matter of the contract.
D. The location of the notice, the time of giving the notice and the steps taken to bring the notice to the attention of the other party.
D
At common law, which of the following constitutes criteria which a restraint of trade clause must fulfill in order to be valid?
I The clause must protect a legitimate interest of the party imposing the clause.
II The clause must protect the business by minimizing competition.
III The clause must be reasonable in duration.
IV The clause must not
be contrary to public interest.
A. III and IV
B. I, II, III
C. II and IV
D. I, III, IV
D
Which of the following are examples of illegal contracts?
I Contracts which benefit a foreign enemy.
II Contracts which are made with the intention of deceiving another party.
III Contracts relating to wagering and gaming, in general.
IV Contracts which are used to prevent a person
from competing with another party, in general.
A. I, II and III
B. II and III
C. I and II
D. I, II, III and IV
D
The law has developed several rules which attempt to balance the interests of the minor and the other party. These rules are found in ____________.
I Sale of Goods Act
II Common law
III Minors' Contracts Act
IV Application of English Law Act
A. I and III
B. I, II, III and IV
C. I and II
D. I, II and III
A
Which of the following is/are element(s) of misrepresentation?
I It is a false statement of fact.
II The other party relied on the false statement.
III The false statement induced the other party to enter into the contract.
IV The other party who relied on the false statement did not suffer any loss.
A. II and III
B. I and II
C. I, II and III
D. I, II, III and IV
C
Why is it important to distinguish between puffs and terms?
A. A written contract must state clearly which clauses are puffs and which are terms.
B. Breaching terms will result in less serious consequences; hence, the parties may feel more comfortable breaching a term instead of a puff.
C. Breach of puffs does not result in any legal effect whereas a breach of term results in serious legal consequences.
D. Before a contract is signed, it is essential that the parties make many statements that are puffs so that they can induce each other to enter into a contract.
C
One of the objectives of the Unfair Contract Terms Act of Singapore is to ____________.
A. allow parties to exclude liability for causing personal injury.
B. provide parties with alternative dispute mechanisms in the event of a dispute over the fairness of a clause.
C. ensure that Singapore laws relating to contracts are aligned with that of international best practices.
D. ensure that only reasonable exemption clauses can be enforced.
D
A voidable contract involving minors is ____________.
A. a contract which is neither valid nor enforceable against the minor unless he ratifies it after he attains majority.
B. a contract which relates to necessaries for minors.
C. a contract which binds the other party but the minor is entitled to repudiate the contract at any time during his infancy or within a reasonable time after he attains majority.
D. a contract which either the minor or the other party is entitled to repudiate the contract at any time before the minor attains majority.
C
In some relationships, if undue influence is alleged, the law will presume it exists unless proven otherwise. Which of the following relationships falls into this group?
A. Husband and wife.
B. Between two good friends.
C. Solicitor and client.
D. Vendor and purchaser.
A
80/100
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