Two short questions and 15 multiple choice questions
1.Ram asks Simrat to deliver his car to a parking station. These are his only institutions. When Simrat arrives with the car, no one can be found. The parking station is locked. If Simrat leaves the car, it could be damaged, stolen or towed away. Simrat decides to drive the car to his home for the night. He is authorised to do this because:
a)An agency arrangement has been created by necessity.
b)An agency arrangement has been created by ratification.
c)An agency arrangement has been created by legal presumption.
d)An agency arrangement has been created by agreement.
2.Rahul and Jaipal know each other because they are both member of a cricket club. Rahul said to Jaipal, ‘Buy my house, or I will kill your daughter’. Jaipal agrees to buy the house. Which of the following is most likely to have impacted this contract?
3.Partnership law in Australia is regulated by:
a)The Partnership Acts in the various States and Territories.
b)The Partnership Act 1901 (Cth);
c)The Common Law;
d)The Partnership Act 1892 (NSW);
4.The sovereignty of Parliament refers to:
a)How, historically, Parliament has replaced the British Sovereign as the head of Australia.
b)The fact that Parliament rules the country and makes all the laws of Australia;
c)The fact that Parliamentary law (statute) will always override court-made law;
d)The fact that only Parliament can interpret the law of Australia.
5.Formal contracts have the following characteristics:
a)There need not be consideration;
b)Less time than simple contracts to begin legal action;
c)A standard form available from the post office.
d)A requirement of consideration;
6.‘The doctrine of precedent underpins the Australia common law system’:
a)This statement is false;
b)This statement is true only since 1901;
c)This statement is true only before 1901;
d)This statement is true.
7.Which is not an implied term:
a)Those terms read into a contract as often parties do not specify all their terms;
b)Terms derived from the previous conduct of the parties.
c)Those terms inserted after the contract is made;
d)Terms not expressly stated and may be implied by fact, by the courts or by statute;
8.Diana is 17 years of age but tells Harwinder that she is 20 years of age. Harwinder sells his business to Diana. Diana signs a contract. Is there an issue of capacity?
a)Yes. Diana is not 21 years of age;
b)No. Diana is unable to enter into any contract at all legally.
c)No. it depends on what state the young person lives;
d)Yes. Diana is under 18 years old;
9.The different types of misrepresentations recognised by the law include:
a)Mutual, common and unilateral;
b)Negligent, fraudulent and mutual.
c)Fraudulent, innocent and negligent;
d)Innocent, negligent and mutual;
10.To form a contract, consideration:
a)Must always move from the promisee;
b)Must always move from the promisor to a third party;
c)Does not need to move from either party.
d)Must always move from the promisee, except where there are joint promisors;
11.Pure economic loss:
a)Is only available in NSW;
b)Is available in Australia since 1976 but in narrow circumstances such as knowledge by the defendant and special vulnerability.
c)Is not an action in the law of torts;
d)Was established in the case of Donoghue v Stevenson  AC 562;
12.The common law contractual remedy of damages requires:
a)Causation and frustration;
c)Causation and a test for remoteness;
d)Specific performance and rescission.
13.An actual breach is:
a)When the doctrine of frustration is successful.
b)Another phrase for anticipatory breach;
c)When a party to the contract does not perform their obligations when they are due;
d)Involved when a party may not be able to perform their obligations when the time comes to do so;
14.In the case of contract tainted by illegality by statute, where the parties are not equally at fault the court will:
a)Determine the remedy by considering whether the contract is illegal as formed or illegal as performed.
b)Let the loss lie where it falls.
c)Usually deprive the wrongdoer of the benefits of the contract, but not the innocent party.
d)Allow the innocent party to recover any money or property transferred under the contract where the wrongdoer is owed a fiduciary duty.
15.Ernie promised Xavier that if Xavier would work for him, he (Ernie) would pay Pamela a sum of money. Xavier did the work. But, Ernie did not pay Pamela. Pamela sued Ernie on the promise which was made for her benefit as part of the contract Ernie and Xavier. Which is the most likely result?
a)Pamela succeeded against Ernie and was awarded damages
b)Pamela did not succeed against Ernie and was not awarded damages.
c)Ernie did not succeed against Xavier and was not awarded damages.
d)Pamela succeeded against Xavier and was awarded damages.
16.Sheree runs Spicy Foods imports, the leading spice importer in Fremantle and the surrounding area. She decides to sell the business and Abigail, the local business sales agent, introduces a prospective buyer, Hellendra. When negotiating the contract for the sale of the business, the issue of the restraint clause arises. Hellendra requests that the clause read that Sheree will not trade in a similar business for five (5) years within a 25-kilometre radius of the business premises in Freemantle.Advise Sheree of the legality of the restraint of trade clause. (AGLC References)
17.Under what circumstances can an innocent party obtain a remedy for misrepresentation? (AGLC References)