Instructions:
Carefully read the questions. The exam is divided into two parts. The first part is multiple choice and the second part are short answer questions.
For your answers to the multiple choice questions, you can write the question number and the letter (answer) in your exam submission, like this:
PDCV102 Contracts Law Assignment-Australia.
1.A
2.B
3.C
Please note that this is an example only.
You must answer every multiple choice question in Part A. Only select one multiple choice answer for each question. If you select more than one, you will be marked incorrect. No half marks will be awarded.
You only need to answer three of the questions in Part B. Answers must include proper referencing.Cases and legislation must be cited and quotes from other sources referenced. A bibliography is not required.
Answers should be typed using Times New Roman, Calibri or Arial in size 12 font with 1.5 line spacing.
You must clearly show the number of each question you are answering.
There must be no collusion or sharing answers with other students. Collusion is considered plagiarism.
Exam
Part A: Multiple Choice Questions (1 mark each)
Answer every question
1. The common law doctrine of privity of contract is that:
a) a contract is always private
b) only parties to a contract are entitled to be privy to its’ terms
c) only a party to the contract is entitled to the benefits of the contract and is bound by the obligations of the contract
d) only a party to a contract can take a benefit from a contract
2.A contract that is presumptively binding on a minor, includes:
a) a contract entered into by the minor’s parent
b) all contracts
c) a contract for the benefit of the minor
d) a contract financially advantageous to the minor
3.A third party will be covered by an exemption from liability clause provided:
a) the contract made it clear that third parties were intended to be protected
b) the third party performed services under the contract
c) the contracting party acted as the third party’s agent and had authority to contract on behalf of the third party
d)all of the above
PDCV102 Contracts Law Assignment-Australia.
4.An assignee of a contract can:
a) take the benefit of a contract
b) must perform the obligations under a contract
c) can enforce the contract
d) all of the above
5. A contract made with a mentally incapable person:
a) is always void
b) can only be set aside on the basis of incapacity by the mentally incapable person
c) is not binding
d)can only be set aside on the basis of incapacity by the capable party
6.In New South Wales, a person who is not an Australian citizen:
a) is incapable of entering into a valid contract
b) can only enter into those contracts permitted by law
c) has full contractual capacity
d) is excluded by law from entering into a contract
7. A person who has been convicted to death or has had a death sentence commuted to a life sentence in New South Wales:
a) has the same common law rights as any other person
b) is incapable of bringing a civil action in court
c) cannot be convicted of any other criminal offence
d) is unlikely to enter into contracts
8. A corporation has:
a) contractual capacity only if the contract is ratified by two directors
b) the same contractual capacity as a natural person
c) has more contractual capacity than a natural person
d) no contractual capacity in its’ own right
9. An undischarged bankrupt:
a) is incapable of entering into contracts by statute
b) has contractual capacity but must disclose their bankruptcy
c) can only enter into contracts with the consent of all creditors
d) is ‘civilly dead’ and has no common law rights
10. Married women:
a) can only enter into contracts with their father’s or husband’s consent
b) have no contractual capacity
c) have full contractual capacity
d) have full contractual capacity subject to ratification by their ‘responsible person’
11.To receive quantum meruit as a remedy, a plaintiff must show:
a) they have calculated the value of their loss or damage correctly
b) the defendant received a benefit and it would be unjust enrichment if the defendant was not required to pay a reasonable amount for it
c) that the defendant breached their obligations under the contract
d) that they have suffered a loss
12. Parol evidence is not admissible in court:
a) in any circumstances
b) except where evidence is required to resolve ambiguity
c) when only affidavit evidence is allowed
d) except where the evidence varies the written agreement
PDCV102 Contracts Law Assignment-Australia.
13.When determining whether a representation is a term of the contract, the court would apply:
a) an objective test
b) a subjective test
c) a ‘but for’ test of causation
d) a test on balance of probabilities
14. A collateral contract:
a) is unenforceable but the main contract is enforceable
b) is always implied by conduct of the parties
c) does not require consideration
d) arises when a represent or intends the promise to be legally binding and the other party relies on it to enter into the main contract
15. An essential contract term:
a) could be any term of the contract
b) is a term of critical importance to the promisee
c) must be strictly complied with
d) all of the above
Part B: Questions
Answer three of the following questions
Question One:
Emily and David recently bought a neglected farm. No one had lived in the farmhouse for many years and there was no electricity. After looking around the farm, they became concerned that there was a problem with the electricity connection. Emily and David asked the agent about it. The agent said to them: “You just have to connect the electricity when you move in.”
Emily and David still felt concerned and raised it with their conveyancer, who sought an additional special condition in the contract which said:
“The vendors confirm that electricity is connected and available to the property.”
The vendor’s conveyancer agreed to the inclusion of the above special condition. Emily and David proceeded to exchange contracts and six weeks later, settled their purchase.
After settlement, Emily and David contacted the electricity provider to connect the electricity. They were informed that the line, poles and transformer would all have to be upgraded before there would be any power to the farm. After speaking with a contractor, they were advised this would cost $50,000.Advise David and Emily of their legal position.
Question Two:
You are the conveyancer acting on behalf of Sandra, who is selling her property. Sandra contracted with a real estate agent, Matthew, to sell her property.
The Agency Agreement provides that Matthew had to use his best endeavours to sell the property for between $400,000 to $450,000 in three months. Provided that he did this, then he was entitled to 3% commission on the sale price of the property.
As soon as the property was on the market, Sandra began to feel pressured by Matthew to sell the property whenever purchasers made offers. With each offer, Matthew would become more impatient with her. He would call Sandra four or five times a day and tell her that she was lucky to get offers and would emphasise issues with the property that needed repair or updating.
The property was eventually sold for $445,000 after two months, but Sandra was left feeling disappointed with the process and that the property could have been sold for a better price, if Matthew had not acted the way he did in pressuring her.
Before settlement of the sale of the property, Sandra tells you that she doesn’t want to pay Matthew the whole commission because he doesn’t deserve it, due to his behaviour. Advise Sandra.
Question Three:
Anne parked her car in a car park outside a movie theatre. Although she saw a sign when she entered the car park, she only read the heading ‘Conditions of Parking.’ The rest of the sign was written in very small letters and Anne could not have read the rest of the sign unless she got out of the car.
There was nothing printed on her ticket for entry to the carpark except for the time of entry.
The Conditions of Parking contained a clause that said: ‘Drivers park at their own risk and assume all responsibility for securing their vehicle and valuables.’
When Anne returned to her car, she found that one of her car windows was smashed and her iPod and navigator were missing. Advise Anne about her prospects of making the car park owners or operators responsible for the damage and loss of her personal property.
PDCV102 Contracts Law Assignment-Australia.
Question Four:
A purchaser brings you a contract for a property they want to buy. They tell you that they intend to knock the house down and build a luxury two-storey house. Based on the contract, you advise that the property is 500 square metres in total area and is located about 75 metres from the ocean. Due to the proximity to the ocean, there is no building permitted higher than a single-storey house.The purchaser is surprised and shows you an advertising brochure, stating ‘Build your dream home!’ The purchaser wants to know whether the real estate agents can say this, particularly when the purchaser certainly can’t build their dream home.
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