Question 1

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

Accepted Answer

Exemption clauses are clauses in contrac

Question 2

Courts have generally held that an exemption clause will not excuse a fundamental breach.

Accepted Answer

A) True 
 B)False

Question 3

A breach can have the effect of terminating a contract. However, not every breach may discharge a contract.

Accepted Answer

A) True 
 B)False

Question 4

Courts have generally held that an exemption clause

Accepted Answer

A)  will exempt a party who seeks to rely on it from liability in all situations. 
B)  will not excuse a fundamental breach. 
C)  is acceptable in a unilateral contract. 
D)  is unacceptable in a bilateral contract. 
E)  can be relied upon against all breaches. 
A)  will exempt a party who seeks to rely on it from liability in all situations. 
B)  will not excuse a fundamental breach. 
C)  is acceptable in a unilateral contract. 
D)  is unacceptable in a bilateral contract. 
E)  can be relied upon against all breaches.

Question 5

A condition is

Accepted Answer

A)  a term of a contract that must be fulfilled by the promisee. 
B)  a contractual obligation that must happen before another can take place. 
C)  a contractual event that must take place before another can happen. 
D)  a fundamental event that must be fulfilled before another can happen. 
E)  an essential term of a contract. 
A)  a term of a contract that must be fulfilled by the promisee. 
B)  a contractual obligation that must happen before another can take place. 
C)  a contractual event that must take place before another can happen. 
D)  a fundamental event that must be fulfilled before another can happen. 
E)  an essential term of a contract.

Question 6

A clause that exempts a party from liability for failing to perform some or all of its contractual obligations is called

Accepted Answer

A)  a liability exempting clause. 
B)  a collateral clause. 
C)  an exemption clause. 
D)  a limitation clause. 
E)  an exempting clause. 
A)  a liability exempting clause. 
B)  a collateral clause. 
C)  an exemption clause. 
D)  a limitation clause. 
E)  an exempting clause.

Question 7

Explain the attitude of the courts towards the use of exemption clauses.

Accepted Answer

The courts generally frown on the use of

Question 8

Where the courts have been faced with an exemption clause that exempts a breach that is so serious that it defeats the whole purpose of the contract, the court, to prevent the party in breach from sheltering behind the exemption clause,

Accepted Answer

A)  interpreted the contract without the exemption clause. 
B)  have required that the party in breach pay a fine. 
C)  have awarded damages to the aggrieved party. 
D)  have classified the breach as a fundamental breach 
E)  have classified the breach as an anticipatory breach. 
A)  interpreted the contract without the exemption clause. 
B)  have required that the party in breach pay a fine. 
C)  have awarded damages to the aggrieved party. 
D)  have classified the breach as a fundamental breach 
E)  have classified the breach as an anticipatory breach.

Question 9

What is an express repudiation?

Accepted Answer

An express repudiation is a de

Question 10

Jack has a contract to deliver goods to Jim on June 2, 2003. On May 31, 2003, Jack calls Jim and advises him that he cannot deliver the goods on June 2, 2003. This is

Accepted Answer

A)  an early breach 
B)  an anticipatory breach. 
C)  an early termination. 
D)  an implied repudiation. 
E)  a rescission. 
A)  an early breach 
B)  an anticipatory breach. 
C)  an early termination. 
D)  an implied repudiation. 
E)  a rescission.

Exam 14: The Effect of Breach

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

Courts have generally held that an exemption clause will not excuse a fundamental breach.

A breach can have the effect of terminating a contract. However, not every breach may discharge a contract.

Courts have generally held that an exemption clause

A condition is

A clause that exempts a party from liability for failing to perform some or all of its contractual obligations is called

Explain the attitude of the courts towards the use of exemption clauses.

Where the courts have been faced with an exemption clause that exempts a breach that is so serious that it defeats the whole purpose of the contract, the court, to prevent the party in breach from sheltering behind the exemption clause,

What is an express repudiation?

Jack has a contract to deliver goods to Jim on June 2, 2003. On May 31, 2003, Jack calls Jim and advises him that he cannot deliver the goods on June 2, 2003. This is

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