Quiz 1-4

1. Sources of law: sources of law in Australia do not include repealed statutes. Includes: 1.
Consolidating statutes, 2. judge-made law, and 3. equity.

2. Which are some of the main features of the Electronic Transactions Act 1999 (Cth): are
the validity of electronic transactions, recognition of writing by electronic means, and
recognition of retaining information in electronic form.

3. The doctrine of precedent: With respect to a case being decided under the appellate
jurisdiction of the Country Court of Victory, a decision of the appellate division of the
District Court of New South Wales on the same Commonwealth legislation is persuasive.

4. Extrinsic Materials: Which of the following is NOT an example of an extrinsic source of

material? The internet. An extrinsic source: 1. Law reform commission reports, 2.
Parliamentary Committee reports, and 3. Parliamentary Debates.

5. Simon and Stella, both of full legal capacity, agree to go on a date. Stella is to pay for the
dinner, but she is running late and does not meet Simon at all. Simon is embarrassed and
angry and calls Stella the next day to threaten to sue her for his taxi fares and dinner
expenses. Will Simon succeed in his claim? No, because Simon and Stella did not intend
the agreement to create legally enforceable obligations.

6. Which of the following statements about consideration is correct? Consideration need

not be adequate.

7. The rule of law: Which of the following concepts is closely related to the rule of law? The
due process. Not closely related: 1. Representative government, 2. a responsible
government, and 3. separation of powers.

8. In Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd [[2016]] HCA 26 why did the
High Court disagree with the decision of the Victorian Court of Appeal in finding there
was no case for promissory estoppel:
a) The plaintiff could not establish that the statement that it would be “looked after at
renewal time” was capable of conveying to a reasonable person that it was a genuine
offer of a further lease, and

b) There was a need for certainty as to what the parties had agreed on at the end of the
negotiations to find a claim for estoppel.

9. Delegated legislation: Which of the following is not correct? Delegated legislation can
only be made by Government Ministers. Correct: 1. Delegated legislation is subordinate
legislation, 2. is made under the authority of an Act of Parliament, and 3. often contains
more detailed rules than those of the associated Act.

10. Which of the following is not a way in which an offer can be terminated? Revocation
after acceptance has been mailed where the postal rule applies. True: Lapse,
revocation before acceptance, or lapse where no time was stipulated.

11. Section 51 powers: Which of the following is not an area that the Commonwealth
Parliament has the power to legislate on under s51 of the Commonwealth constitution?
Education. Has power over 1. bankruptcy and insolvency, 2. foreign corporations, and 3.
banking and insurance.

12. Interpretation-extrinsic materials: In interpretation, extrinsic materials are allowed to be

referred to by a court.

13. Ratio decidendi: The ratio decidendi of a case is the reason given for deciding the case.

14. Illusory terms in a contract are problematic since they are vague or ambiguous so they
fail to create a legal obligation.

15. Native title: Native title was first recognised in the case of Mabo v State of Queensland
(No 2)(1992) 175 CLR 1.
16. Changing the Constitution: Section 128 of the Commonwealth Constitution provides that
the Constitution can be changed by referendum that requires a “yes” vote by the
majority of voters and in a majority of States.

17. The main legal issue in Felthouse v Bindley (1862) 11CB (NS) 869 was generally silence/
lack of action does not constitute acceptance of an offer.

18. Which of the following is not a class of persons regarded by the law as wholly or partly
incapable of entering into legally binding contracts? Women.

19. Reporting obligations: What is a binding precedent? A decision of a court that brings
judges in a lower court in the same court hierarchy.

20. Separation of powers: Which of the following is not one of the three branches of the
Commonwealth government in Australia: The Governor. The three branches are 1. the
executive, 2. the judiciary, and 3. the legislative.

21. Criminal offences: Which of the following is incorrect with respect to criminal offences?
The committal hearing is held before most summary offense matters. Correct. Criminal
offenses are indictable offenses are generally the more serious offenses, summary
offenses are determined by a magistrate without a jury, and the prosecution must prove
its case beyond a reasonable doubt.

22. Australian Constitution: Which Act established the federal legal and political system and
converted the separate colonies into states? Commonwealth of Australia Constitution
Act 1900.

23. Public and private law: Which of the following is not classified as private law? Criminal
law (public law). Private law: 1. The law of contract, 2. the law of property, and 3. the
corporations law.

24. Farah agreed to take care of an elderly woman Marge and in return was provided with a
house to live in that was promised by Marge to be Farah’s after she died. Farah cared for
the woman for 23 years, but upon Marge’s death, Farah discovered that their oral
 agreement was never put into writing. The woman’s son moved into the house and
Farah made a claim to the house. The court is likely to apply the doctrine of part
performance.

25. Andy promises Ellie $100 on her 21st birthday. If this promise was contained in a simple
contract, the legal position is that such a promise is never binding as it must have
consideration supplied by Ellie.

26. The High Court’s decision in Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387
is that they extended the doctrine of equitable estoppels such that it applies even
where there is no pre-existing contractual relationship between the parties.

27. Which of the following statements about acceptance is false? Acceptance can be in any
manner chosen by the offeree. True: 1. Acceptance can be by telephone or email or
conduct, 2. acceptance must be unconditional, and 3. acceptance can only be made by
the person(s) to whom the offer was made.

28. Section 15AA of the Acts Interpretation Act 1901 (Cth) provides that the purpose of the
statute or its object should be preferred method of determining the statute’s meaning.

29. Separation of powers: Which of the following statements about separation of powers in
Australia is correct? The executive is the body that administers the law.

30. Equitable remedies: Which of the following is incorrect? Equitable remedies must be
awarded in a separate proceeding to common law remedies such as damages. Correct:
Equitable remedies are discretionary, and include specific performance, and injunctions.

31. Civil and criminal law: Which of the following is not correct with respect to civil law? The
document filed by the defendant is called a writ. True: 1. The typical purpose of a civil
action is to obtain damages, 2. under civil law, one person may sue another who has
committed a wrongful act, and 3. interrogatories and discovery are procedures that are
available in civil proceedings.
32. Federal system: Which of the following statements is correct? Australia is a federal
system, with two legal systems for each citizen.

33. A contract dividing the proceeds of a cocaine importing venture that has no technical
defects and that is not overly harsh/unfair to either party is void.

34. If one party has threatened another party to enter into a contract, the element that is
missing is real/genuine consent.

35. Substantive and procedural law: Substantive law refers to actual rights under the law.

36. The Age of Majority Act 1977 (Vic) reduced the age for contractual capacity of a minor to
18.

37. Delegated legislation: An example of delegated legislation is the Corporations

Regulations 2001 (Cth).

38. In which of the following types of agreements is there a presumption that parties intend
to be legally bound? A partnership between husband and wife.

39. Court hierarchy: Local or Magistrates Courts are the lowest courts in the state hierarchy.

40. Which of the following statements about bilateral and unilateral contracts is not correct?
A unilateral contract does not require consideration but simply a promise to perform
an act if sufficient. True: 1. More than 1 party is required for both bilateral and unilateral
contracts, 2. both parties are obliged to perform their promises in a bilateral contract,
and 3. while only 1 of the parties is obligated to perform an action in a unilateral
contract.

41. Criminal proceedings: An indictable offense is a more serious criminal offense.

42. Law reports: Where are decisions of the High Court of Australia found only online? In
the Commonwealth Law Report.
43. Which of the following circumstances are likely to affect the consent of one or both
parties to a contract? Mistakes and duress and undue influence

44. Reception of English law in Australia: Which Latin phrase explained the rationale for
applying English laws to the new Colony of New South Wales? Terra Nullius.

45. With respect to revocation, which of the following statements is not correct? The offeror
must personally communicate the revocation to the offeree. True: 1. Revocation need
not be in words, 2. the offeree may accept the offer until such time as they become
aware of the revocation, and 3. where an offer has been made to the world at large, the
revocation does not need to be seen by everyone in order to be effective.

46. Sources of law: the two main types of law in Australia are statute law and
judgment-made law.

47. In Ashton v Pratt (2015) NSWCA 12, what was the main reason for the court deciding
that there was no intention to create a legally binding contract? The verbal language of
the agreement greatly lacked detail from either party and did not indicate definite
obligations.

48. Simone advertises a car for $4,000. John responds to the advertisement and asks
whether Simone will take $3,000. Simon says “no”, but that she will hold the offer open
for a week. The next day, she sells it to Samantha. Which of the following statements is
correct? Simone does not have to hold the offer open since no consideration was
given.

49. Which of the following is not one of Brennan J’s six criteria for estoppel from Waltons
Stores (Interstate) Ltd v Maher (1988) 164 CLR 387? The promissory knew or was
reckless as to whether the promisee intended to act in that. 3 of 6 criteria: The
promissory induced an assumption, the promisee acted in reliance on that assumption,
and the promisee will suffer a material loss if the assumption is not fulfilled.

50. Court hierarchy: The highest court in Australia is the High Court of Australia.
51. Interpretation: Which of the following is not correct? With respect to interpretation, the
main approach used by courts is the purposive approach. Correct: The main approach
used by courts is the literal approach, the requirement that the natural and ordinary
meaning be given to words, and the courts are free to exercise judicial discretion.

52. Which of the following no longer regulates business or commercial law? The Trade
Practices Act 1974 (Cth). Regulates: 1. Competition and Consumer Act 2010 (Cth), 2.
Corporations Act 2001 (Cth), and 3. the law of contract.

53. Jack was subpoenaed to give evidence on Rods behalf. Jack claimed Rod promised him
$2000 to give evidence. Would Jack recover that money? No, since Jack’s public duty is
to give evidence in response to that subpoena.

54. Which of the following statements about the contractual obligations of government
policy proposals is incorrect? Where the government makes a policy promise and a
citizen relies on it the court will always regard that policy commitment as a binding
contractual obligation. Correct: 1. The courts tend not to assign contractual obligations
to government policy promises, 2. Where the government enters into an ordinary
commercial agreement to buy services, the law of contract regulates this agreement,
and 3. In Australian Woollen Mills Pty Ltd v Commonwealth of Australia (1954) 92 CLR
424, the government’s wool subsidy was found to be an administrative scheme and not
contractual obligations.

55. Constitution: Section 51 Commonwealth Constitution grants what type of lawmaking

power to the Commonwealth Parliament? Concurrent powers.

56. Royal Assent: The Governor-General on the Queen’s behalf gives Royal Assent to an Act
of the Commonwealth Parliament.

57. Sally puts up a sign stating that she has lost her dogs and will pay a reward of $100 for
their return to her within 3 days. Which of the following statements is correct? Chang
will not get the reward because he returned the dog knowing it was Sally’s, but
unaware of her offer of a reward.
58. A qualified acceptance may also be known as a/an counteroffer.

59. Which of the following statements about contracts is true? It is a statutory requirement
throughout Australia that some contracts must be in writing and others must be
evidenced in writing

60. The legislature: Exclusive powers are those that can be exercised only by the
Commonwealth.

61. Sources of law – statute: Which of the following is incorrect? Statutes may not overrule
existing common law.

62. Civil law and criminal law: Where an act is both a crime and a tort, the State may
prosecute the offender for the crime, and the victim may bring a civil action.

63. Which of the following is most likely to be considered an offer? “I’ll pay you $3,000 if
you complete a total rewrite of chapters 12 and 15 of this textbook.”

64. Hierarchy of courts: Which of the following is higher than the Federal Court of Australia
in the federal court system? High Court. Lower than the Federal Court of Australia in the
federal court system: 1. Supreme Court, 2. Magistrates Court, and 3. Federal Magistrates
Court.

65. The Executive Power: The Executive power is administered by the Queen, the Prime
Minister, and the Cabinet.

66. Contracts voidable by a minor do not include those not binding unless ratified by the
minor during their minority. Include: 1. Those binding unless repudiated by the minor
during their minority, 2. Those binding unless repudiated by the minor within a
reasonable time after attaining their majority, and 3. Those not binding unless ratified by
the minor within a reasonable time of attaining majority.

67. The postal acceptance rule can be impliedly excluded by offeror specifying actual
receipt of acceptance.
68. With respect to the contractual capacity of corporations, s 124 of the Corporations Act
2001 (Cth) gives them all the legal capacity of a natural person (together with some
additional powers that can only be exercised by a corporation)

69. In which of the following situations is the offer most likely not to have lapsed? Where
Wrench had an option to purchase land but, unknown to Wrench, the seller died prior
to Wrench’s acceptance. Likely: 1. Where Carter, a prospective purchaser of land, makes
a counteroffer that is rejected and then states that he will accept the earlier offer, 2.
Where no time was stated for acceptance by Jane, but Ben does not accept within a
reasonable time, and 3. Where Jim has become overtaken by insanity prior to accepting.

70. Where an agreement has been made during the course of trade or commerce between
businesses, the situation will commonly indicate that the parties intended to create
binding legal relations.

71. Criminal offences: Which of the following is incorrect with respect to criminal offences?
A committal hearing is held before most summary offence matters. Correct: 1.
Indictable offences are generally the more serious offences, 2. The prosecution must
prove its case beyond reasonable doubt, and 3. Summary offences are determined by a
magistrate without a jury.

72. Peter verbally offers Tara his car for $5000. Tara refuses saying it’s not worth that, but
she will pay $4000. What is the status of Peter’s first offer? It has lapsed because of
Tara’s counteroffer.

73. Constitution: Which of the following statements about constitutions in Australia is NOT
correct? Australia has one constitution only (States have no constitutions). Correct: 1.
The Commonwealth Constitution sets out the relationship of the Commonwealth
government with the States, 2. A written constitution is a feature of a federal legal
system such as Australia, and 3. The Commonwealth Constitution sets out the powers of
the Commonwealth government.
74. What was one of the “practical benefits” received by Roffey in Williams v Roffey Bros &
Nicholls (Contractors) Ltd [1990] 1 All ER 512? Roffey did not need to find another
subcontractor.

75. In Elizabeth City Centre Pty Ltd v Corralyn Pty Ltd (1995) 63 SASR 235, the option to
exercise renewal of the lease Negated the postal rule because the notification was not
sent by certified mail as required.

76. Australian Constitution : Which Act established the federal legal and political system and
converted the separate colonies into states? Commonwealth of Australia Constitution
Act 1900.

77. Common law: Which one of the following statements about common law is correct?
Common law is judge made law.

78. Business law: which of the following no longer regulates business or commercial law?
Trade Practices Act 1974 (Cth).

79. Which of the following facts about a “contract under seal” is incorrect? It must always
be supported by consideration to be enforceable. Correct: 1. It must be in writing, 2. It
obtains its binding legal force from the form in which it was prepared, and 3. It can allow
a gratuitous promise to be enforced.

Quiz 5-13

1. A party in breach of contract is liable to pay damages for losses occurring in the usual
course of things from the breach.

2. Which of the following statements is correct? A contract may be illegal as performed

where only one party performs it in an illegal manner.

3. Which of the following is not accurate? Duress involves: Duress must be the only reason
for entering into a contract. Correct: 1. Actual or threatened violence, 2. A party
 coerced into entering into a contract (against their will), and 3. Coercion of a person or
their immediate family or near relatives.

4. Which of the following is not one of the six elements required for a claim of fraudulent
misrepresentation to succeed? The representation must be in writing (cannot be verbal
only). 3 of the 6 elements are required for a claim of fraudulent misrepresentation to
succeed: 1. The representation must be false, 2. the representation must have been
acted upon by the other party, and 3. the representation must be one of fact.

5. Which of the following is not true? Economic duress was found in North Ocean
Shipping Co Ltd v Hyundai Construction Co Ltd [1979] 1 QB 705 and the threatened
party was able to recover the payments made under duress. True: 1. is a threat to the
innocent party’s economic interests, 2. permits the threatened party to avoid the
contract, and 3. needs to be distinguished from a legitimate level of commercial
pressure - an example of an actionable level of pressure is a threat to break a contract
without any legal justification in order to extract money from an innocent party.

6. Which of the following is not usually recoverable by way of damages? Compensation for
mere inconvenience or disappointment. Recoverable: Loss that is difficult to estimate,
nominal loss, and expenses incurred in reliance on the other party’s promise to perform.

7. No fault on the part of either party is an element required for the doctrine of
frustration to operate.

8. In Howe v Teefy (1927) 27 Sr (NSW) 301 where a leased racehorse was retaken three
months into a three-year lease, the fact that assessment was difficult did not prevent a
court from granting damages where the plaintiff had been deprived of something of
value.

9. The term “transparency” in unfair contracts means it is expressed in reasonably plain

language that is readily available to the affected party.
10. Where a contract restricts one party from exercising their trade, it may be valid
provided it was e reasonable as between the parties and the public.

11. Janine has sold her business to Simone. Simone insists on inserting a clause in the
agreement that Janine cannot open a similar business within 10 km of her former
business, for the next two years. Which of the following is not true? The court will
always uphold restraint of trade provisions in contracts for sale of business. True. 1.
The clause is a restraint of trade. 2. Where a restraint of trade is reasonable, the whole
parts of the contract will be void. 3. It is impossible to say whether a court would deem
this restraint of trade clause reasonable without further details.

12. In determining whether a statement has become a term of the contract, the key test
applied by the courts is contractual intention.

13. In which case did the court recognise that damages for disappointment and distress
could be available subject to certain limitations? Baltic Shipping Co v Dillon (1993) 176
CLR 344.

14. Which of the following is not an example of an unfair contract term? The specifics of
Rose’s situation were not taken into consideration by Melton Apartment Construction
Ltd.

15. Unliquidated damages are damages where the court is to determine the amount.

16. Which of the following is NOT a requirement for an assignment of a debt or other chose
in action under various State statutes? Fourteen days’ notice in writing is provided to
debtor. Requirement. 1. The assignment is absolute and not by way of charge, 2. The
assignment is in writing, and 3. If not in writing then notice of the assignment is given by
notice to the debtor.

17. Which of the following statements about the parol evidence rule is true? It does not
apply where it can be shown that the written contract was not intended to be a
complete record of the agreement.
18. In Jarvis v Swans Tours Ltd [1973] QB 233, where Jarvis was disappointed by, among
other things, the little dry nut cakes on his holiday damages were awarded partly for
disappointment.

19. With respect to substantial performance and partial performance, partial performance
is where a party voluntarily accepts less than full performance by the other party.

20. How is the Australian Consumer Law structured into the Competition and Consumer Act
2010 (Cth)? The Australian Consumer Law is Sch 2 to the Competition and Consumer
Act 2010 (Cth).

21. Century Dragon Pty Ltd is contracted to export 1000 beach balls to Minerva Beach Surf
Club by 1 January, with payment due by 1 April. Which of the following is correct? The
time of delivery is likely to be considered an essential term.

22. A term that is vital to a contract is known as a condition.

23. Which of the following is NOT a method of termination? Rectification.

24. Parol evidence may not be admitted in which of the following circumstances? To
contradict an unambiguous term.

25. The test of whether a statement is a term or a representation is not dependent on which
of the following? Whether the party making the statement believed in the truth of the
statement or not.

26. In Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107, it was
held that the subcontractor could get an indemnity even though the subcontractor had
given no consideration under the contract

27. Which of the following is not correct? An action in restitution cannot be brought where
there is no contract between the parties. Correct. 1. An action in restitution is often
brought where one party has been unjustly enriched at the expense of the other, 2. can
 be brought where the contract between the parties is unenforceable, and 3. can be
brought where there has been only part performance.

28. In Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149
CLR 337, the High Court found that the contract was frustrated.

29. Compensatory damages are also known as actual/ordinary damages.

30. Which of the following is not a type of termination? Where an event occurs that is not
the fault of either party that causes a fundamental change to the nature of the
contract and the parties obligations and although the contract covers that eventuality,
it would cause hardship to one party to enforce it. A type of termination: 1.
Termination by bankruptcy, 2. When the parties have fully and exactly performed their
obligations to each other under the contract, and 3. when a deed displaces a simple
contract.

31. Which of the following is a circumstance where specific performance would be ordered?
Where the subject matter of the contract is an apartment in a complex of 20
apartments.

32. The remedy of restitution is based on the concept of unjust enrichment where the
defendant is unjustly enriched at the plaintiff’s expense.

33. Which of the following are not usually compensated for with payment of damages?
Injured feelings/ disappointment.

34. Which of the following is not correct with respect to the Australian Consumer Law?
Owing to the Commonwealth’s limited lawmaking powers under s51 of the
Constitution, it applies only to corporations. True: It is contained within Schedule 2 to
the Competition and Consumer Act 2010 (Cth), it applies to conduct engaged in outside
of Australia, and the Australian Consumer Law is applied in each State and Territory.

35. Which of the following is not one of the four ways a statute may render a contract illegal
set out in Yango Pastoral Co v First Chicago Australia Ltd (1978) 139 CLR 410? The
 contract may set out an unreasonable restraint. True: The contract may require an
action that statute forbids, may be performed in a prohibited manner, and may have
been made to effect an unlawful purpose.

36. Jacq and Jack robbed the Commercial Bank. Jacq thinks that Jack was too aggressive
with the tellers and the robbery could have gone very wrong. Jacq is now refusing to
give Jack his share of the takings. Which of the following is correct? The contract
involved the commission of a crime and is therefore illegal and unenforceable.

37. Janey takes her fur stole to the dry cleaner. When she returns to collect it, there is a
black mark in the shape of an iron in the middle of her stole and it is ruined. The dry
cleaner tells Janey that he is not liable for the damage to her fur stole as there was an
exemption clause in their agreement. Which of the following is not correct? If the
exemption clause was merely contained within a notice on the wall, the dry cleaner
will be liable for the damage. True: 1. If the exemption clause was on the dry cleaning
docket Janey was given and she was told : “don’t worry about this, it’s just the docket
you have to give us when you come to collect your stole”, the dry cleaner will not be
able to rely on the exemption clause, 2. In order for the exemption clause to be effective
where it was not in a signed document, it had to have been brought to Janey’s attention,
and 3. If the exemption clause was on the dry cleaning docket Janey was given rather
than a formal written contract, the onus will be on the dry cleaner to prove that Janey
was aware it contained conditions that would modify the agreement

38. Criminal proceedings may be brought for unfair practices.

39. Chris maintains that a document that he and Kathy have signed is a binding contract.
Kathy maintains that it is merely a receipt and does not include all the terms of their
agreement. Which of the following statements is correct? Parol evidence may be
admissible.
40. In which of the following circumstances is the court likely to order specific performance
rather than damages? The contract involved the sale of an expensive waterfront
mansion on Sydney Harbour.

41. In the case of restraint of trade with respect to employment, the court does not easily
allow parties to contract out of their means of employment.

42. The general principle with respect to damages for breach of contract is damages are to
place the innocent party in the same position they would have been in if the contract
had been performed.

43. Which of the following is not correct with respect to the prohibition of unconscionable
conduct within the meaning of the unwritten law? Unequal bargaining power of itself is
enough to constitute a special disadvantage. True: 1. Unwritten law includes equity, 2.
There is no unconscionable conduct where both parties have made the same mistake in
good faith, and 3. There must be a special disadvantage and exploitation of that
disadvantage.

44. Which of the following is correct? Damages must not be too remote from a breach.

45. James, a chef, tells Laura, who is looking to buy his antique lounge chair, that the chair is
of Spanish origin. Three weeks later a written contract is drafted that makes no mention
of the chair’s origin. The statement that the chair is of Spanish origin is most likely to be
a/an mere puff representation.

46. Which of the following is not true? A signature on a contract containing an exemption
clause guarantees that an exemption clause will be effective. True: 1. Will not
guarantee the effectiveness of the clause where the doctrine of non est factum applies,
2. Incorporates the exemption clause into the contract, and 3. Will be effective even if
one party did not read the contract.

47. Which of the following is not a requirement of a valid collateral contract? The
consideration must be of higher value than the main contract. True: 1. The statement
 must be promissory, 2. The parties must have intended the promise to be binding, and 3.
The promise must be supported by consideration.

48. In Victoria Laundry (Windsor) Ltd v Newman Industries Ltd [1949] 2 KB 528, only the
ordinary loss related to the delay in installation of the boiler was recoverable because
the defendant was not made aware that additional lucrative contracts had been
negotiated.

49. Which of the following statements is correct with respect to mistake? Rectification is a
remedy for certain types of mistakes in written contracts.

50. The definition of “consumer” is limited by what amount? Recently increased to

$100,000.

51. Which of the following are sources of illegality? Statute and common law.

52. When a contract is made orally, the question of what the express terms are is a question
of fact.

53. Which of the following would not constitute the unfair practice of harassment or
coercion under the Australian Consumer Law? Where there is a debt in connection with
the possible of goods and the creditor, Tells the debtor, among repeated demands for
payment give the debtor a discount for early payment. Could constitute the unfair
practice of harassment or coercion under the Australian Consumer Law: 1. Consciously
calculates to intimidate the debtor with the content of her demands 2. Makes demands
constantly in order to exhaust the debtor, and 3. Chooses particularly threatening
demands in order to demoralise the debtor.

54. Smithy Builders have a contract with Big Bank Pty Ltd which contains the following
clause: “Where Smithy Builders fails to complete the contract by 7 December, it will pay
a sum of $300,000 in full and final satisfaction of its liability.” Smithy Builders fails to
complete by 7 December. If Smithy Builders wishes to avoid paying the sum of $300,000,
what must it prove? That the clause is a penalty clause (to punish the builders).
55. Which unfair practice involves participation in a trading scheme where persons at the
top receive most of the benefits? Pyramid selling.

56. Sharma was selling his secondhand vacuum cleaner to Natasha and told Natasha that it
could “do all the rooms in the house ten times over without the filter needing to be
changed”. Natasha spent a few weeks shopping for other vacuum cleaners but
eventually returned and purchased Sharma’s, telling Sharma it was the cheapest she had
seen in two weeks and she liked the colour. When Natasha took it home she soon
discovered that the vacuum cleaner could only do one room at a time and then the filter
would need changing. Natasha cannot rely on Sharma’s statement for breach of contract
because Natasha did not attach any importance to the statement when it was made.

57. Which of the following is not a circumstance where the court would award specific
performance? Where the contract would require constant supervision by the court.
True: 1. Mitigation, 2. Contributory negligence, and 3. Remoteness.

58. In which case did the court recognise that damages for disappointment and distress
could be available subject to certain limitations? Baltic Shipping Co v Dillion (1993) 176
CLR 344.

59. Which of the following is not an element required for acceptable quality of goods? That
the goods are acceptably fit for the consumer’s purpose. True: 1. Free from defects, 2.
Durable, and 3. Safe.

60. Which of the following is not a type of contract illegal at common law on the grounds of
public policy? Contracts to oust the jurisdiction of the courts. True: 1. Contracts to
commit a tort, 2. Contracts prejudicial to the public safety, and 3. Champertous
contracts.

61. Non est factum means it is not [my] deed.

62. Which of the following is an element required for the doctrine of frustration to operate?
No fault on the part of either party.
63. Sandy is selling her horse, Flossy. Miranda is interested in buying Flossy. Sandy tells
Miranda that Flossy is the best little racehorse in Australia and has all the registrations,
licences and permits required to race in the current season but that Miranda should
probably get this checked herself. These two statements are mere puff and
representation.

64. Where a contract has not been completed within the specified time, the innocent party
will be entitled to terminate the contract upon giving notice that time is of the
essence.

65. Which of the following statements is correct? An exemption clause is a term that
excludes or limits the liability of one or more parties.

66. Which of the following actions is unlikely to constitute duress? A threat to contact
police if stolen moneys were not repaid to the employer. Likely: 1. A threat to destroy
the house of a party’s sister, 2. A physical beating to a party until they signed a contract
that they would have signed without the beating, and 3. Physical confinement of an
otherwise unharmed party to pressure them to enter into a contract that would be for
their benefit.

67. How may a court view substantial performance of a contract? The contract is complete,
but the uncomplete portion may be allowed for as a reduction of the full contract
price.

68. Where a contract is made in writing, the express terms of that contract are generally to
be found in the writing.

69. Which of the following matters is least likely to contribute to a finding of unconscionable
conduct in connection with goods or services? Where the supplier makes a commercial
decision to breach the contract knowing that the customer will seek a legal remedy for
the breach. Likely: 1. Where conditions imposed on a customer were not necessary for
the protection of the supplier’s interests, 2. Where the supplier acted in bad faith, and 3.
Where unfair tactics were used against the customer.
70. Which of the following is incorrect? Repudiation is the same as termination; the
contract is at an end.

71. Which of the following statements is not correct? A breach of a warranty entitles the
innocent party to be compensated with damages and termination of the contract.
Correct: 1. A condition is a major term of the contract; a breach renders the contract
substantially different from the agreed term, 2. A breach of a condition entitles the
innocent party to be compensated with damages, and 3. A warranty is a minor term of
the contract; a breach renders the contract insubstantially different from the agreed
term.

72. Which of the following statements is not correct? With respect to legality of object,
illegal objectives will not affect a contract provided both parties have agreed to it.

73. Chris and Tama buy a noodle bar from Udon4U Pty Ltd. In the course of negotiations,
Udon4U Pty Ltd’s agent, Nadia, misrepresents the turnover of the noodle bar, stating an
amount that is double the actually turnover. Nadia herself received this information on
turnover from Geoff, a director of Udon4U Pty Ltd. In making the misrepresentation,
what sections has Nadia likely contravened? As she merely passed on the information
with no intention to procure a contravention, she probably will not be personally
liable.

74. Which of the following is not correct? With respect to s 18 of the Australian Consumer
Law, silence is not relevant in considering the contravention.

75. A divisible contract is one that provides expressly or impliedly that performance is due
after the other party has performed stages of the contract.

76. Which is not an enforcement measure under the Australian Consumer Law?
Disqualification from managing corporations for a period of time for a breach of s 18.
An enforcement measure under the Australian Consumer Law: 1. An order of the court
requiring a supplier to establish a training regime for its employees, 2. A one-year
 probation order of the court, and 3. An order directing that a supplier comply with the
terms of an undertaking they have given as well as pay compensation for the breach.

77. In which of the following cases would a plea of frustration not succeed? Where the
event should have been foreseen. Succeed: 1. Where no specific provision was made
for the event in the contract, 2. Where performance is still possible but would be
pointless, and 3. Where performance has become fundamentally different from what
was contemplated by the parties.

78. Ben planned the perfect surprise birthday party for his mother. He hired a hall, he hired
a violinist and he organised catering. Two weeks prior to the event, the violinist called to
cancel. Ben was so upset at the loss of what he thought would be the highlight of the
evening that he called the whole event off. Ben lost both the deposit on the hall and the
deposit for the catering. Which of the following is correct? Ben has a duty to mitigate
his losses.

79. Which of the following constitutes pyramid selling? Jaz is approached by her neighbour
to join the sales team of Thames Beauty Products. Thames sells its products
door-to-door through agents and is a close-knit family type of company. Agents that
introduce other agents to “the family” are rewarded with a finders’ fee. It is only $500
to join the Thames family, and Jaz only has to spend $400 on products in her first
month.

80. What is the main difference between the misleading or deceptive conduct provisions in
the Trade Practices Act 1974 (Cth) and in the Australian Consumer Law? The Australian
Consumer Law refers to a person.

81. The plaintiff in an action under s18 of the Australian Consumer Law is required to prove
what? The conduct is misleading or deceptive or likely to mislead or deceive.

82. Which of the following guarantees applies to a sale by auction? Guarantee as to title.
83. When are nominal damages awarded? A legal right has been infringed but there is no
actual loss.

84. A unilateral mistake does not include mistake as to capacity of the parties. Include: 1.
Mistake as to the nature of the document signed, 2. Mistake as to the identity of the
parties, and 3. Mistake as to the terms of the contract.

85. A consumer contract with respect to unfair contract terms does not involve wholly for
personal, domestic or household use or resupply. Involve: 1. The supply of goods or
services, 2. The sale of land, and 3. An individual who acquires goods or services or land.

86. Which of the following is a way that a contract may be terminated by operation of law?
Where a party to a delivery of goods contract becomes bankrupt.

87. Which of the following statements is incorrect? The remedies available for breach of an
intermediate term depend on their classification as an intermediate term, not the
effect of the particular breach. Correct: 1. Innominate terms are neither conditions nor
warranties, 2. Intermediate terms are the same as innominate terms, and 3.
Intermediate terms are terms that are capable of being breached in minor and major
ways.

88. Which of the following is not correct? An injunction is sometimes granted to compel a
party to do something they would not have been ordered to do by specific
performance. Correct: 1. is an order of the court, 2. Restrains a person from doing
something, and 3. Is an equitable remedy.

89. Which of the following is not correct? Parol evidence is not admissible to evidence
whether a document constitutes a contract or merely a note. Correct: 1. Will always be
admissible to evidence duress, 2. Is admissible to evidence a collateral oral agreement,
and 3. Will always be admissible to evidence fraud.

90. Exemplary damages might be ordered as a penalty where there has been an
intentional breach.
91. In considering whether a contract is a standard form contract, which of the following is
not something that the court must consider? Whether the price payable takes into
account the specifics of the party and the transaction. Must consider: 1. If one of the
parties has most of the bargaining power, 2. If one party prepared the contract prior to
discussing it with the other party, and 3. If another party was given opportunity to
negotiate the terms.

92. Which of the following is not correct? The Australian Consumer does not have any
provision for unconscionable conduct. Correct: 1. The Australian Consumer Law
contains provisions on unconscionable conduct, 2. The Australian Consumer Law
contains provisions on misrepresentation, and 3. The Australian Consumer Law contains
provisions on misrepresentation in relation to the sale of land.

93. John tells Cara that the car he has for sale is “as is, where is” and “only needs the oil
filter changed and she’s good to go”. John made this statement based on the fact he has
had the car checked by a mechanic a few weeks ago. Unfortunately, the car required
more significant repairs before it was roadworthy. What remedies are available for Cara
under the common law? Cara has no remedy under the common law (if John’s
statement was not a term in the contract).

94. Which of the following is correct? When the parties’ obligations under a contract have
been discharged then so has the contract.

95. In which one of the following cases was it held that damages are not recoverable for
distress or disappointment unless the contract promised to provide pleasure, enjoyment
or relaxation or where the distress or disappointment arises from physical injury or
physical inconvenience? Baltic Shipping Co v Dillon (1993) 176 CLR 344.

96. Which of the following is not an equitable remedy? Exemplary damages. Equitable
remedy: 1. Injunction, 2. Specific performance, and 3. Restitution.
97. In which one of the following cases was it held that for a loss in the contemplation of the
parties to be recoverable it must be “a serious possibility”, “a real danger”, “liable to
result” or “not unlikely” to occur? Koufos v Czarnikow Ltd [1969] 1 AC 350.

98. How is repudiation determined by the court? Objectively.

99. Tom agrees to fix Richie’s car for $1,000. Richie pays a deposit of $200 and Tom
guarantees the job will be completed within two weeks. Before Tom commences the
repairs, the car is stolen from Richie’s locked garage and destroyed by fire. Richie
demands the return of his $200 deposit and Tom refuses to give it to him. Which of the
following is not correct? Under the Australian Consumer Law and Fair Trading Act 2012
(Vic), Tom is entitled to retain the $200 deposit. Correct: 1. The contract is
automatically terminated, 2. Tom is no longer obligated to fix Richie’s car, and 3. Under
the Australian Consumer Law and Fair Trading Act 2012 (Vic), Tom is entitled to retain
the portion of the $200 deposit he spent on parts and other relevant expenses, if any.

100. Which of the following statements about damages is not correct? Damages are awarded
to compensate a party for all losses caused by breach of contract.

101. Where one party believes the contract refers to the Bonny Lass, a freight ship based out
of Norway, and the other party believes the contract refers to the Bonny Lass, a freight
ship based out of Hong Kong, this is an example of a mutual mistake.

102. Which of the following is not one of the three elements of an unfair term under s 24(1)
of the Australian Consumer Law? Where the term is not transparent. Three elements of
an unfair term: 1. It would cause a significant imbalance in the parties’ rights and
obligations, 2. It is not reasonably necessary to protect the interests of the
disadvantaged party, and 3. It would cause detriment to a party if it were applied.

103. In Shevill v Builders Licensing Board (1982) 149 CLR 620 at 625, Gibbs CJ listed all but the
following various ways that a contract may be repudiated “[I]f one party discharges
[themself] from performance by agreeing to a new agreement that supersedes the
previous one”.
104. In Barton v Armstrong [1976] AC 104, the court held that the threats to the plaintiff’s
life contributed to the plaintiff’s decision to sign the contract and therefore
constituted duress.

105. Which of the following is not correct with respect to mitigation of loss? The burden of
proving that losses were mitigated falls upon the party claiming the damages ie. the
defendant.

106. Which of the following is the general position of the courts when awarding damages?
Where it is possible to place an innocent part in the position he/she would have been
in if the breach had not occurred.

107. With respect to consumer guarantees, which of the following is not correct? With
respect to fitness for purpose, a “disclosed purpose” relates to the supplier only - the
manufacturer may make representations to the consumer, but the consumer cannot
disclose a purpose to the manufacture and receive a guarantee in return. Correct: 1. It
is possible to exclude the consumer guarantees in very limited circumstances, 2.
Remedies for non-compliance with the consumer guarantees depend in whether there
was a “major failure” or not, and 3. A manufacturer does not need to provide repair
facilities or spare parts after a certain period.

108. Consumer guarantees as to title are contained within sections 51-56 and ss 60-61 of the
Australian Consumer Law.

109. Which of the following is not an unfair practice under the Australian Consumer Law?
Where a television advertisement for a chocolate bar shows teddy bears working the
manufacturing lines.

110. Which of the following is not a type of contract void at common law? An agreement that
offends the Australian Consumer Law (ACL). A type of contract void at common law: 1.
A contract to oust the jurisdiction of the courts, 2. A “marriage brokerage” agreement
whereby money is paid in order to procure a marriage, and 3. A price maintenance
agreement that restrains trade.
111. What does the concept “quantum meruit” mean? The innocent party would be unjustly
enriched if they were able to retain the benefit without compensating the party in
breach for the “amount he deserves”.

112. In Hadley v Baxendale (1854) 9 Exch 341; 156 ER 145 the court recognized “reasonably
foreseeable losses” as being

a) Losses that arise naturally from a breach of contract, and

b) Losses that are actually contemplated by the parties.

113. Which of the following is correct with respect to privity of contract? Despite the
doctrine, a new owner of land is able to enforce a covenant between the previous
owner and another party.

114. Why are late payment charges on credit cards not penalties? Banks penalties on cards
are legitimate to cover their costs.

115. In Curtis v Chemical Cleaning & Dyeing Co Ltd [1951] 1 KB 805, the exemption clause in
the sales agreement for the drycleaning was not sufficiently explained to the
customer.

116. Which of the following is not a situation where frustration would occur? Where the
performance of the contract is rendered illegal by the destruction of the subject
matter of the contract by one of the parties. A situation where frustration would occur:
1. Long term serious illness of a person contracted to perform a personal services
contract, 2. Where the government in exercising its powers has made completion of the
contract impossible, and 3. Where a change in the law renders performance of the
contract illegal.

117. When considering whether a contract is a standard form contract, the court does not
have to consider whether one party’s vicarious liability for its agents is limited.
Consider: 1. The bargaining power of the parties as unequal bargaining power does not
constitute a special disadvantage, 2. Whether both parties had the opportunity to
 negotiate the terms of the contract, and 3. Whether the terms of the contract take into
account the specifics of the particular transaction.

118. A party repudiates a contract when they are no longer able or are unwilling to perform
their obligations

119. Chung is looking to purchase a carwash business from Terry. Terry tells Chung that she
serves 100-150 cars per day and that she has just concluded an agreement to service the
fleet of cars of a local business. In reality, Terry has only served around 15 cars per day
since her customer service received a bad review in the local newspaper and a
competing carwash business opened one street away. Terry intends for Chung to buy her
business based on what she has stated. This is an example of fraudulent
misrepresentation

120. Undue influence differs from duress in that with undue influence, no unlawful act is
required

121. If one party has completed its obligations under the contract, and the other has not: The
contract cannot be terminated by simple agreement without consideration

122. In ACCC v Turi Foods Pty Ltd [2012] FCA 19: The statement that the chickens were “free
to roam” was misleading as there were too many chickens pr square metre for the
chickens to easily move.

123. Can a person use an official position they hold for their financial advantage? No because
if a contract is involved, this could lead to the promoting of corruption in public life.

124. Marnie loans Bill $1000 so that Bill can pay a local politician to ensure his tender will be
the winning tender. The contract between Marnie and Bill is an illegal contract.

125. Which of the following is not a valid assignment of a contract? A contract for personal
services.
126. Which of the following is correct? When the parties’ obligations under the contract
have been discharge, then so has the contract

127. Matt sells his car to Tabitha, who purchases it on the condition that she can continue to:
keep it in his garage at no cost for the next six months. Tabitha pays in full. Two months
later, Matt tells Tabitha she will have to remove her car from his garage as he has bought
a: new car and wants to keep it in the garage. Which of the following statements is
correct? If Tabitha promises to remove her car, Matt will not be able to enforce the
promise: unless the promise is supported by consideration or made under seal.

128. In which case was it that held that where an exemption clause is in a non-contractual
document, the clause must be brought to the other party’s attention for it to be
effective? Causer v Browne [1952] VLR 1.

129. A liquidated damages clause in a written contract: Sets out the amount agreed payable
to the innocent party if there is a breach of contract

130. In which case did the court find that passing off had been engaged in and the misleading
and deceptive conduct provisions had been contravened? Apand Pty Ltd v The Kettle
Chip Co Pty Ltd (1994) 52 FCR 474.

131. Which of the following sections of the Australian Consumer Law are relevant to
misrepresentation? Sections 18 and 29.

132. Terms may not be implied into a contract by representations

133. In Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26, the court
recognised which of the following terms which later became part of Australian law in
Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115?
Innominate term

134. Fraser crashes his car with his friend Angus as a passenger. Angus is injured. Angus was
not wearing a seatbelt. Which of the following is not correct? Damages cannot be
apportioned for breach of contractual duty of care where there is contributory
 negligence. Correct: 1. Liability would likely be apportioned between Fraser and Angus,
2. Damages awarded to Angus, if any, would be reduced by his contributory negligence,
and 3. Angus’ contributory negligence relates only to his own safety, not to that of
others.

135. Which of the following is not a restraint of trade? An agreement by which Steve agrees
to repay his daughter’s loan debt in return for the person who advanced the loan to
his daughter agreeing not to report Steve’s daughter to the police for fraud. A restraint
of trade: 1. A price maintenance agreement, 2. A contract restraining Laura from
working as a welder within Ballarat for two years after her termination with Welders R
Us, and 3. An agreement between John and Liz that John will not open a brew shop
within 2km of the brew shop he just sold to Liz.

136. Which of the following constitutes referral selling? Jaz purchases a painting through a
new art gallery that has just opened in town. The price is high and Jaz is at first uncertain
about the expense, but the art dealer promises Jaz a commission on sales to any of Jaz’s
friends who she sends along to the gallery. Jaz has a lot of art collector friends so is sure
that she will receive some commission from the gallery in the near future.

137. Ella contracted Anasaki to build a balcony for her house to certain specifications. When
Anasaki had finished, Ella was shocked to see that the balcony was much bigger than she
had specified. Ella refused to pay Anasaki. Which of the following is incorrect? It would
be unjust for Ella to have to pay any money for a balcony that was not built to her
specifications under the contract.

138. Cathy and Mel entered into a contract where Cathy was to steam clean seven rooms in
Mel’s house at $200 per room. After cleaning three rooms, Cathy abandoned the job for
a more valuable contract. Which of the following is true? If the contract is divisible,
Cathy is entitled to payment for the work she has done.
139. Chang wants the court to imply an engineering custom into a term of a contract to which
he is a party. The other party has no knowledge of this custom. It is not contrary to any
of the express terms of the contract. The court may imply the term.

140. Jong complains that the barbecue he bought is not fit for purpose because the metal
sides melted the first time he cooked with it. The manufacturer maintains that Jong
should not have used the barbecue for slow cooking and that it never represented that
the barbecue would be fit for the purpose of slow cooking. What are the circumstances
in which the guarantee as to fitness for purpose would apply? Where Jong made known
to the supplier that he was going to use the barbecue for slow cooking meals.

141. It is important to distinguish between representations and terms because damages can
only be awarded for fraudulent or negligent misrepresentation.

142. Which of the following is not an enforcement measure under the Australian Consumer
Law? A disclosure order issued by the ACCC. An enforcement measure under the
Australian Consumer Law: 1. An order of the court requiring a supplier to publish an
advertisement, 2. A two-year probation order of the court, and 3. A notice issued by the
ACCC requiring a supplier to substantiate a claim about a product they are selling.

143. Which of the following is not an exception to privity? Employment. Exception: 1.

Insurance, 2. Agency and trust, and 3. Property Law.

144. James is going through a difficult time and does not feel he can confide in anyone.
Eventually he confides in the priest of his church and asks for support. The priest
forcefully tells James to turn over all of his money to the church or he will be struck
down by lightening. The priest does not believe that James will be struck down. James
makes the payments. Which of the following is most likely legal grounds for James to
avoid the transaction? Undue influence.

145. In which High Court decision was it said: “[T]here are two relevant circumstances in
which a breach of contract by one party may entitle the other to terminate. The first is
where the obligation [is] essential … The second relevant circumstance is where there
 has been a sufficiently serious breach of a non-essential term …we rest our decision in
the appeal not upon the ground of breach of an essential obligation, but upon
application of the doctrine respecting intermediate terms.” Koompahtoo Local
Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115.

146. A written contract allows Joseph, the neighbour of Sonny, to take “as many strawberries
as he likes each strawberry season”. This contract is valid as the parties’ intention is
clear.

147. Which of the following is not a way that a person seeking to rely on an exemption clause
can show that the clause has become part of the contract? By showing it was brought
to the notice of the other party at the time of, or subsequent to, entering into the
contract.

148. Which of the following is not correct? It is prohibited to offer goods at a special price
and not have a sufficient amount of those goods available for a long period of time.
Correct: 1. It is prohibited to offer free gifts with purchase then factor the cost of the gift
into the purchase, 2. It is prohibited to take a customer’s money knowing that the
product they want is no longer available even where the product the supplier intends to
sell to the customer in its place is similar, and 3. It is not prohibited for a bank to send a
credit card to a customer at their written request.

149. Which of the following is not a way to discharge a contract? Through breach.

150. Who/what are exempt from the provisions of s18 of the Australian Consumer Law?
Information providers such as media outlets.

151. Krell v Henry [1903] 2 KB 740 illustrated what point? That the parties are discharged if
an event occurs which forms the basis of the contract, but which prevents
performance at no fault of either party.

152. Contingent conditions include conditions subsequent and conditions precedent.

153. Which of the following is not one of the special relationships in which the onus of
proving that undue influence was not employed shifts to the denying Party? Paren and
child where the child is living independently. Special relationships: 1. Solicitor and
client, 2. Trustee and beneficiary, and 3. Doctor and patient.

154. Which of the following is not correct with respect to termination by subsequent
agreement? A subsequent simple contract can cancel a contract where one party has
completed their obligations and the other has not. Correct: 1. A subsequent agreement
may cancel an original contract, 2. A subsequent agreement must be valid to rescind an
earlier contract, and 3. A subsequent simple contract can cancel a contract where there
is still something to be done by each party.
155. The parol evidence rule performs much the same function as a merger clause.
156. A party repudiates contract when the party is able but unwilling to perform their
obligations under it.
157. Where a loan contract allows for termination by the loan provider in the event of default
by the borrower, this is an express power to terminate.
158. If the court held the sum the parties inserted into their contract ($100,000) to be a
penalty, and the actual loss determined by a court was $30,000, the plaintiff would be
able to recover $30,000 only.
159. Which of the following statement is not correct? A breach of a warranty entitles the
innocent party to be compensated with damages and termination of the contract.
Correct: 1. A condition is a major term of the contract; a breach renders the contract
substantially different from the agreed term, 2. A breach of a condition entitles the
innocent party to be compensated with damages, and 3. A warranty is a minor term of
the contract; a breach renders the contract in substantially different from the agreed
term.
160. Which of the following is not correct with respect to misleading conduct under the
Australian Consumer Law as compared with the common law of misrepresentation? The
person does not necessarily have to engage in the conduct. Correct: 1. An opinion will
 not contravene s 18 unless the person did not genuinely hold that opinion, 2. Silence
may contravene section 18, and 3. Mere puffs will not contravene s 18.
161. Which of the following is not a remedy for unconscionable conduct? A criminal
prosecution. A remedy for unconscionable conduct: 1. An injunction, 2. Ordinary
damages, and 3. A pecuniary penalty.
162. Which of the following is not correct? A criminal penalty can be sought for a breach of s
18. Correct: 1. The ACCC can seek both criminal and pecuniary penalties for breaches of
the unfair practices provisions of the Australian Consumer Law, 2. The new maximum
penalties may vary depending on turnover of a corporation, and 3. Injunctions can be
sought as orders
163. Which Australian case is most similar to H Parsons (Livestock) Ltd v Uttley Ingham & Co
Ltd [1978] QB 791 in relation to applying foreseeability to limit claims for damages? Day
v O’Leary (1992) 57 SASR 206
164. Which of the following is not correct? Restitution was not awarded in the case of Pavey
& Matthews Pty Ltd v Paul (1987) 162 CLR 221 as the contract was not in writing as
required by statute and therefore not enforceable. Correct: 1. May be awarded where
there is less than substantial performance, 2. Is said to be based on unjust enrichment,
and 3. Is subject to a number of defences, such as estoppel.
165. Coulls v Bagot’s Executor & Trustee Co Ltd (1967) 119 CLR 460; Beswick v Beswick [1968]
AC 58 and Tweddle v Atkinson (1861) 1 B & S 393 all relate to the doctrine of privity.
166. The Australian Consumer Law definition of “supply” does not include gift. Include: 1.
Re-supply, 2. Exchange, and 3. Lease.
167. When it was said in Re Hall & Barker [1878] 9 Ch D 538, “if a shoemaker agrees to make
a pair of shoes, he cannot offer you one shoe and ask you to pay one half the price”, this
is referring to the court’s tendency to regard contracts as entire.
168. Which of the following is most correct? If an amount of $5,000 is specified in a written
contract as the agreed genuine pre-estimate of damages in the event the contract is
breached then this is commonly referred to as liquidated damages.
169. Which of the following is not true with respect to misleading or deceptive conduct? A
person acting as a “mere conduit” in passing on representations may also be liable.
True: 1. The plaitiff has to prove that conduct was misleading or decetive, 2. The plaitiff
has to prove the causal link between the conduct and the loss, and 3. A corporation is
not liable where it is clear that the corporation is not the source of the information.
170. Which of the following constitutes bait advertising? Jaz approaches a salesperson on
the forecourt to buy the car package she saw advertised on television and is told that
there were only two cars for sale as a part of that deal and there are now none left.
The salesperson tells Jaz that she would look much better in the convertible model

and although there is no deal on that car, it is only $50,000 more.

Quiz 14-15

1. To claim damages a causal link must be established between what two things? The
defendants breach and the plaintiff’s injury.

2. Which of the following is not correct? The reform to the law of negligence that took
place in Australia in the early 2000s does not apply to claims in contract law. Correct: 1.
Limits the scope of potential liability for negligence, 2. Was enacted in all Australian
states and territories, and 3. Covers personal injury.

3. In Tame v State of New South Wales (2002) 211 CLR 317 where Tame was given a false
blood alcohol reading, part of the test of reasonable foreseeability is a question of fact.

4. In Australian Safeway Stores v Zaluzna (1987) 162 CLR 479, the respondent was a lawful
entrant upon the land of the respondent, establishing a relationship between them
and there was therefore a duty of care owed by the appellant to avoid a foreseeable
risk of injury.

5. Which of the following is not a provision of the Wrongs Act 1958 (Vic) relating to
professional liability? The court must rely on peer professional opinion even where it
considers that opinion irrational.

6. Where a person gives advice, that advice is relied upon and the advice is incorrect, the
person giving the advice may be liable in negligence. Which of the following is incorrect?
The duty of care only arises where the “special relationship” involves a person seeking
advice from the advice-giver, not where the advice was given unrequested and merely
accepted.

7. The “neighbour principle” is often viewed as a test of the foreseeability of harm.

8. Why was the plaintiff successful in Overseas Tankship (UK) Ltd v Miller Steamship Co Pty
Ltd (The Wagon Mound No 2) [1967] AC 617 (PC) when another plaintiff failed in the
 earlier related Wagon Mound case? In the first case, the plaintiffs failed to show that a
reasonable man would have foreseen the risk of damage from the oil spill.

9. Nicola drives the forklift at her place of work, Rooze’s Roofing. Nicola always leaves the
forklift in a certain place where she has been told to leave it, with the forks up off the
ground. One afternoon a customer who is collecting goods from the workshop reverses
his car into the forks on the forklift. He is injured and his car is damaged. What is the
principle that would make Nicola’s employer liable for her actions? Vicarious liability.

10. Which of the following is not correct? In The Wagon Mound No 1 and The Wagon
Mound No 2, where there was an unfortunate combination of an oil spill, welding
sparks and floating cotton waste, the loss was found to be not reasonably foreseeable
in the circumstances. Correct: 1. If damages are too remote will not be recoverable, 2.
The remoteness test will be satisfied where the damage suffered is of the same type of
kind as foreseeable damage, and 3. In order for damage to not be too remote, it must be
reasonably foreseeable.

Quiz 16-17

1. Which of the following statements regarding the dissolution of a partnership is

incorrect? A firm’s assets as contributed by partners to make up capital losses need
not be applied to pay the firm’s debts/liabilities to non-partners. Correct: 1. In the
event of dissolution, losses must be met first out of profits, followed by capital, then by
partners in proportion to their share of profits, 2. After dissolution, each partner is
entitled to advances and residue by the firm, and 3. After the dissolution, each partner’s
authority to bind the firm continues, so far as necessary for winding up partnership
affairs and completing unfinished transactions.

2. The incorrect statement is? The owners of a corporation have unlimited liability.
Correct: 1. A separate legal entity is separate from its owners and managers, 2. A
corporation can sue and be sued in its own name, and 3. Complex business structures
are more expensive to establish.
3. The incorrect statement? If the giving of investment advice is within the scope of the
firm’s business then all partners are jointly and severally liable for advice that is not in
a client’s best interests. Correct: 1. Partners are not bound when another partner
misappropriates monies, 2. The client should seek a personal indemnity from a partner,
and 3. Special skill is required to bind all partners.

4. Find a statement that is incorrect. A wrongful act/omission includes breach of contract

or of fiduciary duty, negligent misrepresentation, and misleading or deceptive
conduct. Correct: 1. A retiring partner should give specific notice of their retirement to
persons with whom the firm has had dealings to avoid being made liable for debts
incurred after retirement, 2. Persons who represent themselves, or knowingly allow
themselves to be represented, as a partner, are liable as a partner to anyone who has on
the faith of such representation given credit to the firm, and 3. Innocent partners are
liable for wrongful acts of other partners made in the ordinary conduct of business.

5. Which finding is correct?: In Popat v Schonchhatra (1997) 3 All ER 800, the Court decided
Popat was entitled to half the profits on the sale of the business and to a share of the
profits that had accrued after the dissolution of the partnership, but before the final
settlement of accounts.

6. Which statement regarding partnership is incorrect? Partnerships do not avoid taking

on the formality and expense of an incorporated company. Correct: 1. A partnership (or
firm) is a way of gathering resources or expertise for major projects, 2. Partners in a
partnership complement each other with their skills and bring in new capital and
broader funding options, 3. A partnership in law may exist without the partners being
aware of it.

7. Which below is incorrect? A firm is not bound by the acts of a partner if the person with
whom the partner is dealing knows or believes him/her to be a partner. Correct: 1. the
act is not of the usual business of the kind carried on by the firm, 2. the partner exceeds
his/her actual authority in the particular matter, and 3. the person with whom the
partner is dealing knows that he/she has exceeded his/her authority.
8. Which of the below statement is incorrect? Partnership property is liable to be seized
for the private (personal) debt of a partner and made liable on a judgment against the
partnership. Correct: 1. A creditor who has obtained a judgment in respect of the
separate debt of a partner may obtain an order charging that partner’s interest in the
partnership property and profits with the amount of the debt and interest, 2. A creditor
who has obtained a judgment in respect of the separate debt of a partner may obtain by
order the appointment of a receiver of that partner’s share of profits and of any other
money which may be coming to the partner in respect of the partnership, and 3. The
two sources of law relevant when considering how partners bind their partners when
dealing with third parties are the common law (including equity) of agency and the
Partnership Act. The common law complements the provisions of the Partnership Act in
relation to the authority that an agent has.

9. Which legislation regulates partnerships in NSW? Partnership Act 1892 (NSW) [or
Partnership Act 1958 (Vic) if there is no (NSW) after Partnership Act 1892]

10. Legislation in Victoria: What Act regulates partnerships in Victoria? Partnership Act 1958
(Vic)

11. Which below statements is incorrect? In a partnership, partners have limited liability
for the business debts. Correct: 1. Partners share the profits in a partnership, 2. A
partner is also an agent of the partnership, and 3. The agreement may be implied in a
partnership.

12. Which of the below statements is incorrect? A written and signed notice of a partner’s
intention to dissolve the partnership is required where no fixed term has been agreed
upon for the duration of the partnership. Correct: 1. a continuing guarantee given by or
to a partnership is revoked as to future transactions if there is a change in the
constitution of the partnership, 2. where a partnership continues after a fixed term has
expired, the rights and duties of the partners remain the same, but the partnership
becomes a partnership at will, and 3. partnership property must be used exclusively for
 the purposes of the partnership and in the manner set out in the partnership
agreement.

13. Which of the statements below is incorrect? A partner’s express authority must be in
writing. Correct: 1. A partner’s authority to buy/sell goods of a kind necessary for or
usually employed in the business on account of the firm is implied, 2. A partner cannot
pledge the firm’s credit for purposes not connected with its ordinary course of business
without express authority, and 3. A partner cannot pledge the firm’s assets for private
debts without express authority.

14. Which of the below does not apply to the Partnership Act? The partnership under the
Act must be registered with ASIC. Apply: 1. The rules in the Partnership Acts assist in
determining whether a business is being carried on in common, 2. Each rule states a
negative: i.e. that a certain fact does not of itself create a partnership, but is only
indicative of a partnership, and 3. Joint or part ownership or joint tenancy, or tenancy in
common whether or not the owners/tenants share the profits, does not of itself create a
partnership as to anything soheld/owned.

15. How would a partner pledge the firm’s credit? Only for a purpose directly connected to
the firm’s business but must have express authority to do so.

16. Which of the following is NOT a ground for termination of a partnership? Partner leaves
the jurisdiction. A ground for termination of a partnership: 1. Court order, 2. Expiry of a
fixed term, and 3. Bankruptcy of a partner.

17. The incorrect statement is? A partner cannot pledge/sell partnership property, incur
and pay debts on partnership accounts or hire employees. Correct: 1. A partner has
express actual and implied actual authority to engage in certain activities with third
parties, 2. Contravention of an agreement to restrict a partner’s authority is not binding
on the firm if notice of the agreement has been given, and 3. In Polkinghorne v Holland
(1934) 51 CLR 143, the firm was held liable because Holland provided the advice in his
role as solicitor; thus in the ordinary course of the firm’s business.
18. Which of the following statements regarding limited partners is incorrect? If a limited
partner has suffered his/her share of the partnership property to be charged for a
separate debt, the other partners are entitled to dissolve the partnership. Correct: 1. A
limited partner may assign his/her share in the partnership with the consent of the
general partners, 2. The consent of a limited partner is not required to admit a person as
a partner, and 3. A limited partner is not entitled to dissolve the partnership by notice.

19. Which of the following statements regarding partnerships is incorrect? Each partner
must take an active part in the direction and management of the firm. Correct: 1. The
second element of a partnership is carrying out a business in common, 2. To be a
partnership there must be a mutuality of rights and obligations, and 3. In Degiorgio v
Dunn [2004] NSWSC 767 it was held that there was no partnership because the business
was not run “in common”.

20. Find incorrect statement. A partnership cannot be dissolved because the business is
carried on at a loss. Correct: 1. A term often included in a partnership agreement that
allows other partners to purchase a retiring/deceased partner’s interest at an agreed
valuation avoids the disruption of a formal winding, 2. Partnerships can be dissolved
because of mutual incompatibility, making it impossible for partners to carry on a
business, and 3. On dissolution, partnership property can be applied towards the
payment of partnership liabilities/debts and any surplus can be distributed among the
partners.

21. What constitutes an exception to the usual number of a partnership being 20 partners?
The Corporations Regulations 2001 (Cth) provide greater numbers in certain specified
professions.

22. Which court decision regarding fiduciary duties is incorrect? In Harvey v Harvey (1970)
120 CLR 529, the Court held that if a partner receives an additional annual fee to be
“on call” for that client, the fee belongs to the partnership. Correct: 1. In Chan v
Zacharia (1984) 154 CLR 178, the court decided that that the fiduciary relationship
continued until the partnership had finally been wound up, 2. In United Dominion Corp
 Ltd v Brian Pty Ltd (1985) 157 CLR 1, the Court found that a fiduciary relationship, with
attendant fiduciary obligations ordinarily exist between prospective partners who have
embarked upon the conduct of the partnership business or venture before the precise
terms of any partnership agreement have been settled, and 3. In Popat v Schonchhatra
(1997) 3 ALLER 800 in the absence of a statement to the contrary, partners are entitled
to an equal share of profits.

23. Which is incorrect statement? If a member of a firm of solicitors acting for a vendor in a
sale absconds with the deposit, his/her partners are not liable to refund the money.
Correct: 1. In Lloyd v Grace, Smith & Co [1912] AC 716, the firm was held responsible for
the fraud committed by a managing clerk of a firm, who misappropriated property while
acting within the scope of his authority, 2. In SJ Mackie Pty Ltd v Dalziell Medical Practice
Pty Ltd [1989] 2 Qd it was held that the transfer of a share to a non-partner breaks the
continuity of the firm, constituting a new firm/partnership of the remaining former
partners and the new member, and 3. Partnership agreements can contain provisions to
enable the transition from one firm to another to be effected without the disruption of a
formal winding up.

24. Which of the following statements is incorrect? a partnership must be in writing.

Correct: 1. a separate legal entity can commit civil wrongs and engage in criminal
conduct, 2. a public company has serious compliance obligations, and 3. a separate legal
entity is entitled to own property, pay tax and enter into contracts.

25. Find one incorrect statement? A creditor can enforce liability against an incoming
partner whether or not he/she is a party to the contract. Correct: 1. In the absence of
special statutory provision, although each partner is liable with the others for the whole
of the debts of the firm, their liability is only joint, 2. A creditor can bring only one action
against members of a partnership and any partner can insist that the action be stayed
until all other partners are joined as parties, and 3. A person admitted into an existing
firm, liability may be incurred where it is specially agreed upon.
26. Which statement regarding dissolution of a partnership is incorrect? After payment of
the firm’s liabilities, partners do not have the right to have surplus assets applied in
payment of what may be due to the partners respectively / A firm’s asset as
contributed by partners to make up capital losses need not to be applied to pay the
firm’s debt/liabilities to non-partners Correct: (1) Partners are not entitled to have
partnership property applied towards the payment of partnership liabilities, (2) On the
termination of the partnership, any partner can apply to the court for a decree to
dissolve the partnership and appoint a receiver to wind up the firm’s business/affairs,
and (3) Should a sequestration order be made against a partner, a creditor of the firm
cannot receive a dividend out of the bankrupt’s separate property until all separate
creditors of the bankrupt partner have been paid in full, (4) In the event of dissolution,
losses must be met first out of profits, followed by capital, then by partners in
proportion to their share of profits, (5) After dissolution, each partner is entitled to
advances and residue by the firm, and (6) After the dissolution, each partner’s authority
to bind the firm continues, so far as necessary for winding up partnership affairs and
completing unfinished transactions.

27. Cribb v Korn (1911) 12 CLR 205 established the sharing of joint returns does not in itself
create a partnership.

28. Regarding partnerships, which of the following statements is incorrect? Partnerships are
created with a view to profit, so partners must make a profit b A partner does not
have to have a direct claim to a share of the profits. Correct: 1. Associations and
charities are not partnerships, as profits come from ancillary business activities and are
reinvested, not distributed as dividends to their members, and 2. The Partnership Acts
do not govern members of a corporation incorporated under the provisions of the
Corporations Act 2001 (Cth), a special Act of Parliament, or Royal Charter.

29. Which statements is incorrect? More complex business organisations are unsuitable for
larger businesses. Correct: 1. Like most partners, sole traders have unlimited personal
liability of the business/firm, 2. Upon incorporation, a corporation becomes a separate
 legal entity, and 3. Diverse ownership requires proper management and expertise in
numerous areas.

30. Which statements is not correct? A partnership agreement must be in writing; it cannot
be reached orally or by a course of conduct. Correct: 1. if the agreement is that a
person should be paid a fixed sum by the firm, he/she may be a partner and jointly liable
to creditors of the firm, 2. the rights and obligations of partners to each other arise from
the partnership agreement, the statute and the equitable concept of the fiduciary, and
3. the Partnership Act determines partners’ rights, duties and interests, if not included in
the partnership agreement.

31. Which statement regarding persons of unsound mind and minors is incorrect? if a
partner who is a minor enters into a contract with a third party on behalf of the firm,
the minor is liable as far as private assets are concerned. Correct: 1. a partner of
unsound mind is capable of binding the firm and of being bound by co-partners, unless
proven that he/she was of unsound mind when the partnership was entered into and
the other partners knew this, 2. a creditor who has obtained judgment against the firm
may not seize the minor’s separate property, and 3. a minor will become liable as an
ordinary partner when he/she attains majority the partnership is not repudiated within a
reasonable time.

32. Which of the following statements is not correct? Incorporated limited partnerships
have been introduced in all Australian States and Territories. Correct: 1. as an agent, a
partner is able to bind the other partners and, as principal, be bound by the actions of
the other partners, 2. in New South Wales, Victoria, Queensland, South Australia,
Western Australia and Tasmania provision for limited partnerships is made in the
Partnership Act, and 3. the Partnership Act provides that the rules of the common law
and equity are to continue in force except insofar as they are inconsistent with the Act.

33. Which of the following statements regarding the written law is incorrect? The
Corporations Regulations 2001 (Cth), reg 2A.1.01 does not set a maxima of partners
for architects and accountants. Correct: 1. Under s 115 of the Corporations Act 2001
 (Cth), the maximum number of persons who may form a partnership for the acquisition
of gain is 20, 2. Under the Corporations Regulations 2001 (Cth), reg 2A.1.01,
partnerships of more than 20 partners may be formed for certain professions/callings,
and 3. The Corporations Regulations 2001 (Cth), reg 2A.1.01 sets a maxima of partners
for medical and legal practitioners, veterinary surgeons, patent and trademark
attorneys, sharebrokers and stockbrokers and pharmaceutical chemists.

34. Which is incorrect statements regarding limited partnerships? A limited partner does
not have the right to inspect the books of the firm. Correct: 1. A limited partner must
not take part in the management of the business and does not have power to bind the
firm, 2. If a limited partner partakes in the management of the business, he/she is liable
as a general partner, and 3. Any differences arising as to ordinary matters connected
with the firm’s business are to be decided by a majority of the general partners.

35. Which of the following statements regarding dissolution of partnership is incorrect? A

firm’s assets as contributed by partners to make up capital losses need not be applied
to pay the firm’s debts/liabilities to non-partners. Correct: 1. In the event of
dissolution, losses must be met first out of profits, followed by capital, then by partners
in proportion to their share of profits, 2. After dissolution, each partner is entitled to
advances and residue by the firm, and 3. After the dissolution, each partner’s authority
to bind the firm continues, so far as necessary for winding up partnership affairs and
completing unfinished transactions.

36. Which statement regarding an outsize partnership is incorrect? Its partnership

agreement is invalid. Correct: 1. it has more than 20 partners, 2. it is liable to a criminal
penalty ($500), and 3. its agreement does not affect the enforceability of contracts or
other arrangements made.

37. Which statement is incorrect? Partnership may be formed in order to undertake a

single business transaction. Correct: 1. Carrying on a business implies repetition (Smith
v Anderson (1880) 15 Ch D 247), 2. In Khan v Miah [2000] 1 WLR 2123 it was held that
work, such as finding, acquiring and fitting out a shop/restaurant, is undertaken with a
 view to profit, and 3. In Keith Spicer Ltd v Mansell [1970] 1 All ER 462 it was held that
ordering goods and opening a joint bank account in contemplation of a business are
insufficient for a partnership.

38. Which legislation controls the actual registration of the firm name? Business Names
Registration Act 2011 (Cth).

39. Which court finding is incorrect? In Mercantile Credit Co Ltd v Garrod [1962] 3 All ER
1103, damages were not recovered even though, from the plaintiff’s perspective, the
sale of the car was within the usual course of business. Correct: 1. In Goldberg v Jenkins
(1889) 15 VLR 36, the firm was not bound to the transaction because borrowing money
on behalf of the firm at over 60% interest when comparable rates were between 6% and
10% was beyond ‘the usual way’, 2. In Construction Engineering Pty Ltd v Hexyl Pty Ltd
(1985) 155 CLR 541, Hexyl was not liable because the construction contract appeared to
be between Construction Engineering and Tembel, 3. If judgment is obtained against one
or more partners of a firm, no action may be taken against the other partners, even if
satisfaction cannot be obtained from the partner(s) sued.
 QUIZ 1
1. Reporting obligations: What is a binding precedent?
A. A decision of another court that is of persuasive authority
B. With respect to Australia, it is a decision of the UK Supreme Court
C. A decision of a court that binds judges in a lower court in the same court hierarchy
D. A decision of a different court on the same subject matter

2. Which are some of the main features of the Electronic Transactions Act 1999 (Cth):
A. Validity of electronic transactions
B. Recognition of writing by electronic
means
C. Recognition of retaining information in electronic form
D. All of the above

3. Peter verbally offers Tara his car for $5000. Tara refuses saying it’s not worth that, but : she
will pay $4000. What is the status of Peter’s first offer?
A. It can still be accepted by Tara
B. Peter should have made it in writing so Tara had proof he made it
C. Peter needs to make it again
D. It has lapsed because of Tara’s counteroffer

4. What was one of the “practical benefits” received by Roffey in Williams v Roffey Bros &:
Nicholls (Contractors) Ltd [1990] 1 All ER 512?
A. Williams did not sue Roffey for breach of contract
B. Roffey had no reason to doubt Williams would not complete his side of the bargain
C. Roffey received additional payment from Williams
D. Roffey did not need to find another subcontractor

5. Changing the Constitution: Section 128 of the Commonwealth Constitution provides

that the Constitution can be: changed by referendum that requires a “yes” vote:
A. In at least 2 States
B. In at least 3 States
C. In the ACT and NT (the Territories)
D. By the majority of voters and in a majority of States

6. Substantive and procedural law: Substantive law:

A. Refers to actual rights under the law
B. Is subsidiary to procedural law
C. Refers to the formal steps to enforcement of rights and duties under the law
 D. Includes the rules of evidence

7. In which of the following situations is the offer most likely not to have lapsed?
A. Where Wrench had an option to purchase land but, unknown to Wrench, the seller
died: prior to Wrench’s acceptance
B. Where Carter, a prospective purchaser of land, makes a counter-offer that is rejected and:
then states that he will accept the earlier offer
C. Where no time was stated for acceptance by Jane, but Ben does not accept within a :
reasonable time
D. Where Jim has become overtaken by insanity prior to accepting

8. Reception of English law in Australia: Which Latin phrase explained the rationale for
applying English laws to the new Colony of : New South Wales?
A. actus reus
B. terra nullius
C. ratio decidendi
D. prima facie

A. Andy promises Ellie $100 on her 21st birthday. If this promise was contained in a simple :
contract, the legal position is that such a promise is:
B. Never binding as it must have consideration supplied by Ellie Binding only if Ellie and Andy had
contractual capacity
C. Sometimes binding but only after Ellie turned 21
D. Always binding because promises should not be broken

9. In Elizabeth City Center Pty Ltd v Corralyn Pty Ltd (1995) 63 SASR 235, the option to :
exercise renewal of the lease:
A. Was effective because of the operation of the postal rule
B. Effective communication of the renewal requirement had not been made
C. Negated the postal rule because the notification was not sent by certified mail as : required
D. b and c

10. Interpretation – extrinsic materials: In interpretation, extrinsic materials:

A. Are required to be referred to by a court
B. Are only to be referred to where the meaning of the provision is ambiguous
C. Are allowed to be referred to by a court
D. Are to be referred to regardless of the length of delay this will cause proceedings

11. With respect to revocation, which of the following statements is not correct?
A. Revocation need not be in words
B. The offeror must personally communicate the revocation to the offeree
C. The offeree may accept the offer until such time as they become aware of the
revocation
D. Where an offer has been made to the world at large, revocation does not need to be
seen : by everyone in order to be effective

12. Which of the following circumstances are likely to affect the consent of one or both :
parties to a contract:
A. Mistake
B. Duress and undue influence
C. Lack of writing
D. a & b

13. Simon and Stella, both of full legal capacity, agree to go on a date. Stella is to pay for the :
dinner, but she is running late and does not meet Simon at all. Simon is embarrassed and
: angry and calls Stella the next day to threaten to sue her for his taxi fares and dinner :
expenses. Will Simon succeed in his claims?
A. Yes, because there is agreement
B. Yes, because there was consideration in that Simon incurred taxi and dinner expenses
C. No, because Simon and Stella did not intend the agreement to create legally enforceable
: obligations
D. No, because there was no genuine consent of either party

14. Royal Assent: Who or what gives Royal Assent to an Act of the Commonwealth Parliament?
A. The Queen
B. The Governor-General on the Queen’s behalf
C. The Prime Minister
D. Cabinet

15. In Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd [2016] HCA 26 why did the :
High Court disagree with the decision of the Victorian Court of Appeal in finding there was
: no case for promissory estoppel:
A. Even though the elements of estoppel had been proven no remedy was provided as the
: initial claim was brought too late and equity does not assist claims lodged with unreasonable :
delay
B. The plaintiff could not establish that the statement that it would be “looked after at :
renewal time” was capable of conveying to a reasonable person that it was a genuine offer :
of a further lease
C. There was a need for certainty as to what the parties had agreed on at the end of the :
negotiations to found a claim for estoppel
D. B&C

16. Which of the following is not a way in which an offer can be terminated?
A. Revocation after acceptance has been mailed where the postal rule applies
B. Lapse
C. Lapse where no time was stipulated
D. Revocation before acceptance

17. Farah agreed to take care of an elderly woman Marge and in return was provided with a :
house to live in that was promised by Marge to be Farah’s after she died. Farah cared for
the : woman for 23 years, but upon Marge’s death Farah discovered that their oral
agreement : was never put into writing. The woman’s son moved into the house and
Farah made a claim : to the house. The court:
A. Is likely to reject Farah’s claim to the house as she provided no consideration of any legal:
value
B. Is likely to reject Farah’s claim to the house as the contract was not set down in writing as :
required
C. Is likely to order specific performance of the oral agreement because simple contracts do :
not need to be in writing
D. Is likely to apply the doctrine of part performance

18. Which of the following is most likely to be considered an offer?

A. A catalogue of books with discounted prices shown
B. A radio advertisement for drinks at “the coolest little pub in Victoria”
C. “I’ll pay you $3,000 if you complete a total rewrite of chapters 12 and 15 of this :
textbook.”
D. “Would you allow me to pay off the $2,000 over six weeks?”

19. Australian Constitution : Which Act established the federal legal and political system and
converted the separate : colonies into states?
A. Commonwealth of Australia Constitution Act 1900
B. The Australia Act 1986
C. Statute of Westminster Adoption Act 1942 (Cth)
D. statute of Westminster 1931 (IMP)

20. Contracts voidable by a minor do not include:

A. Those not binding unless ratified by the minor during their
minority
B. Those binding unless repudiated by the minor during their minority
C. Those binding unless repudiated by the minor within a reasonable time after attaining : their
majority
D. Those not binding unless ratified by the minor within a reasonable time of attaining : majority

21. Where an agreement has been made during the course of trade or commerce between
businesses, the situation will commonly indicate that the parties:
A. intended to create moral binding relations based on trust
B. intended to create binding legal relations
C. intended that there was no contract unless clearly specified in the agreement
D. intended to avoid court proceedings by inserting exclusion clauses in the agreement

22. Which of the following is not a class of persons regarded by the law as wholly or partly:
incapable of entering into legally binding contracts?
A. Intoxicated persons
B. Minors
C. Women
D. Mentally incapacitated persons

23. Separation of powers: Which of the following is not one of the three branches of the Commonwealth
government: in Australia:
A. The Governor
B. The executive
C. The judiciary
D. The legislature

24. Criminal offences: Which of the following is incorrect with respect to criminal offences?
A. Indictable offences are generally the more serious offences.
B. The prosecution must prove its case beyond reasonable doubt.
C. Summary offences are determined by a magistrate without a jury.
D. A committal hearing is held before most summary offence matters.

25. Federal system: Which of the following statements is correct?

A. Australia is a federal system, with one Constitution and a number of non-
law-making: States and Territories.
B. Australia is a unitary system, where the States and Territories are constrained in their :
law-making powers by the Commonwealth.
 C. Australia is a federal system, with two legal systems for each citizen.
D. Australia is a federal system with three branches of government: the judiciary, the :
executive and the Crown.

26. Native Title: Native Title was first recognised in which of the following cases?
A. Mabo v State of Queensland (No 2) (1992) 175 CLR 1
B. Wik Peoples v State of Queensland (1996) 187 CLR 1
C. Brandy v Human Rights and Equal Opportunity Commission (1995) 183 CLR 245
D. Commonwealth v Jones (1901) 174 CLR 25

27. Separation of powers: Which of the following statements about separation of powers in Australia is
correct?
A. The judiciary is the body that makes statute law.
B. The legislature is the branch that declares what the law is and interprets the law.
C. The executive is the body that administers the law.
D. The legislature is the body that resolves disputes concerning the application of law and :
polices the law.

28. The postal acceptance rule:

A. Can be negated where the mailed offer was misdirected and the misdirection was the :
fault of the offeror
B. Can be impliedly excluded by offeror specifying actual receipt of acceptance
C. Can create a situation where a revocation is validly made days after the offer has
actually : been accepted
D. May apply to electronic communications, such as email, if the offeree chooses

29. Jack was subpoenaed to give evidence on Rods behalf. Jack claimed Rod promised him :
$2000 to give evidence. Would Jack recover that money?

A. No - Jack’s public duty is to give evidence in response to that subpoena.

B. No this is illegal
C. Yes, if Rod put that in writing
D. Always binding because promises should not be broken

30. Law Reports: Where are decisions of the High Court of Australia found?: only online
 A. In the High Court reports
B. In the Commonwealth Law Reports
C. In the Common Law Reports

31. The Age of Majority Act 1977 (Vic) reduced the age for contractual capacity of a minor
A. 16
B. 18
C. 21
D. 25

32. Delegated legislation: An example of delegated legislation is the:

A. Partnership Act 1958 (Vic)
B. Local Government Act 1993 (Qld), s 25
C. Corporations Bill 1988 (Cth)
D. Corporations Regulations 2001 (Cth)

33. The Executive Power : The Executive power is administered by:

A. The Senate and the House of Representatives
B. The Queen, the Prime Minister and the Cabinet
C. The Governor, the Senate and the House of Representatives
D. The Judiciary, the Senate and the House of Representatives

34. Delegated legislation: Which of the following is not correct?: Delegated legislation:

A. Is subordinate legislation
B. Is made under the authority of an Act of Parliament
C. Often contains more detailed rules than those of the associated Act
D. Can only be made by Government Ministers

35. Common law: Which one of the following statements about common law is correct?

A. Common law is judge made law

 B. Common law overrides statute law
C. Common law is made by Parliaments
D. Common law and equity are the same types of laws and provide the same
remedies

36. In Ashton v Pratt [2015] NSWCA 12 what was the main reason for the court deciding that : there was
no intention to create a legally binding contract?
A. The agreement was not reduced to writing
B. The verbal language of the agreement greatly lacked detail from either party and
did not : indicate definite obligations
C. Pratt lacked the necessary contractual capacity due to his age and ill health
D. The plaintiff had been a worker in the escort business and not morally entitled to any:
monies under the verbal agreement

37. Public and private law: Which of the following is not classified as private law?

A. The law of contract

B. Criminal law
C. The law of property
D. Corporations law

38. Criminal proceedings: An indictable offense is:

A. A more serious civil wrong
B. A less serious civil wrong
C. A more serious criminal offence
D. A less serious criminal offence

39. A qualified acceptance may also be known as a/an:

A. Counteroffer
B. Invitation to treat
C. Condition subsequent
D. Conditional agreement

40. Local or Magistrates Courts:

A. Are the lowest courts in the state hierarchy
B. Are the lowest courts in the federal hierarchy
C. Are an intermediate court
D. Are above Country Courts in the hierarchy
41. The legislature: Exclusive powers are those that:

A. Can be exercised by either the Commonwealth or the States

B. Can be exercised only by the Commonwealth
 C. Can be exercised only by the States
D. Where there is any inconsistency, the Commonwealth law will prevail

42. Which of the following statements about contracts is true?

A. A contract must be in writing to be enforceable
B. It is a common law requirement that certain contracts are in writing
C. A simple contract is another term for an oral contract
D. It is a statutory requirement throughout Australia that some contracts must be in
writing: and others must be evidenced in writing

43. Sources of law: Sources of law in Australia do not include:

A. Consolidating statutes
B. Judge-made law
C. Repealed statutes
D. Equity

44. Which of the following statements about acceptance is false?

A. Acceptance can be by telephone or email or conduct
B. Acceptance can be in any manner chosen by the offeree
C. Acceptance must be unconditional
D. Acceptance can only be made by the person/s to whom the offer was made

45. The main legal issue in Felthouse v Bindley (1862) 11CB (NS) 869 was:
A. the contract was formed due to offer and acceptance being proven
B. An offer to sell a horse was simply an invitation to treat
C. generally silence /lack of action does not constitute acceptance of an offer
D. An offer can be revoked at any time prior to acceptance
 46. Ratio decidendi*: The ratio decidendi of a case:
A. Is the full judgment of all judges
B. Is a statement of principle that is important, yet not crucial to the decision
C. Is the reason given for deciding the case
D. Is contained within the last published judgment

47. Hierarchy of courts: Which of the following is higher than the Federal Court of Australia in the
federal court : system?
A. Supreme Court
B. Magistrates Court
C. High Court
D. Federal Magistrates Court

48. Which of the following statements about consideration is correct?

A. A gratuitous promise is enforceable if contained in a simple contract
B. Good consideration may consist of performing an existing legal obligation
C. Good consideration can be present, future and even “past”
D. Consideration need not be adequate

49. Civil and criminal law: Which of the following is not correct with respect to civil law?
A. The typical purpose of a civil action is to obtain damages
B. Under civil law, one person may sue another who has committed a wrongful act.
C. Interrogatories and discovery are procedures that are available in civil proceedings.
D. The document filed by the defendant is called a writ.

50. If one party has threatened another party to enter into a contract, the element that is : missing is:
A. Acceptance
B. Intention to create legal relations
C. Real/genuine consent
D. Legality

51. Court hierarchy: The highest court in Australia is:

A. The Privy Council
B. The Federal Court of Australia
C. The High Court of Australia
D. The Supreme Court of Australia

51. With respect to the contractual capacity of corporations, s 124 of the Corporations Act : 2001 (Cth)
gives them:
A. Only the capacity to make contracts approved by shareholders in general meeting
B. The capacity to make contracts but only in the state or territory where the corporation : conducts its
 business
C. All the legal capacity of a natural person (together with some additional powers that can : only be
exercised by a corporation)
D. Different capacity to contract depending on whether the corporation is public or : proprietary

52. The High Court’s decision in Waltons Stores (Interstate) Ltd v Maher (1988) 164
CLR 387:
A. Extended the doctrine of promissory estoppel such that it applies even where
the: promisor does not create or encourage the false assumption of the
promisee
B. Extended the doctrine of equitable estoppels such that it applies even where
there is no : pre-existing contractual relationship between the parties
C. Restricted the doctrine of equitable estoppel such that, where the contract is of a :
commercial nature, the doctrine will not apply
D. Restricted the doctrine of promissory estoppel such that where an innocent third party :
has been affected, no remedy can be ordered
53. Which of the following statements about bilateral and unilateral contracts is not correct?

A. More than one party is required for both bilateral and unilateral contracts
B. A unilateral contract does not require consideration but simply a promise to
perform an : act is sufficient
C. Both parties are obligated to perform their promises in a bilateral contract
D. Only one of the parties is obligated to perform an action in a unilateral contract

54. Why are illusory terms in a contract problematic?

A. they are vague or ambiguous so they fail to create a legal obligation

B. They exist in one party’s imaginary belief only
C. Courts have difficulty interpreting them
D. Interpreting them in any way at all could result in an unfair decision
55. Business law: Which of the following no longer regulates business or commercial law?
A. Trade Practices Act 1974 (Cth)
B. Competition and Consumer act 2010 (cth)
C. Corporations Act 2001 (cth)
D. The law of contract
56. Sources of law – statute: Which of the following is incorrect?: Statutes may:
A. Codify the law
B. Bring new laws into existence
C. Repeal laws
D. Not overrule existing common law
57. The rule of law: Which of the following concepts is closely related to the rule of law?
A. Representative government
B. Responsible government
 C. Due process
D. Separation of powers
58. Interpretation: Which of the following is not correct?: With respect to interpretation, the main
approach used by courts is:
A. The literal approach
B. The purposive approach
C. The requirement that the natural and ordinary meaning to be given to words
D. The courts are free to exercise judicial discretion
59. In which of the following types of agreements is there a presumption that parties intend :
to be legally bound?
A. Partnership between husband and wife
B. Living arrangement between mother and daughter
C. Agreement between father and daughter
D. Dinner arrangement between friends
60. Doctrine of precedent: With respect to a case being decided under the appellate jurisdiction of the
County Court of : Victoria, a decision of the appellate division of the District Court of New South
Wales on the : same Commonwealth legislation is:
A. Strictly binding
B. Persuasive
C. Available for consideration if required
D. Not of any consequence
61. In Elizabeth City Centre Pty Ltd v Corralyn Pty Ltd (1995) 63 SASR 235, the option to : exercise renewal
of the lease:
A. Was effective because of the operation of the postal rule
B. Effective communication of the renewal requirement had not been made
C. Negated the postal rule because the notification was not sent by certified mail as : required
D. B&C
62. Sally puts up a sign stating that she has lost her dogs and will pay a reward of $100 for : their return
to her within three days. Which of the following statements is correct?
A. Jim will not get the reward because he returned the dog but did not verbally : communicate
acceptance of the offer to Sally
B. Nadia will get the reward as she returned the dog to the RSPCA
C. Chang will not get the reward because he returned the dog knowing it was Sally’s, but : was
unaware of her offer of a reward
D. Isabel will get the reward because she was only one day late in returning the dogs (and to : not
give her the reward would be unreasonable)
63. Which of the following is not one of Brennan J’s six criteria for estoppel from Waltons: Stores
(Interstate) Ltd v Maher (1988) 164 CLR 387?
A. The promisor induced an assumption
B. The promisee acted in reliance on that assumption
C. The promisor knew or was reckless as to whether the promisee intended to act in that
D. The promisee will suffer a material loss if the assumption is not fulfilled
64. Constitution: Which of the following statements about constitutions in Australia is NOT correct?
A. The Commonwealth Constitution sets out the relationship of the Commonwealth : government
with the States
B. A written constitution is a feature of a federal legal system such as Australia.
C. The Commonwealth Constitution sets out the powers of the Commonwealth government.
 D. Australia has one constitution only (States have no constitutions).
65. Section 51 powers: Which of the following is not an area that the Commonwealth Parliament has
power to : legislate on under s 51 of the Commonwealth Constitution?
A. Education
B. Bankruptcy and insolvency
C. Foreign corporations
D. Banking and insurance
66. A contract dividing the proceeds of a cocaine importing venture that has no technical : defects and
that is not overly harsh/unfair to either party is:
A. Valid
B. Void
C. Voidable
D. Unenforceable
67. Sources of law: The two main types of law in Australia are
A. Common law and judge-made law
B. Statute law and judge-made law
C. Statute law and Acts of Parliament
D. Common law and equity
68. Constitution: Section 51 Commonwealth Constitution grants what type of law making power to the
: Commonwealth Parliament?
A. Concurrent powers
B. exclusive powers
C. residual
D. inherent
69. Simone advertises a car for $4,000. John responds to the advertisement and asks : whether Simone
will take $3,000. Simone says ‘no’, but that she will hold the offer open for : a week. The next day
she sells it to Samantha. : Which of the following statements is correct?
A. Simone has to hold the offer open as she made a promise
B. Simone does not have to hold the offer open as no consideration was given
C. John’s question is an invitation to treat
D. Simone does not have to hold the offer open as John made a counter-offer
70. Which of the following statements about the contractual obligations of government policy
proposals is incorrect?
A. The courts tend not to assign contractual obligations to government policy promises
B. Where the government enters into an ordinary commercial agreement to buy services, : the law
of contract regulates this agreement
C. Where the government makes a policy promise and a citizen relies on it the court will : always
regard that policy commitment as a binding contractual obligation
D. In Australian Woollen Mills Pty Ltd v Commonwealth of Australia (1954) 92 CLR 424, the :
government’s wool subsidy was found to be an administrative scheme and not contractual :
obligations
71. Section 15AA of the Acts Interpretation Act: Section 15AA of the Acts Interpretation Act 1901 (Cth)
A. Is an inflexible section
B. Provides that express mention of one matter suggests that other matters are excluded
C. Provides that where there is a conflict between a specific and a general provision, the : specific
provision should be applied
D. Provides that the purpose of the statute or its object should be the preferred method of :
determining the statute’s meaning
 QUIZ 2
1. Which of the following is not true? A signature on a contract containing an
exemption: clause:
A. Will not guarantee the effectiveness of the clause where the doctrine of non est factum :
applies
B. Incorporates the exemption clause into the contract
C. Guarantees that an exemption clause will be effective
D. Will be effective even if one party did not read the contract

2. Which of the following is correct?

A. There cannot be any legal remedy where a contract is unenforceable
B. There can be no remedy where a contract is not terminated
C. There can be no remedy where a contract remains on foot after a breach
D. Damages must not be too remote from a breach

3. Which of the following is not correct? Restitution:

A. May be awarded where there is less than substantial performance
B. Is said to be based on unjust enrichment
C. Is subject to a number of defences, such as estoppel
D. Was not awarded in the case of Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 as : the contract
was not in writing as required by statute and therefore not enforceable

5. Fraser crashes his car with his friend Angus as a passenger. Angus is injured. Angus was :
not wearing a seatbelt. Which of the following is not correct?
A. Liability would likely be apportioned between Fraser and Angus
B. Damages cannot be apportioned for breach of contractual duty of care where
there is : contributory negligence
C. Damages awarded to Angus, if any, would be reduced by his contributory
negligence
D. Angus’ contributory negligence relates only to his own safety, not to that of others

6. Which of the following would not constitute the unfair practice of harassment or :
coercion under the Australian Consumer Law? Where there is a debt in connection
with the : possible of goods and the creditor:
A. Consciously calculates to intimidate the debtor with the content of her demands
B. Tells the debtor, among repeated demands for payment give the debtor a discount for
: early payment
C. Makes demands constantly in order to exhaust the debtor
D. Chooses particularly threatening demands in order to demoralise the debtor

7. When considering whether a contract is a standard form contract, the court does not :
have to consider:
A. The bargaining power of the parties as unequal bargaining power does not constitute a :
special disadvantage
B. Whether both parties had the opportunity to negotiate the terms of the contract
 C. Whether one party’s vicarious liability for its agents is limited
D. Whether the terms of the contract take into account the specifics of the particular :
transaction

8. Which of the following is not an example of an unfair contract term?

A. Stan is not allowed to terminate the contract, but Flo is
B. The specifics of Rose’s situation were not taken into consideration by Melton Apartment :
Construction Ltd
C. Interpretation of the contract is only on the terms of Big Guns Insurance Co
D. The burden of proof for all matters rests on Ms Smith

9. Which of the following is not true? Economic duress:

A. Is a threat to the innocent party’s economic interests
B. Permits the threatened party to avoid the contract
C. Needs to be distinguished from a legitimate level of commercial pressure – an example : of an
actionable level of pressure is a threat to break a contract without any legal : justification in order to
extract money from an innocent party
D. Was found in North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd [1979] 1 QB : 705 and the
threatened party was able to recover the payments made under duress

10.In Barton v Armstrong [1976] AC 104, the court held that:

A. The defendant’s threats against the plaintiff’s life were insufficient to constitute duress : as the
plaintiff had financial reasons for entering into the contract
B. The defendant’s threats against members of the plaintiff’s family were insufficient to : constitute
duress as they were not “immediate” family
C. The threats to the plaintiff’s life contributed to the plaintiff’s decision to sign the : contract and
therefore constituted duress
D. The threats to the plaintiff’s life were not sufficiently plausible to create a real : apprehension in the
plaintiff constituting duress

11. Which of the following statements is correct with respect to mistake?

A. Mistakes of fact include bilateral mistake, common mistake and mutual mistake
B. Any mistake by either party will always void a contract
C. Rectification is a remedy for certain types of mistakes in written contracts
D. If a party mistakenly signs a document unaware of the nature of what they are signing : they will be
bound

12.Why are late payment charges on credit cards not penalties?

A. Banks penalties on cards are legitimate to cover their costs
B. They are considered penalties but in Paciocco v ANZ Banking Group Ltd the court held : they were not
C. The Reserve Bank states they are not
D. They are considered just a consequence of the use of credit

13.Where a loan contract allows for termination by the loan provider in the event of default : by the
borrower, this is:
 A. An implied power to terminate
B. An express power to terminate
C. A condition precedent
D. A release

14.Which of the following is not a way that a person seeking to rely on an exemption clause : can
show that the clause has become part of the contract?
A. By showing it is in writing and the other party has signed the contract
B. By showing it is in writing in a document a reasonable person would expect to contain : contractual
terms and was brought to the other party’s notice
C. By showing that the parties had previously contracted on terms that included the : exemption clause
and that they intended to contract on the same basis
D. By showing it was brought to the notice of the other party at the time of, or subsequent : to,
entering into the contract

15. Non est factum means:

A. It is not [my] deed
B. It is not true
C. Mistake of fact
D. It is unknown

16. Tom agrees to fix Richie’s car for $1,000. Richie pays a deposit of $200 and Tom :
guarantees the job will be completed within two weeks. Before Tom commences the
repairs, : the car is stolen from Richie’s locked garage and destroyed by fire. Richie
demands the : return of his $200 deposit and Tom refuses to give it to him. Which of
the following is not : correct?
A. The contract is automatically terminated
B. Tom is no longer obligated to fix Richie’s car
C. Under the Australian Consumer Law and Fair Trading Act 2012 (Vic), Tom is entitled
to:retain the $200 deposit
D. Under the Australian Consumer Law and Fair Trading Act 2012 (Vic), Tom is entitled to :
retain the portion of the $200 deposit he spent on parts and other relevant expenses, if
any

17. Which of the following is not correct? An action in restitution:

A. Is often brought where one party has been unjustly enriched at the expense of the other
B. Cannot be brought where there is no contract between the parties
C. Can be brought where the contract between the parties is unenforceable
D. Can be brought where there has been only part performance

18. Chris and Tama buy a noodle bar from Udon4U Pty Ltd. In the course of negotiations,
: Udon4U Pty Ltd’s agent, Nadia, misrepresents the turnover of the noodle bar,
stating an : amount that is double the actually turnover. Nadia herself received this
 information on : turnover from Geoff, a director of Udon4U Pty Ltd.: In making the
misrepresentation, what sections has Nadia likely contravened?
A. As she merely passed on the information with no intention to procure a contravention
: she probably will not be personally liable
B. Section 2(1)
C. Section 18
D. Section 52
19. Which of the following is not one of the three elements of an unfair term under s
24(1) : of the Australian Consumer Law? Where:
A. It would cause a significant imbalance in the parties’ rights and
obligations
B. The term is not transparent
C. It is not reasonably necessary to protect the interests of the disadvantaged party
D. It would cause detriment to a party if it were applied

20. Which unfair practice involves participation in a trading scheme where persons
at the : top receive most of the benefits?
A. referral selling
B. pyramid selling
C. unconscionable conduct
D. misleading and deceptive conduct

21. Janey takes her fur stole to the dry cleaner. When she returns to collect it, there is a :
black mark in the shape of an iron in the middle of her stole and it is ruined. The dry
cleaner : tells Janey that he is not liable for the damage to her fur stole as there was
an exemption : clause in their agreement. Which of the following is not correct?
A. If the exemption clause was merely contained within a notice on the wall, the dry :
cleaner will be liable for the damage
B. If the exemption clause was on the dry cleaning docket Janey was given and she was
told : “don’t worry about this, it’s just the docket you have to give us when you come to
collect : your stole”, the dry cleaner will not be able to rely on the exemption clause
C. In order for the exemption clause to be effective where it was not in a signed
document: it had to have been brought to Janey’s attention
D. If the exemption clause was on the dry cleaning docket Janey was given rather than a :
formal written contract, the onus will be on the dry cleaner to prove that Janey was
aware it : contained conditions that would modify the agreement

22. Which of the following statements is correct?

A. An exemption clause is a term that completely excludes one party’s liability
B. An exemption clause is a term that excludes or limits the liability of one or more parties
C. An exemption clause limits liability to a certain monetary amount
D. An exclusion clause limits one party’s liability whereas an exemption clause limits all:
parties’ liability

23. Which of the following is not usually recoverable by way of damages?

A. Compensation for mere inconvenience or disappointment
B. Loss that is difficult to estimate
C. Nominal loss
D. Expenses incurred in reliance on the other party’s promise to perform

24. A party repudiates a contract when

A. They decide to terminate it
B. They are no longer able or are unwilling to perform their
obligations
C. The other party decides to terminate it
D. They take too long to perform an obligation that has a time limit under the contract, such
: as payment of rent

25. Chung is looking to purchase a carwash business from Terry. Terry tells Chung that
she : serves 100-150 cars per day and that she has just concluded an agreement to
service the : fleet of cars of a local business. In reality, Terry has only served
around 15 cars per day since : her customer service received a bad review in the
local newspaper and a competing carwash : business opened one street away.
Terry intends for Chung to buy her business based on : what she has stated. This is
an example of:
A. unilateral mistake
B. negligent misrepresentation
C. fraudulent misrepresentation
D. mutual mistake

26. Undue influence differs from duress in that:

A. With undue influence, the contract is not voidable but void
B. With undue influence, no unlawful act is required
C. Duress arises only within a closed list of special fiduciary relationships
D. With undue influence, actual physical violence is required

27. Which of the following constitutes referral selling?

A. Jaz is approached by her neighbor to join the sales team of Thames Beauty Products. :
Thames sells its products door-to-door through agents and is a close-knit family type of
: company. Agents that introduce other agents to “the family” are rewarded with a
finders’: fee. It is only $500 to join the Thames family, and Jaz only has to spend $400 of
products in: her first month
B. Jaz starts work at a chemist and notices that the chemist, as retailers often do, puts a :
sale price on a sticker on most of the products in the shop. However, the chemist does
not: put the sale price sticker on top of the original price sticker and when customers
bring the : products to the counter, the chemist tells them that unfortunately there has
been a mistake, : the true price is the higher price
C. Jaz approaches a salesperson on the forecourt to buy the car package she saw :
advertised on television and is told that there were only two cars for sale as a part of
that : deal and there are now none left. The salesperson tells Jaz that she would look
much better : in the convertible model and although there is no deal on that car, it is
only $50,000 more
D. Jaz purchases a painting through a new art gallery that has just opened in town. The :
price is high and Jaz is at first uncertain about the expense, but the art dealer promises
Jaz a : commission on sales to any of Jaz’s friends who she sends along to the gallery.
Jaz has a lot : of art collector friends so is sure that she will receive some commission
from the gallery in : the near future.

28. In Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107:
A. Blue Circle was a sub-contractor whose worker was injured, and privity precluded the :
worker from getting an indemnity under the contract
B. It was held that the subcontractor could get an indemnity even though the:
subcontractor had given no consideration under the contract
C. In Deane J’s view Trident, the insurance company, had an obligation to the
subcontractor because otherwise Trident would be unjustly enriched
D. The majority were of the view that the “settled and fundamental” doctrine of privity of :
contract should not be overturned by the court

29. Jacq and Jack robbed the Commercial Bank. Jacq thinks that Jack was too aggressive :
with the tellers and the robbery could have gone very wrong. Jacq is now refusing to
give : Jack his share of the takings. Which of the following is correct?
A. Jack provided consideration in the form of performing the robbery and is entitled to his :
share
B. Under the principle of freedom of contract, Jacq and Jack are entitled to agree to :
whatever they wish and the contract will be enforceable
C. The contract involved the commission of a crime and is therefore illegal and :
unenforceable
D. The contract will be unenforceable if the courts deem it to be against public policy

30. If one party has completed its obligations under the contract, and the other has not:
A. The contract can be terminated by mutual agreement
B. The contract cannot be terminated by simple agreement without consideration
C. The contract can be terminated if it is put down in writing; no further consideration is : require
 D. The contract can be terminated where one party promises to abandon their rights under
: the contract and the other party promises to do the same

31. Ella contracted Anasaki to build a balcony for her house to certain specifications.
When : Anasaki had finished, Ella was shocked to see that the balcony was much
bigger than she : had specified. Ella refused to pay Anasaki. Which of the following is
incorrect?
A. Ella has received some benefit
B. The benefit Ella received was at Anasaki’s expense
C. It would be unjust for Ella to have to pay any money for a balcony that was not built to :
her specifications under the contract
D. Ella will probably not have to pay the contract price but must pay a reasonable amount

32. Which of the following is an element required for the doctrine of frustration to
operate?
A. Material loss to one party
B. No fault on the part of either party
C. Material loss to both parties
D. Hardship or inconvenience

33. Which of the following is not correct with respect to the prohibition of
unconscionable : conduct within the meaning of the unwritten law?
A. Unwritten law includes equity
B. There is no unconscionable conduct where both parties have made the same mistake in: good
faith
C. There must be a special disadvantage and an exploitation of that disadvantage
D. Unequal bargaining power of itself is enough to constitute a special disadvantage

34. In Jarvis v Swans Tours Ltd [1973] QB 233, where Jarvis was disappointed by, among :
other things, the little dry nut cakes on his holiday:
A. Damages were not awarded
B. Damages were awarded for anxiety and depression
C. Pleasure and enjoyment were not promises of the tour company with respect to the :
holiday in Switzerland
D. Damages were awarded partly for disappointment

35. What does the concept “quantum meruit” mean?

A. The contract is terminated because of a breach by both parties
B. The innocent party would be unjustly enriched if they were able to retain the benefit :
without compensating the party in breach for the “amount he deserves”
C. Voluntarily accepting a contractual benefit
D. Not my deed
36. Cathy and Mel entered into a contract where Cathy was to steam clean seven rooms
in : Mel’s house at $200 per room. After cleaning three rooms, Cathy abandoned the
job for a : more valuable contract. Which of the following is true?
A. As there has been substantial performance, Cathy will be able to enforce all the rights :
conferred by the contract
B. If the exact performance rule is applied, Cathy is entitled to payment for the work she
has : done
C. If the contract is divisible, Cathy is entitled to payment for the work she has done
D. Courts are inclined to treat contracts as indivisible and to require exact performance

37. Chang wants the court to imply an engineering custom into a term of a contract to
which : he is a party. The other party has no knowledge of this custom. It is not
contrary to any of : the express terms of the contract. The court:
A. Will not imply the term in these circumstances
B. May imply the term
C. Will imply the term even if the custom is not very well known
D. Will not imply the term unless it is implied by statute

38. Jong complains that the barbecue he bought is not fit for purpose because the metal :
sides melted the first time he cooked with it. The manufacturer maintains that Jong
should : not have used the barbecue for slow cooking and that it never represented
that the : barbecue would be fit for the purpose of slow cooking. What are the
circumstances in which : the guarantee as to fitness for purpose would apply?
A. Where Jong made known to the supplier that he was going to use the barbecue for slow
cooking meals
B. Where Jong bought the barbecue at auction
C. The guarantee always applies as it is not possible for a manufacturer or supplier to :
contract out of it
D. Where the unfitness for slow cooking of the barbecue was not drawn to Jong’s attention :
prior to his purchase by either the manufacturer or the supplier

39. It is important to distinguish between representations and terms because:

A. Damages cannot be awarded for misrepresentation
B. Damages can only be awarded for fraudulent or negligent misrepresentation
C. There is no remedy for misrepresentation
D. The remedy of rescission is not available for misrepresentation

40. Which of the following is not an enforcement measure under the Australian Consumer
: Law?
A. An order of the court requiring a supplier to publish an advertisement
 B. A disclosure order issued by the ACCC
C. A two-year probation order of the court
D. A notice issued by the ACCC requiring a supplier to substantiate a claim about a
product : they are selling

41.Which of the following is not an exception to privity?

A. Insurance
B. Agency and trust
C. Employment
D. Property law

42. James is going through a difficult time and does not feel he can confide in anyone. :
Eventually he confides in the priest of his church and asks for support. The priest
forcefully : tells James to turn over all of his money to the church or he will be struck
down by : lightening. The priest does not believe that James will be struck down.
James makes the : payments. Which of the following is most likely legal grounds for
James to avoid the : transaction?
A. Mistake
B. Undue influence
C. Duress
D. Misrepresentation

43.In which High Court decision was it said: “[T]here are two relevant circumstances in
which : a breach of contract by one party may entitle the other to terminate. The first is
where the : obligation [is] essential … The second relevant circumstance is where there
has been a : sufficiently serious breach of a non-essential term …we rest our decision in
the appeal not : upon the ground of breach of an essential obligation, but upon
application of the doctrine : respecting intermediate terms.”
A. Gumland Property Holdings Pty Ltd v Duffy Bros Fruit Market (Campbelltown) Pty
Ltd : (2008) 234 CLR 237
B. Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115
C. Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549
D. Shevill v Builders Licensing Board (1982) 149 CLR 620

44. Which of the following are sources of illegality?

A. Statute
B. Statute and common law
C. Statute, common law and equity
D. Statute, common law and parties’ subjective views on morality

45.In which situation is termination not available?

A. Where one party has repudiated the contract
 B. Where one party has repudiated the contract and the other party has ignored the :
repudiation
C. Where one party still has obligations to perform under the contract
D. Where both parties still have obligations to perform under the contract

46. What is the main difference between the misleading or deceptive conduct provisions in :
the Trade Practices Act 1974 (Cth) and in the Australian Consumer Law?
A. The Australian Consumer Law no longer refers to “trade or commerce”
B. The Australian Consumer Law refers to a body corporate
C. The Australian Consumer Law refers to a corporation
D. The Australian Consumer Law refers to a person

47. With respect to consumer guarantees, which of the following is not correct?
A. It is possible to exclude the consumer guarantees in very limited circumstances
B. Remedies for non-compliance with the consumer guarantees depend on
whether there : was a “major failure” or not
C. With respect to fitness for purpose, a “disclosed purpose” relates to the supplier only
–: the manufacturer may make representations to the consumer, but the consumer
cannot : disclose a purpose to the manufacturer and receive a guarantee in return
D. A manufacturer does not need to provide repair facilities or spare parts after a
certain : period

48. Which of the following is not a type of contract illegal at common law on the grounds
of : public policy?
A. Contracts to oust the jurisdiction of the courts
B. Contracts to commit a tort
C. Contracts prejudicial to the public safety
D. Champertous contracts

49. The term “transparency” in unfair contracts means:

A. It is expressed in reasonably plain language that is readily available to the
affected party
B. It is easily interpretable by the court
C. It is easily interpretable by the industry
D. It is capable of only one meaning

50. In Howe v Teefy (1927) 27 SR (NSW) 301 where a leased racehorse was retaken
three : months into a three-year lease:
A. The court was unable to assess the damages because they were uncertain and there
was : no evidence on which they could be assessed
B. The fact that assessment was difficult did not prevent a court from granting
 damages : where the plaintiff had been deprived of something of value
C. Although there was a value attributable to the plaintiff’s loss, it was too remote to be :
recoverable
D. The court was unable to assess the damages because the process was difficult and time
: consuming

51. A written contract allows Joseph, the neighbour of Sonny, to take “as many
strawberries : as he likes each strawberry season”. This contract:
A. Is void for uncertainty
B. Is valid but unenforceable because it is too uncertain
C. Is valid as the parties’ intention is clear
D. Is voidable for uncertainty
E.
52. Which of the following is not an equitable remedy?
A. Injunction
B. Specific performance
C. Restitution
D. Exemplary damages

53. Consumer guarantees as to title are contained within:

A. The “General Protections” chapter of the Australian Consumer Law

B. Section 38 of the Trade Practices Act 1974 (Cth)
C. Chapter 2 of the Australian Consumer Law
D. Sections 51-56 and ss 60-61 of the Australian Consumer Law

54. Which of the following is not one of the four ways a statute may render a contract illegal : set out in
Yango Pastoral Co v First Chicago Australia Ltd (1978) 139 CLR 410? The contract:
A. May require an action that statute forbids
B. May be performed in a prohibited manner
C. May have been made to effect an unlawful purpose
D. May set out an unreasonable restraint

55. Which of the following is not correct with respect to the Australian Consumer Law?

A. It is contained within Schedule 2 to the Competition and Consumer Act 2010 (Cth)
B. It applies to conduct engaged in outside of Australia
C. Owing to the Commonwealth’s limited lawmaking powers under s 51 of the
:Constitution, it applies only to corporations
D. The Australian Consumer Law is applied in each State and Territory

56. Which of the following is not one of the six elements required for a claim of fraudulent :
misrepresentation to succeed?

A. The representation must be fall

B. The representation must have been acted upon by the other party
C. The representation must be one of fact
D. The representation must be in writing (cannot be verbal only)

57. Ben planned the perfect surprise birthday party for his mother: He hired a hall, he hired : a
violinist and he organised catering. Two weeks prior to the event, the violinist called to : cancel.
Ben was so upset at the loss of what he thought would be the highlight of the : evening that he
called the whole event off. Ben lost both the deposit on the hall and the : deposit for the
catering. Which of the following is correct?

A. Ben can sue the violinist for all losses after Ben cancelled the hiring of the hall
B. Ben can recover his hire fees and catering fees as it was not his fault
C. The caterers and hall owners can sue the violinist for losses
D. Ben has a duty to mitigate his losses

58. Sandy is selling her horse, Flossy. Miranda is interested in buying Flossy. Sandy tells : Miranda that
Flossy: : • Is the best little racehorse in Australia: • Has all the registrations, licences and permits required
to race in the current season but : that Miranda should probably get this checked herself: These two
statements are:

A. Mere puff & term

B. Opinion & term
C. Opinion & representation
D. Mere puff & representation

59. Can a person use an official position they hold for their financial advantage?

A. Of course, this is a side benefit

B. Depends on the circumstances
C. The courts are silent on this specific point
D. No because if a contract is involved, this could lead to the promoting of corruption in :
public life

60. Smithy Builders have a contract with Big Bank Pty Ltd which contains the following : clause: “Where
Smithy Builders fails to complete the contract by 7 December, it will pay a : sum of $300,000 in full and final
satisfaction of its liability.” Smithy Builders fails to complete : by 7 December. If Smithy Builders wishes to
avoid paying the sum of $300,000, what must it : prove?

A. That the clause is an unliquidated damages clause

B. That the clause is a penalty clause (to punish the builders)
C. That the clause is a liquidated damages clause
 D. That the clause is a genuine pre-estimate of the loss to Big Bank Pty Ltd

61.Who/what are exempt from the provisions of s18 of the Australian Consumer Law?
A. No-one is exempt
B. Corporations
C. Information providers such as media outlets
D. Advertisers

62. Which of the following is not a way to discharge a contract?

A. By performance
B. By operation of law
C. Through breach
D. By agreement
63. Which of the following statements about the parol evidence rule is true.?
A. It applies only to oral (parol) evidence
B. It does not apply to written contracts
C. It does not apply where it can be shown that the written contract was not
intended to : be a complete record of the agreement
D. It applies only to previous drafts of a written contract
64. In Curtis v Chemical Cleaning & Dyeing Co Ltd [1951] 1 KB 805:
A. The exemption clause in the sales agreement for the drycleaning was effective
B. The exemption clause in the sales agreement for the drycleaning was not
sufficiently : explained to the customer
C. The exemption clause in the sales agreement for the drycleaning was signed and :
therefore effective
65.Which of the following is not correct with respect to mitigation of loss?
A. There is a duty on the person claiming the damages to take all reasonable steps to : mitigate
their losses
B. Where loss could have been mitigated and was not, a person cannot claim that loss
C. The burden of proving that losses were mitigated falls upon the party claiming the :
damages ie the defendant
D. The question of whether a person took all reasonable steps to mitigate is one of fact :
dependent upon the particular circumstances
66.Which of the following is not correct with respect to termination by subsequent : agreement?
A. A subsequent simple contract can cancel a contract where one party has completed their
: obligations and the other has not
B. A subsequent agreement may cancel an original contract
C. A subsequent agreement must be valid to rescind an earlier contract
 D. A subsequent simple contract can cancel a contract where there is still something to be :
done by each party
67.In the case of restraint of trade with respect to employment:

A. The court does not easily allow parties to contract out of their means of
employment
B. Whatever the parties determine will be accepted by the court
C. There are no restraints on employees unless set out in a contract with their
employer
D. These agreements are construed as strictly as restraints of trade between
purchaser and : vendor of a business
68. Krell v Henry [1903] 2 KB 740 illustrated what point?
A. That death can be regarded as frustration
B. That the parties were entitled to a discharge
C. That the parties must perform regardless of circumstance
D. That the parties are discharged if an event occurs which forms the basis of the
contract, : but which prevents performance at no fault of either party
69.Contingent conditions include:
A. Accord and satisfaction and consideration
B. Conditions subsequent and conditions precedent
C. Warranties and innominate terms
D. Releases and mutual terminations
70. Which of the following is NOT a requirement for an assignment of a debt or other
chose : in action under various State statutes?
A. The assignment is absolute and not by way of charge;
B. Fourteen days’ notice in writing is provided to debtor;
C. the assignment is in writing;
 D. If not in writing then notice of the assignment is given by notice to the debtor.
71. The parol evidence rule performs much the same function as:
A. A collateral warranty
B. An oral collateral contract
C. Consideration
D. A merger clause
72. Which of the following is not one of the special relationships in which the
onus of : proving that undue influence was not employed shifts to the denying Party?
A. Parent and child where the child is living independently
B. Solicitor and client
C. Trustee and beneficiary
D. Doctor and patient
73. How may a court view substantial performance of a contract?:
A. The contract is complete, but the uncomplete portion may be allowed for as a
reduction : of the full contract price
B. it will not grant a discharge
C. It will sever the incomplete parts
D. It will treat the contract as breached
74. How is repudiation determined by the court?
A. Subjectively
B. By considering the actions of the repudiating party
C. By viewing the circumstances of the repudiation
D. Objectively
75.How is the Australian Consumer Law structured into the Competition and Consumer Act :
2010 (Cth)?
A. They are separate statutes
B. The Australian Consumer Law is an amendment to the Trade Practices Act 1974 (Cth)
C. The Australian Consumer Law is Sch 2 to the Competition and Consumer Act 2010 (Cth)
D. The Australian Consumer Law is App 3 to the Competition and Consumer Act 2010 (Cth)
76. In considering whether a contract is a standard form contract, which of the following is :
not something that the court must consider?
A. If one of the parties has most of the bargaining power
B. If one party prepared the contract prior to discussing it with the other party
C. If another party was given opportunity to negotiate the terms
D. Whether the price payable takes into account the specifics of the party and the :
transaction
77. In which one of the following cases was it held that for a loss in the contemplation of the :
parties to be recoverable it must be “a serious possibility”, “a real danger”, “liable to result”
: or “not unlikely” to occur?
 A. Hadley v Baxendale (1854) 9 Exch 341; 156 ER 145
B. Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653
C. Koufos v Czarnikow Ltd [1969] 1 AC 350
D. Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272

78. Which of the following is a circumstance where specific performance would be ordered?
A. Where the subject matter of the contract is personal property that is not rare or unique
B. Where a famous actor is to work as a Master of Ceremonies at a function
C. Where the subject matter of the contract is an apartment in a complex of 20
apartments
D. Where a non-famous actor is to wear a gorilla suit every day to advertise a product
79. A consumer contract with respect to unfair contract terms does not involve:
A. The supply of goods or services
B. The sale of land
C. An individual who acquires goods or services or land
D. Wholly for personal, domestic or household use or resupply
80.Which of the following is not a valid assignment of a contract?
A. A bankrupt’s estate passing to the Official Trustee in Bankruptcy
B. A contract for personal services
C. A contract under which Sharma and his friend Melanie were to concrete a driveway :
devolving on Melanie after Sharma’s death
D. A contract under which Tom was to receive goods devolving on Tom’s administrator :
after letters of administration were granted
81. Sharma was selling his secondhand vacuum cleaner to Natasha and told Natasha that it :
could “do all the rooms in the house ten times over without the filter needing to be :
changed”. Natasha spent a few weeks shopping for other vacuum cleaners but eventually :
returned and purchased Sharma’s, telling Sharma it was the cheapest she had seen in two
: weeks and she liked the colour. When Natasha took it home she soon discovered that the
: vacuum cleaner could only do one room at a time and then the filter would need
changing. : Natasha cannot rely on Sharma’s statement for breach of contract because:
A. The statement was not put into writing
B. Natasha did not attach any importance to the statement when it was made
C. Natasha should have tested the vacuum cleaner before buying it
D. The statement was a merger clause

82.Which of the following is not correct?

A. The Australian Consumer Law contains provisions on unconscionable conduct
B. The Australian Consumer Law contains provisions on misrepresentation
C. The Australian Consumer Law contains provisions on misrepresentation in relation to : the sale of land
D. The Australian Consumer does not have any provision for unconscionable conduct
83.The plaintiff in an action under s18 of the Australian Consumer Law is required to prove : what?
A. the conduct is misleading or deceptive
B. the conduct is misleading or deceptive or likely to mislead or deceive
 C. b, above, plus the intention of the defendant
D. The ACCC takes on the issues of proving the defendant’s intentions

84. In Shevill v Builders Licensing Board (1982) 149 CLR 620 at 625, Gibbs CJ listed all but the :
following various ways that a contract may be repudiated:
A. “[I]f one party discharges [themself] from performance by agreeing to a new agreement : that
supersedes the previous one”
B. “[I]f one party renounces his liabilities under it”
C. If one party “shows that [the party] intends to fulfil the contract only in a manner : substantially
inconsistent with [the party’s] obligations and not in any other way”
D. If one party “evinces an intention no longer to be bound by the contract”
85. A divisible contract:
A. Is one that provides expressly that performance is due after the other party has : performed stages of
the contract
B. Is one that provides impliedly that performance is due after the other party has : performed stages of
the contract
C. Is one that provides expressly or impliedly that performance is due after the other party : has
performed stages of the contract
D. Is one that provides that exact performance of the entire contract is required and duties : under it are
not severable
86. Which of the following is the general position of the courts when awarding damages?
A. Where it is possible to place an innocent part in the position he/she would have been in : if the breach
had not occurred
B. Where it is difficult to quantify the loss
C. Where the plaintiff is unable to establish that they have suffered any actual loss
D. Where the damages are unliquidated

87. Unliquidated damages are

A. Non-monetary sums
B. Prohibited by law as they are uncertain and difficult to quantify
C. Damages where the court is to determine the amount
D. Damages where an amount has been fixed in the contract
88.Which of the following sections of the Australian Consumer Law are relevant to :
misrepresentation?
A. Sections 23-25
B. Sections 18 and 29
C. Sections 20-22
D. Sections 52 and 53
89.Where a contract is made in writing, the express terms of that contract:
A. Are to be found in the writing
B. Are generally to be found in the writing
C. Are to be found in the writing unless it is an online agreement, in which case terms and : conditions
may be incorporated from the website of one or both parties
D. Cannot include anything said orally
90.Which of the following is not accurate? Duress involves:

A. Actual or threatened violence

 B. Duress must be the only reason for entering into a contract
C. A party coerced into entering into a contract (against their will)
D. Coercion of a person or their immediate family or near relatives

91.Janey takes her fur stole to the dry cleaner. When she returns to collect it, there is a : black mark in
the shape of an iron in the middle of her stole and it is ruined. The dry cleaner : tells Janey that he
is not liable for the damage to her fur stole as there was an exemption : clause in their agreement.
Which of the following is not correct?
A. If the exemption clause was merely contained within a notice on the wall, the dry : cleaner will be
liable for the damage
B. If the exemption clause was on the dry cleaning docket Janey was given and she was told : “don’t
worry about this, it’s just the docket you have to give us when you come to collect : your stole”, the
dry cleaner will not be able to rely on the exemption clause
C. In order for the exemption clause to be effective where it was not in a signed document, : it had to
have been brought to Janey’s attention
D. If the exemption clause was on the dry cleaning docket Janey was given rather than a : formal written
contract, the onus will be on the dry cleaner to prove that Janey was aware it : contained conditions
that would modify the agreement
92.Chris maintains that a document that he and Kathy have signed is a binding contract. : Kathy
maintains that it is merely a receipt and does not include all the terms of their : agreement. Which
of the following statements is correct?
A. If both parties have signed the document then the court will look no further into the : circumstances
B. Kathy should plead non est factum
C. Kathy will be able to establish the existence of an oral collateral contract even where it is :
inconsistent with the terms of the main binding contract
D. Parol evidence may be admissible
93.Which of the following statements about damages is not correct?
A. Damages may be recoverable for loss of profit
B. The onus of proving losses is on the plaintiff
C. Damages are a common law remedy
D. Damages are awarded to compensate a party for all losses caused by breach of contract

94. Which of the following is not one of the special relationships in which the onus of : proving that
undue influence was not employed shifts to the denying party?
A. Parent and child where the child is living independently
B. Solicitor and client
C. Trustee and beneficiary
D. Doctor and patient

95. A unilateral mistake does not include:

A. Mistake as to the nature of the document signed
B. Mistake as to the identity of the parties
C. Mistake as to the terms of the contract
D. Mistake as to capacity of the parties
96.Which of the following is not a type of termination?
A. Termination by bankruptcy
B. When the parties have fully and exactly performed their obligations to each other under : the contract
 C. When a deed displaces a simple contract
D. Where an event occurs that is not the fault of either party that causes a fundamental : change to
the nature of the contract and the parties obligations and although the contract : covers that
eventuality, it would cause hardship to one party to enforce it

97.Terms may not be implied into a contract by

A. The court
B. Representations
C. Trade usage
D. Custom
98.Which of the following is not a type of contract void at common law?
A. An agreement that offends the Australian Consumer Law (ACL).
B. A contract to oust the jurisdiction of the courts
C. A “marriage brokerage” agreement whereby money is paid in order to procure a : marriage
D. A price maintenance agreement that restrains trade.
99. In Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR : 337:
A. The High Court implied a term in the agreement granting a reasonable extension of time: b Codelfa
was able to prove that the term was necessary to make the contract work
B. Codelfa did not need to prove that the term was necessary to make the contract work : for the term
to be implied as it was sufficient that both parties needed to be rescued from a : difficult position
imposed upon them by the injunction
C. The High Court found that the contract was frustrated
100. In Hadley v Baxendale (1854) 9 Exch 341; 156 ER 145 the court recognized “reasonably :
foreseeable losses” as being:
A. All losses that a plaintiff can prove beyond reasonable doubt
B. Losses that arise naturally from a breach of contract
C. Losses that are actually contemplated by the parties
D. b & c
101. Which of the following is correct with respect to privity of contract?
A. It is unrelated to the doctrine of consideration
B. There are no exceptions to the doctrine of privity; the Trident v McNiece insurance : exception is not a
true exception
C. In circumstances where the doctrine applies, a third party beneficiary under a contract is : able to
acquire rights under it
D. Despite the doctrine, a new owner of land is able to enforce a covenant between the : previous
owner and another party
102. With respect to substantial performance and partial performance:
A. Partial performance is a lower level of performance than substantial performance, and : there is no
deduction of the contract price available where substantial performance has : occurred
B. Substantial performance is where the parties terminate the contract for less than full : performance
C. Partial performance is where a party voluntarily accepts less than full performance by : the other
party
D. Partial performance is where the court terminates the contract for less than exact : performance
103. Which of the following is not a situation where frustration would occur
A. Long term serious illness of a person contracted to perform a personal services contract
B. Where the government in exercising its powers has made completion of the contract : impossible
C. Where a change in the law renders performance of the contract illegal
D. Where the performance of the contract is rendered illegal by the destruction of the : subject matter
 of the contract by one of the parties
104. In determining whether a statement has become a term of the contract, the key test : applied by
the courts is:
A. Whether it is in writing
B. Contractual intention
C. The knowledge of the parties
D. The parties’ own beliefs

105. Which of the following are not usually compensated for with payment of damages?
A. Injured feelings/disappointment
B. Nominal loss
C. Loss that is difficult for the court to estimate
D. Loss of profit expected to be received
106. Which of the following is most correct? If an amount of $5,000 is specified in a written : contract
as the agreed genuine pre-estimate of damages in the event the contract is : breached then this is
commonly referred to as:
A. A penalty clause
B. Liquidated damages
C. Punitive damages
D. A mitigation clause
107. Which of the following is NOT a method of termination?
A. Agreement
B. Frustration
C. Breach
D. Rectification
108. Where a contract has not been completed within the specified time
A. If no time limit was specified in the contract, there is nothing the innocent party can do
B. The innocent party will be entitled to terminate the contract
C. The innocent party will be entitled to terminate the contract upon giving notice that time : is of the
essence
D. Only damages will be available no matter how crucial the time limit was to the innocent : party

109. Which of the following is not a requirement of a valid collateral contract?

A. The statement must be promissory
B. The parties must have intended the promise to be binding
C. The promise must be supported by consideration
D. The consideration must be of higher value than the main contract
110. Which of the following constitutes pyramid selling?
A. Jaz is approached by her neighbor to join the sales team of Thames Beauty Products.
: Thames sells its products door-to-door through agents and is a close-knit family
type of : company. Agents that introduce other agents to “the family” are rewarded
with a finders’: fee. It is only $500 to join the Thames family, and Jaz only has to
spend $400 of products in: her first month
B. Jaz starts work at a chemist and notices that the chemist, as retailers often do, puts a :
sale price on a sticker on most of the products in the shop. However, the chemist does
 not: put the sale price sticker on top of the original price sticker and when customers
bring the : products to the counter, the chemist tells them that unfortunately there has
been a mistake, : the true price is the higher price
C. Jaz approaches a salesperson on the forecourt to buy the car package she saw :
advertised on television and is told that there were only two cars for sale as a part of
that : deal and there are now none left. The salesperson tells Jaz that she would look
much better : in the convertible model and although there is no deal on that car, it is
only $50,000 more
D. Jaz purchases a painting through a new art gallery that has just opened in town. The :
price is high and Jaz is at first uncertain about the expense, but the art dealer promises
Jaz a : commission on sales to any of Jaz’s friends who she sends along to the gallery. Jaz
has a lot : of art collector friends so is sure that she will receive some commission from
the gallery in : the near future.
111. James, a chef, tells Laura, who is looking to buy his antique lounge chair, that the chair is : of
Spanish origin. Three weeks later a written contract is drafted that makes no mention of : the
chair’s origin. The statement that the chair is of Spanish origin is most likely to be a/an:: a Mere
puff
A. Representation
B. Opinion
C. Term
112. If the court held the sum the parties inserted into their contract ($100,000) to be a : penalty, and
the actual loss determined by a court was $30,000:
A. The plaintiff would be able to recover nothing as it was a penalty
B. The plaintiff would be able to recover $30,000 only
C. The plaintiff would be able to recover $100,000 as this was in the contract
D. The plaintiff would be able to recover$70,000 (the difference between the amount in : the contract
and the actual loss)
113. Which of the following is correct?
A. It is prohibited to offer free gifts with purchase
B. It is prohibited to offer goods at a special price, not have a sufficient amount of those : goods
available and then attempt to upsell to customers who are drawn to the shop for the : special price
deal
C. It is not prohibited for a supplier to take a customer’s money when the supplier believes : they won’t
be able to supply the service to the customer within a reasonable time
D. It is not prohibited for a supplier to take a customer’s money when the supplier believes : they won’t
be able to supply the service to the customer within a reasonable time
114. The definition of “consumer” is limited by what amount?
A. $40,000
B. Recently increased to $100,000
C. There is no limit
D. A negotiated amount
115. Coulls v Bagot’s Executor & Trustee Co Ltd (1967) 119 CLR 460; Beswick v Beswick [1968] : AC 58
and Tweddle v Atkinson (1861) 1 B & S 393 all relate to the doctrine of:
A. Frustration
B. Consideration
C. Privity
 D. Innominate terms
116. A party in breach of contract is liable to pay damages for:
A. Losses occurring in the usual course of things from the breach
B. All losses whether contemplated or not
C. Remote losses only
D. Losses that should have been mitigated
117. Matt sells his car to Tabitha, who purchases it on the condition that she can continue to: keep it
in his garage at no cost for the next six months. Tabitha pays in full. Two months: later, Matt tells
Tabitha she will have to remove her car from his garage as he has bought a: new car and wants to
keep it in the garage. Which of the following statements is correct?
A. If Tabitha agrees to remove her car, the contract has been terminated by partial: performance
B. The condition that Tabitha is allowed to keep her car in Matt’s garage is a condition: precedent
C. The condition that Tabitha is allowed to keep her car in Matt’s garage is a condition: subsequent
D. If Tabitha promises to remove her car, Matt will not be able to enforce the promise: unless the
promise is supported by consideration or made under seal
118. A term that is vital to a contract is known as
A. A key term
B. A condition
C. A warranty
D. An innominate term
119. Which of the following statements is not correct?
A. A condition is a major term of the contract; a breach renders the contract substantially : different
from the agreed term
B. A breach of a warranty entitles the innocent party to be compensated with damages and :
termination of the contract
C. A breach of a condition entitles the innocent party to be compensated with damages
D. A warranty is a minor term of the contract; a breach renders the contract insubstantially : different
from the agreed term
120. When are nominal damages awarded?
A. The plaintiff has not mitigated his loss
B. The damages are so great the court has to estimate them
C. A legal right has been infringed but there is no actual loss
D. The plaintiff has calculated his losses incorrectly
121. Which of the following is a way that a contract may be terminated by operation of law?
A. Where a deed on a slightly different subject matter displaces a simple contract
B. Where a party to a delivery of goods contract becomes bankrupt
C. Where a deed where one of the parties is different displaces a simple contract
D. Where a simple contract merges into a deed and the security is of the same value in both
122. Which of the following is not a remedy for unconscionable conduct?
A. An injunction
B. Ordinary damages
C. A criminal prosecution
D. A pecuniary penalty
123. In which case was it that held that where an exemption clause is in a non-contractual : document,
the clause must be brought to the other party’s attention for it to be effective?
124. Which of the following statements is not correct? With respect to legality of object:
A. Illegality is not confined to criminal illegality
B. A contract may be illegal where it is made to effect a purpose that a statute renders : unlawful
C. A contract may be illegal where its object is impliedly prohibited by statute
D. Illegal objectives will not affect a contract provided both parties have agreed to it
125. Which of the following is not correct? With respect to s 18 of the Australian Consumer : Law,
silence:
A. May constitute misleading or deceptive conduct where a statement is literally true but is : misleading
without further qualification
B. May constitute misleading or deceptive conduct where there is a “reasonable : expectation” that
disclosure will be made
C. Is not relevant in considering the contravention
D. May constitute misleading or deceptive conduct where there is failure to disclose a : change in
circumstances
126. In which case did the court recognise that damages for disappointment and distress : could be
available subject to certain limitations?
A. Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653
B. Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd (2003) 196 ALR 257
C. Howe v Teefy (1927) 27 SR (NSW) 301
D. Baltic Shipping Co v Dillon (1993) 176 CLR 344
127.In which case did the court find that passing off had been engaged in and the misleading : and
deceptive conduct provisions had been contravened?
A. Apand Pty Ltd v The Kettle Chip Co Pty Ltd (1994) 52 FCR 474
B. McWilliam’s Wines Pty Ltd v McDonald’s System of Australia Pty Ltd (1980) 33 ALR 394
C. Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191
D. eBay International AG v Creative Festival Entertainment Pty Ltd (2006) 170 FCR 450
128. A liquidated damages clause in a written contract:
A. States that the parties have agreed to leave the calculation of damages to the court
B. Sets out the price of the contract
C. Sets out the agreed amount payable to the innocent party for terminating the contract
D. Sets out the amount agreed payable to the innocent party if there is a breach of contract
129. In which of the following cases would a plea of frustration not succeed?
A. Where the event should have been foreseen
B. Where no specific provision was made for the event in the contract
C. Where performance is still possible but would be pointless
D. Where performance has become fundamentally different from what was contemplated : by the
parties
130. In Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26, the court :
recognised which of the following terms which later became part of Australian law in : Koompahtoo
Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115?
A. Transitional term
B. Warranty
C. Innominate term
D. Intervening term
131. Which of the following is not correct? A condition:
A. If breached, entitles an innocent party to damages or specific performance under the : common law
B. Is an essential term of the contract
C. Goes to the root of the subject matter of the contract
D. If breached, entitles an innocent party to rescind the contract
132. A party repudiates contract when
A. The party is able but unwilling to perform their obligations under it
B. The party decides to terminate the contract
C. The party breaches a representation
D. The party breaches a warranty
133. In Victoria Laundry (Windsor) Ltd v Newman Industries Ltd [1949] 2 KB 528:
A. All loss related to the delay in installation of the boiler was recoverable because the : defendant
should have known that delay would cause loss to a commercial operation
B. All loss related to the delay in installation of the boiler was recoverable because the : plaintiff had
made known to the defendant that the plaintiff was “most anxious” that the : boiler was installed on
time
C. Only the ordinary loss related to the delay in installation of the boiler was recoverable : because the
defendant was not made aware that additional lucrative contracts had been : negotiated
D. No damages were recoverable as the defendant could not be expected to foresee that : late delivery
would cause any loss
134. Which of the following statements is incorrect?
A. Innominate terms are neither conditions nor warranties
B. Intermediate terms are the same as innominate terms
C. The remedies available for breach of an intermediate term depend on their classification : as an
intermediate term, not the effect of the particular breach
D. Intermediate terms are terms that are capable of being breached in minor and major : ways
135. Which of the following is incorrect? Repudiation:
A. Is where a party demonstrates an unwillingness to perform their obligations
B. Is the same as termination; the contract is at an end
C. Gives an innocent party the right to terminate the contract
D. Is where a party demonstrates an inability to perform their obligations
136. Which of the following is not an unfair practice under the Australian Consumer Law?
A. Where a free gift is offered with the purchase an electric toothbrush and the cost of the : “gift”
toothpaste is added to the price of the toothbrush
B. Where a television advertisement for a chocolate bar shows teddy bears working the :
manufacturing lines
C. Where a brochure advertising a beauty therapy treatment consisting of time in an : oxygen tank lists
the treatment as lasting two hours, when in fact the treatment lasts just : under one hour
D. Where a shop assistant takes money from a customer knowing that the shirt the : customer wants is
sold out, but hoping that after a few days when the customer is told that : there are no more shirts
they will purchase something else from the shop

137. Marnie loans Bill $1000 so that Bill can pay a local politician to ensure his tender will be : the
winning tender. The contract between Marnie and Bill is:
A. A simple loan contract that is enforceable
B. A contract voidable at Marnie’s option
C. An illegal contract
 D. A contract voidable at Bill’s option
138. In ACCC v Turi Foods Pty Ltd [2012] FCA 19:
A. The statement that the chickens were “free to roam” was misleading as there were too : many
chickens per square metre for the chickens to easily move
B. The advertising was found to be misleading as the chickens were not lounging on deck : chairs
C. The court had no power to issue a fine
D. The court ordered Turi to make a disclosure order
139. Which of the following is not an element requiring satisfaction before the court will : imply a term
into a contract?
A. It must be reasonable
B. It must be capable of clear expression
C. It must be equitable
D. It must complement an express term of the contract
140. Century Dragon Pty Ltd is contracted to export 1000 beach balls to Minerva Beach Surf : Club by 1
January, with payment due by 1 April. Which of the following is correct?
A. The time of delivery is likely to be considered an essential term.
B. The time of payment is likely to be considered an essential term
C. The time of delivery and the time of payment are likely to be considered essential terms
D. Neither the time of delivery nor the time of payment are likely to be considered essential : terms
unless time is expressly stated to be of the essence
141. Which of the following is NOT correct?
A. The ACCC can seek both criminal and pecuniary penalties for breaches of the unfair : practices
provisions of the Australian Consumer Law?
B. The new maximum penalties may vary depending on turnover of a corporation
C. Injunctions can be sought as orders
D. A criminal penalty can be sought for a breach of s 18?

142. Where one party believes the contract refers to the Bonny Lass, a freight ship based out : of
Norway, and the other party believes the contract refers to the Bonny Lass, a freight ship : based out
of Hong Kong, this is an example of a:
A. Mistake of law
B. Unilateral mistake
C. Common mistake
D. Mutual mistake
143. Which of the following is not true with respect to misleading or deceptive conduct?
A. The plaintiff has to prove that conduct was misleading or deceptive
B. The plaintiff has to prove the causal link between the conduct and the loss
C. A person acting as a ”mere conduit” in passing on representations may also be liable
D. A corporation is not liable where it is clear that the corporation is not the source of the : information
144. Which of the following matters is least likely to contribute to a finding of unconscionable : conduct
in connection with goods or services?
A. Where conditions imposed on a customer were not necessary for the protection of the : supplier’s
interests
B. Where the supplier makes a commercial decision to breach the contract knowing that : the
customer will seek a legal remedy for the breach
C. Where the supplier acted in bad faith
 D. Where unfair tactics were used against the customer
145. Janine has sold her business to Simone. Simone insists on inserting a clause in the : agreement that
Janine cannot open a similar business within 10 kilometres of her former : business, for the next two
years. Which of the following is not true?
A. This clause is a restraint of trade
B. The court will always uphold restraint of trade provisions in contracts for sale of : business
C. Where a restraint of trade is unreasonable, the whole or parts of the contract will be void
D. It is impossible to say whether a court would deem this restraint of trade clause : reasonable without
further details
146. Which of the following is not a restraint of trade?
A. A price maintenance agreement
B. A contract restraining Laura from working as a welder within Ballarat for two years after : her
termination with Welders R Us
C. An agreement between John and Liz that John will not open a brew shop within 2km of : the brew
shop he just sold to Liz
D. An agreement by which Steve agrees to repay his daughter’s loan debt in return for the : person
who advanced the loan to his daughter agreeing not to report Steve’s daughter to : the police for
fraud
147. Parol evidence may not be admitted in which of the following circumstances?
A. To evidence an oral collateral contract
B. To evidence the identity of the parties to the contract
C. To contradict an unambiguous term
D. To explain a local custom
148. Which of the following is not correct? An injunction:
A. Is an order of the court
B. Restrains a person from doing something
C. Is sometimes granted to compel a party to do something they would not have been : ordered to do by
specific performance
D. Is an equitable remedy
149. When it was said in Re Hall & Barker [1878] 9 Ch D 538, “if a shoemaker agrees to make : a pair of
shoes, he cannot offer you one shoe and ask you to pay one half the price”, this is : referring to:
A. The court’s tendency to regard contracts as divisible
B. The court’s tendency to regard contracts as severable
C. The court’s tendency to regard contracts as entire
D. The court’s tendency to require substantial performance
150. Which of the following guarantees applies to a sale by auction?
A. Guarantee as to undisturbed possession
B. Guarantee as to express warranties
C. Guarantee as to acceptable quality
D. Guarantee as to title
151. When a contract is made orally, the question of what the express terms are:
A. Is in most cases unascertainable
B. Depends on what a reasonable person would have said
C. Is a question of fact
D. Is not applicable; oral contracts only contain implied terms
152. Which of the following constitutes bait advertising?
A. Jaz is approached by her neighbor to join the sales team of Thames Beauty Products. :
Thames sells its products door-to-door through agents and is a close-knit family type
of : company. Agents that introduce other agents to “the family” are rewarded with a
finders’: fee. It is only $500 to join the Thames family, and Jaz only has to spend $400
of products in: her first month
B. Jaz starts work at a chemist and notices that the chemist, as retailers often do, puts a :
sale price on a sticker on most of the products in the shop. However, the chemist does
not: put the sale price sticker on top of the original price sticker and when customers
bring the : products to the counter, the chemist tells them that unfortunately there has
been a mistake, : the true price is the higher price
C. Jaz approaches a salesperson on the forecourt to buy the car package she saw :
advertised on television and is told that there were only two cars for sale as a part of
that : deal and there are now none left. The salesperson tells Jaz that she would look
much better : in the convertible model and although there is no deal on that car, it is
only $50,000 more
D. Jaz purchases a painting through a new art gallery that has just opened in town. The :
price is high and Jaz is at first uncertain about the expense, but the art dealer promises
Jaz a : commission on sales to any of Jaz’s friends who she sends along to the gallery. Jaz
has a lot : of art collector friends so is sure that she will receive some commission from
the gallery in : the near future.
153. Contingent conditions include:
A. Accord and satisfaction and consideration
B. Conditions subsequent and conditions precedent
C. Warranties and innominate terms
D. Releases and mutual terminations
Quiz 3
1. To claim damages a causal link must be established between what two things?
A. Between the defendant’s conduct and the actual monetary value of the
loss/damage
B. The conduct and initiating court proceedings
C. The fact that the plaintiff suffered loss or damage is sufficient. Nothing else is
required
D. The defendants breach and the plaintiff’s injury
2. The “neighbour principle” is often viewed as:
A. An objective test
B. A test of the reasonable person
C. A test of the foreseeability of harm
D. An identity test
3. In Tame v State of New South Wales (2002) 211 CLR 317 where Tame was given a false :
 blood alcohol reading:
A. Whether the police officer was found to have owed Tame a duty of care was
entirely a : question of community standards
B. The psychotic depressive illness Tame developed was found to flow from the
breach of : duty of the police sergeant because it was entirely caused by his actions
that could have : been avoided had he exercised sufficient care
C. Part of the test of reasonable foreseeability is a question of fact
D. Because of the “eggshell skull” principle, pre-existing knowledge of Tame’s
susceptibility : to suffering nervous shock was not required to prove a breach
4. Which of the following is not correct?
A. If damages are too remote they will not be recoverable
B. The remoteness test will be satisfied where the damage suffered is of the same type
or : kind as foreseeable damage
C. In order for damage to not be too remote, it must be reasonably foreseeable
D. In The Wagon Mound No 1 and The Wagon Mound No 2, where there was an :
unfortunate combination of an oil spill, welding sparks and floating cotton waste, the
loss : was found to be not reasonably foreseeable in the circumstances
5. Which of the following is not a provision of the Wrongs Act 1958 (Vic) relating to:
professional liability?
A. If there are differing peer professional opinions across Australia, the court may
accept : just one of those opinions
B. The court must rely on peer professional opinion even where it considers that
opinion : irrational
C. If there are differing peer professional opinions across Australia, the court may
accept all : of those opinions
D. Peer professional opinion can be considered widely accepted even where it is not :
universally accepted
6. Why was the plaintiff successful in Overseas Tankship (UK) Ltd v Miller
Steamship Co Pty : Ltd (The Wagon Mound No 2) [1967] AC 617 (PC) when another
plaintiff failed in the earlier : related Wagon Mound case?

A. The plaintiffs in the second had better legal representation

B. The legal situation had changed between the two cases
C. The court was more disposed to think about the consequences of the damage suffered
by : so many as a result of the oil spill
D. In the first case, the plaintiffs failed to show that a reasonable man would have
foreseen : the risk of damage from the oil spill
7. Nicola drives the forklift at her place of work, Rooze’s Roofing. Nicola always leaves
the : forklift in a certain place where she has been told to leave it, with the forks up
off the : ground. One afternoon a customer who is collecting goods from the
workshop reverses his : car into the forks on the forklift. He is injured and his car is
damaged.: What is the principle that would make Nicola’s employer liable for her
 actions?
A. Contributory negligence
B. Strict liability
C. Vicarious liability
D. Voluntary assumption of risk
8. Where a person gives advice, that advice is relied upon and the advice is incorrect,
the : person giving the advice may be liable in negligence. Which of the following is
incorrect?
A. The “special relationship” described in Mutual Life & Citizens’ Assurance Co Ltd v Evatt
: (1968) 122 CLR 556 has been accepted as the test for determining the existence of a
duty of : care with respect to negligent misstatements
B. The test in Mutual Life & Citizens’ Assurance Co Ltd v Evatt (1968) 122 CLR 556 was :
approved in San Sebastian Pty Ltd v Minister Administering Environmental Planning &:
Assessment Act 1979 (1986) 162 CLR 340
C. The duty of care only arises where the “special relationship” involves a person
seeking : advice from the advice-giver, not where the advice was given unrequested
and merely : accepted
D. The advice-giver does not need to be in the business of giving advice
9. Which of the following is not correct? The reform to the law of negligence that
took : place in Australia in the early 2000s:
A. Limits the scope of potential liability for negligence
B. Does not apply to claims in contract law
C. Was enacted in all Australian states and territories
D. Covers personal injury
10. In Australian Safeway Stores v Zaluzna (1987) 162 CLR 479:
A. The respondent was a lawful entrant upon the land of the respondent, establishing a :
relationship between them and there was therefore a duty of care owed by the
appellant to : avoid a foreseeable risk of injury
B. The respondent was limited by his particular status as entrant without specific
consent of : the appellant
C. The respondent contributed to the accident thus limiting damages
D. There was no liability.

QUIZ 4
1. The incorrect statement?
A. Partners are not bound when another partner misappropriates monies
B. If the giving of investment advice is within the scope of the firm’s business then all
partners : are jointly and severally liable for advice which is not in a client’s best
interests
C. the client should seek a personal indemnity from a partner
D. special skill is required to bind all partners
2. Which of the below statements is incorrect?
A. a written and signed notice of a partner’s intention to dissolve the partnership is
required, : where no fixed term has been agreed upon for the duration of the
partnership
B. a continuing guarantee given by or to a partnership is revoked as to future
transactions if there is : a change in the constitution of the partnership
C. where a partnership continues after a fixed term has expired, the rights and
duties of the partners : remain the same, but the partnership becomes a
partnership at will
D. partnership property must be used exclusively for the purposes of the
partnership and in the : manner set out in the partnership agreement
3. Which legislation controls the actual registration of the firm name?
A. Corporations Act 2001 (Cth)
B. Partnership Act
C. Statute of Frauds 1677
D. Business Names Registration Act 2011 (Cth)
4. Which of the following statements regarding partnerships is incorrect?
A. The second element of a partnership is carrying out a business in common
B. To be a partnership there must be a mutuality of rights and obligations
C. Each partner must take an active part in the direction and management of the firm
D. In Degiorgio v Dunn [2004] NSWSC 767 it was held that there was no
partnership because the : business was not run “in common”
5. Which of the following statements regarding dissolution of partnership is
incorrect?
A. In the event of dissolution, losses must be met first out of profits, followed by
capital, then by : partners in proportion to their share of profits
B. A firm’s assets as contributed by partners to make up capital losses need not be
applied to pay : the firm’s debts/liabilities to non-partners
C. After dissolution, each partner is entitled to advances and residue by the firm
D. After the dissolution, each partner’s authority to bind the firm continues, so far as
necessary for : winding up partnership affairs and completing unfinished transactions
6. Which is incorrect statement?
A. If a member of a firm of solicitors acting for a vendor in a sale absconds with the
deposit, : his/her partners are not liable to refund the money
B. In Lloyd v Grace, Smith & Co [1912] AC 716, the firm was held responsible for the
fraud committed : by a managing clerk of a firm, who misappropriated property while
acting within the scope of his : authority
C. In SJ Mackie Pty Ltd v Dalziell Medical Practice Pty Ltd [1989] 2 Qd it was held that the
transfer of a : share to a non-partner breaks the continuity of the firm, constituting a
new firm/partnership of the : remaining former partners and the new member
D. Partnership agreements can contain provisions to enable the transition from one firm
to another : to be effected without the disruption of a formal winding up.
7. Which of the following statements is not correct?
A. as an agent, a partner is able to bind the other partners and, as principal, be bound
by the actions : of the other partners
B. in New South Wales, Victoria, Queensland, South Australia, Western Australia and:
Tasmania provision for limited partnerships is made in the Partnership Act
C. incorporated limited partnerships have been introduced in all Australian States and
Territories
D. the Partnership Act provides that the rules of the common law and equity are to
continue in force : except insofar as they are inconsistent with the Act
8. Find one incorrect statement?
A. In the absence of special statutory provision, although each partner is liable with the
others for : the whole of the debts of the firm, their liability is only joint
B. A creditor can bring only one action against members of a partnership and any partner
can insist : that the action be stayed until all other partners are joined as parties.
C. A person admitted into an existing firm, liability may be incurred where it is
specially agreed upon
D. A creditor can enforce liability against an incoming partner whether or not
he/she is a party to : the contract
9. What constitutes an exception to the usual number of a partnership being 20 partners?
A. If one of the partners is married-his/her husband or wife is automatically a
partner
B. The exception relates only to limited partnerships
C. No more than 20 are allowed
D. The Corporations Regulations 2001 (Cth) provide greater numbers in certain
specified : professions
10. Which statement regarding an outsize partnership is incorrect?
A. it has more than 20 partners
B. its partnership agreement is invalid
C. it is liable to a criminal penalty ($500)
D. its agreement does not affect the enforceability of contracts or other
arrangements made
11. Which finding is correct?: In Popat v Schonchhatra (1997) 3 All ER 800, the Court
decided:
A. Popat was entitled to half the profits on the sale of the business and to a share of the
profits : that had accrued after the dissolution of the partnership, but before the final
settlement of : accounts.
B. Popat was not entitled to any profits on the sale of the business, as there was no
partnership : agreement and he was further not entitled to a share of the profits
accrued after the dissolution of : the partnership, but before the final settlement of
accounts.
C. Popat was entitled to half the profits on the sale of the business, but not to a share of
the profits : that had accrued after the dissolution of the partnership, but before the
final settlement of : accounts.
D. Popat was not entitled to half the profits on the sale of the business, but he was
entitled to a : share of the profits that had accrued after the dissolution of the
partnership but before the final : settlement of accounts.
12. Which of the following statements is incorrect?
A. a separate legal entity can commit civil wrongs and engage in criminal conduct
B. a public company has serious compliance obligations
C. a partnership must be in writing
D. a separate legal entity is entitled to own property, pay tax and enter into
contracts
13. Which of the below does not apply to the Partnership Act?
A. The rules in the Partnership Acts assist in determining whether a business is being
carried on in : common
B. The partnership under the Act must be registered with ASIC
C. Each rule states a negative: i.e. that a certain fact does not of itself create a
partnership, but is : only indicative of a partnership
D. Joint or part ownership or joint tenancy, or tenancy in common whether or not the :
owners/tenants share the profits, does not of itself create a partnership as to anything
so : held/owned
14. Which of the following statements regarding the written law is incorrect?
A. Under s 115 of the Corporations Act 2001 (Cth), the maximum number of
persons who may form a : partnership for the acquisition of gain is 20
B. Under the Corporations Regulations 2001 (Cth), reg 2A.1.01, partnerships of more
than 20 : partners may be formed for certain professions/callings
C. The Corporations Regulations 2001 (Cth), reg 2A.1.01 sets a maxima of partners for
medical and : legal practitioners, veterinary surgeons, patent and trademark
attorneys, sharebrokers and : stockbrokers and pharmaceutical chemists
D. The Corporations Regulations 2001 (Cth), reg 2A.1.01 does not set a maxima of
partners for : architects and accountants
15. Which court finding is incorrect?
A. In Mercantile Credit Co Ltd v Garrod [1962] 3 All ER 1103, damages were not
recovered even : though, from the plaintiff’s perspective, the sale of the car was
within the usual course of : business.
B. In Goldberg v Jenkins (1889) 15 VLR 36, the firm was not bound to the transaction
because : borrowing money on behalf of the firm at over 60% interest when comparable
rates were between : 6% and 10% was beyond ‘the usual
way’.
C. In Construction Engineering Pty Ltd v Hexyl Pty Ltd (1985) 155 CLR 541, Hexyl was not
liable : because the construction contract appeared to be between
Construction Engineering and Tembel
D. If judgment is obtained against one or more partners of a firm, no action may be taken
against the : other partners, even if satisfaction cannot be obtained from the partner(s)
sued
16. Cribb v Korn (1911) 12 CLR 205 established:
A. Joint ownership creates a partnership
B. A joint tenancy is just another name for a partnership
C. The sharing of joint returns does not in itself create a partnership
D. The statutory rules can be excluded by agreement
17. The incorrect statement is?
 A. A partner has express actual and implied actual authority to engage in certain
activities with third: parties
B. A partner cannot pledge/sell partnership property, incur and pay debts on partnership :
accounts or hire employees
C. Contravention of an agreement to restrict a partner’s authority is not binding on the
firm if notice : of the agreement has been given
D. In Polkinghorne v Holland (1934) 51 CLR 143, the firm was held liable because Holland
provided : the advice in his role as solicitor; thus in the ordinary course of the firm’s
business
18. Regarding partnerships, which of the following statements is incorrect?
A. Partnerships are created with a view to profit, so partners must make a profit: b A partner does not
have to have a direct claim to a share of the profits
B. Associations and charities are not partnerships, as profits come from ancillary
business activities : and are reinvested, not distributed as dividends to their
members
C. The Partnership Acts do not govern members of a corporation incorporated under the
provisions : of the Corporations Act 2001 (Cth), a special Act of Parliament, or Royal
Charter
19. Which of the below statement is incorrect?
A. Partnership property is liable to be seized for the private (personal) debt of a partner
and : made liable on a judgment against the partnership
B. A creditor who has obtained judgment in respect of the separate debt of a partner may
obtain an : order charging that partner’s interest in the partnership property and profits
with the amount of the : debt and interest.
C. A creditor who has obtained judgment in respect of the separate debt of a partner may
obtain by : an order the appointment of a receiver of that partner’s share of profits and
of any other money : which may be coming to the partner in respect of the partnership.
D. The two sources of law relevant when considering how partners bind their partners
when dealing : with third parties are the common law (including equity) of agency and
the Partnership Act. The : common law complements the provisions of the
Partnership Act in relation to the authority that an : agent has.
20. Which statement is incorrect?
A. carrying on a business implies repetition (Smith v Anderson (1880) 15 Ch D 247)
B. partnership may be formed in order to undertake a single business transaction
C. in Khan v Miah [2000] 1 WLR 2123 it was held that work, such as finding, acquiring and
fitting out : a shop/restaurant, is undertaken with a view to profit
D. in Keith Spicer Ltd v Mansell [1970] 1 All ER 462 it was held that ordering goods and
opening a : joint bank account in contemplation of a business are insufficient for a
partnership
21. Find incorrect statement
A. A term often included in a partnership agreement that allows other partners to
purchase a : retiring/deceased partner’s interest at an agreed valuation avoids the
disruption of a formal winding
B. A partnership cannot be dissolved because the business is carried on at a loss
C. Partnerships can be dissolved because of mutual incompatibility, making it
impossible for partners : to carry on a business
D. On dissolution, partnership property can be applied towards the payment of
partnership : liabilities/debts and any surplus can be distributed among the
partners

22. Which below is incorrect? A firm is not bound by the acts of a partner if:
A. the act is not of the usual business of the kind carried on by the firm
B. the partner exceeds his/her actual authority in the particular matter
C. the person with whom the partner is dealing knows that he/she has exceeded
his/her authority
D. the person with whom the partner is dealing knows or believes him/her to be a partner

23. Legislation in Victoria: What Act regulates partnerships in Victoria?

A. Partnership Act 1892
B. Partnership Act 1958 (Vic)
C. Corporations Act 2001 (Cth), s 20
D. Competition & Consumer Act 2010 (Cth)

24. Which statement regarding persons of unsound mind and minors is incorrect?
A. a partner of unsound mind is capable of binding the firm and of being bound by
co-partners, : unless proven that he/she was of unsound mind when the partnership was
entered into and the : other partners knew this
B. if a partner who is a minor enters into a contract with a third party on behalf of the firm, the :
minor is liable as far as private assets are concerned
C. a creditor who has obtained judgment against the firm may not seize the minor’s
separate : property
D. a minor will become liable as an ordinary partner when he/she attains majority the
partnership is : not repudiated within a reasonable time

25. Which below statements is incorrect?

A. Partners share the profits in a partnership

B. In a partnership, partners have limited liability for the business debts
C. A partner is also an agent of the partnership
D. Agreement may be implied in a partnership
 26. Which statement regarding dissolution of a partnership is incorrect?
A. Partners are not entitled to have partnership property applied towards the
payment of : partnership liabilities
B. After payment of the firm’s liabilities, partners do not have the right to have surplus assets :
applied in payment of what may be due to the partners respectively
C. On the termination of the partnership, any partner can apply to the court for a decree
to dissolve : the partnership and appoint a receiver to wind up the firm’s business/affairs
D. Should a sequestration order be made against a partner, a creditor of the firm cannot
receive a : dividend out of the bankrupt’s separate property until all separate
creditors of the bankrupt partner : have been paid in full.

27. Which court decision regarding fiduciary duties is incorrect?

A. In Chan v Zacharia (1984) 154 CLR 178, the court decided that that the fiduciary relationship :
continued until the partnership had finally been wound up.
B. In United Dominion Corp Ltd v Brian Pty Ltd (1985) 157 CLR 1, the Court found that a fiduciary :
relationship, with attendant fiduciary obligations ordinarily exist between prospective
partners who : have embarked upon the conduct of the partnership business or venture
before the precise terms of : any partnership agreement have been settled
C. In Popat v Schonchhatra (1997) 3 ALLER 800 in the absence of a statement to the contrary, :
partners are entitled to an equal share of profits
D. in Harvey v Harvey (1970) 120 CLR 529, the Court held that if a partner receives an additional :
annual fee to be “on call” for that client, the fee belongs to the partnership.

28. Which of the following statements regarding limited partners is incorrect?

A. A limited partner may assign his/her share in the partnership with the consent of the
general : partners
B. The consent of a limited partner is not required to admit a person as a partner
C. If a limited partner has suffered his/her share of the partnership property to be charged for a :
separate debt, the other partners are entitled to dissolve the partnership
D. A limited partner is not entitled to dissolve the partnership by notice.

29. Which legislation regulates partnerships in NSW?

A. Partnership Act 1892 (NSW)*
B. Competition & Consumer Act 2001 (Cth)
C. Partnership Act 1958 (Vic)
D. Partnership Act 1895
30. Find a statement that is incorrect
A. A retiring partner should give specific notice of their retirement to persons with whom
the firm : has had dealings to avoid being made liable for debts incurred after retirement.
B. Persons who represents themselves, or knowingly allow themselves to be represented,
as a : partner, are liable as a partner to anyone who has on the faith of such representation
given credit to : the firm
C. A wrongful act/omission includes breach of contract or of fiduciary duty, negligent :
misrepresentation and misleading or deceptive conduct
D. Innocent partners are liable for wrongful acts of other partners made in the
ordinary conduct of : business

31. Which statement regarding partnership is incorrect?

A. A partnerships (or firm) is a way of gathering resources or expertise for major
projects
B. Partnerships do not avoid taking on the formality and expense of an incorporated
company
C. Partners in a partnership complement each other with their skills and bring in new capital
and : broader funding options

32. How would a partner pledge the firm’s credit?

A. By deed
B. Only for a purpose directly connected to the firm’s business but must have express
authority : to do so
C. By agreement with other partners
D. By agreement with a majority of partners plus an appropriate credit application

33. Which statements is not correct?

A. if the agreement is that a person should be paid a fixed sum by the firm, he/she may be a
partner : and jointly liable to creditors of the firm
B. the rights and obligations of partners to each other arise from the partnership
agreement, the : statute and the equitable concept of the fiduciary
C. a partnership agreement must be in writing; it cannot be reached orally or by a
course of : conduct
 D. the Partnership Act determines partners’ rights, duties and interests, if not
included in the : partnership agreement

34. Which of the statements below is incorrect?

A. A partner’s express authority must be in writing
B. A partner’s authority to buy/sell goods of a kind necessary for or usually employed in
the business : on account of the firm is implied
C. A partner cannot pledge the firm’s credit for purposes not connected with its
ordinary course of : business without express authority
D. A partner cannot pledge the firm’s assets for private debts without express
authority

35. Which of the following is NOT a ground for termination of a partnership?

A. Court order
B. Partner leaves the jurisdiction
C. Expiry of a fixed term
D. Bankruptcy of a partner

36. In Hadley v Baxendale (1854) 9 Exch 341; 156 ER 145 the court recognized “reasonably :
foreseeable losses” as being:
A. All losses that a plaintiff can prove beyond reasonable doubt
B. Losses that arise naturally from a breach of contract
C. Losses that are actually contemplated by the parties
D. b & c
37. Which statements is incorrect?
A. Like most partners, sole traders have unlimited personal liability of the business/firm
B. More complex business organisations are unsuitable for larger businesses
C. Upon incorporation, a corporation becomes a separate legal entity
D. Diverse ownership requires proper management and expertise in numerous areas

38. Which is incorrect statements regarding limited partnerships?

A. A limited partner must not take part in the management of the business and does not
have power : to bind the firm
B. If a limited partner partakes in the management of the business, he/she is liable as a
general : partner

C. A limited partner does not have the right to inspect the books of the firm

D. Any differences arising as to ordinary matters connected with the firm’s business are to
be : decided by a majority of the general partners