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Free L5M3 Exam Braindumps (page: 8)

Page 8 of 31
PDF with 120 Questions

Which of the following is a source of breach in a contract?

  1. negligence
  2. liability
  3. force majeure
  4. warranty

Answer(s): A

Explanation:

Negligence can be a source of a breach. P.42



Fishfingers Ltd has a contract with a supplier of cod.
When the contract was set up it was not known how important specific delivery times would be for the arrival of the fish. After several months it has now become apparent that delivering the fish within 3 hours of them being caught is fundamental to the contract as delayed delivery results in poorer quality Fish Fingers.
When the contract was set up what was the delivery times?

  1. a condition of the contract
  2. a warranty
  3. an innominate term
  4. a time is of the essence clause

Answer(s): C

Explanation:

An Innominate Term is the correct answer. At the time the contract was written, we didn't know how important the delivery time was - therefore it wasn't a condition or a warranty- it was an innominate term. An innominate term is a term that is difficult to classify at the time of drafting a contract. A time is of the essence clause would be a good thing to include in this contract now that we know how important the delivery times are. For more information on Conditions, Warranties and Innominate Terms see p. 43



Penguin Ltd has a contract with Blue Company. Blue Company has just broken a warranty in the contract.
What remedies does Penguin Ltd have available?

  1. they can sue and claim damages
  2. they can claim damages and terminate the contract
  3. they can terminate the contract but cannot claim damages
  4. they can claim damages but not terminate the contract

Answer(s): D

Explanation:

They can claim damages but not terminate the contract. If Blue company has broken a Condition, they would be able to terminate the contract, but this isn't the case for a breach of a Warranty. See p.43 for more details



A breach which is so severe that it goes to the root of the contract is known as what?

  1. fundamental breach
  2. condition breach
  3. major breach
  4. essence breach

Answer(s): A

Explanation:

This is a Fundamental Breach. Fundamental Breach and Major Breach are very similar- they're both really bad and can lead to damages and the termination of the contract. The difference is that a Fundamental Breach is so bad that it goes to the root of the contract - a breach so bad that the contract is basically worthless. For example if you make a contract with a supplier to have potatoes delivered but it turns out they don't sell potatoes, only apples, and they keep sending you apples instead of potatoes. This would be a fundamental breach because its something so fundamental to the contract that there's no point in the contract existing if there's a breach like this. Condition Breach and Essence Breach are made up words- they don't exist. P.44



Page 8 of 31



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