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NEW QUESTION 46
Tyrone Enterprises has just come out of a meeting with one of its suppliers Bob. The meeting has not gone well and the contract has become frustrated. What does this mean?
Answer: D
Explanation:
Frustrated is when "a situation has occurred which means that the contract can no longer be per-formed". The situation is one which is outside of the control of either party and its no one's fault that this has happened. A common example of this is when contracts were unable to be performed due to Covid-19 and the national lockdown. The government mandated everyone 'stay at home' and therefore some business contracts were unable to be fulfilled, and were therefore 'frustrated' (for example the delivery of popcorn to cinemas- the cinemas were told by the government to close so the popcorn couldn't be delivered. This wasn't anyone's fault). See p. 47 for more information on Contract Frustration
NEW QUESTION 47
A failure to perform a provision of a contract which does not affect the end performance of the contract is known as what?
Answer: A
Explanation:
This is a minor breach. This is the definition as given in the study guide on p. 48
NEW QUESTION 48
Lollypop Manufacturer has a long standing contract with Retailer A.
They are three years into a five year contract and have been providing lollypops at 10p each since the beginning of the contract. Due to changes in the supply chain Lollypop Manufacturer would like a price increase. Can this be done?
Answer: A
Explanation:
yes- if there is a variation clause and both parties agree. This would usually be written in as a 'price adjustment clause' but if it's not, then it could be agreed and signed by both parties as a 'contract variation'. See p.16 for more details
NEW QUESTION 49
Which of the following will you put into box 4?
Answer: D
Explanation:
The correct answers are as follows:
This is the specification as it talks about types of fabric.
NEW QUESTION 50
Kelly and Chloe have a contract in which Kelly provides MRO supplies to Chloe's manufac-turing business. Kelly has committed a fundamental breach but Chloe has not suffered any loss. Chloe has chosen to terminate the contract. Can she claim damages?
Answer: B
Explanation:
3 is the correct answer. Damages cannot be claimed is there has not been any loss. This is stated on p. 122
NEW QUESTION 51
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