Common Law Contract Principles Quiz

The principle that parties are free to negotiate and agree on contract terms without significant interference from the courts.

A principle that means "buyer beware." Buyers are responsible for verifying the quality and terms of a purchase.

A significant difference in the power or negotiating position of parties in a transaction.

A legal concept where a contract is deemed unfair due to a significant imbalance of power.

Terms automatically included in a contract, even if not explicitly stated.

Laws codifying exceptions to common law, protecting certain aspects of sales transactions.

A historical legal system based on precedent and judicial decisions, not written laws.

Contracts and dealings between businesses.

The process of creating a legally binding agreement between parties in a contract.

Provincial laws that set out rules for buying and selling goods.

Provincial laws that protect consumers from unfair business practices.

Federal law to ensure and maintain a competitive market.

The ability of a company to influence the market, often by reducing competition.

Pre-drafted contracts offered on a 'take-it-or-leave-it' basis, often with terms consumers may not fully understand.

Laws that specify how contracts are formed and enforced in online transactions.

The percentage of a particular market controlled by a company.

A situation where one party in a transaction has more information than the other.

Minimum standards or requirements that must be included in a contract to protect weaker parties.

Information that is inaccurate or intentionally deceptive to influence purchasing decisions.

A decision made after having all relevant information.

A market environment that ensures numerous choices and competitive pricing for consumers.

Essential terms automatically included in a contract for sale of goods, ensuring the product meets basic expectations. Breach allows the buyer to cancel the contract.

Minor terms automatically included in a contract for sale of goods, guaranteeing certain aspects of the product. Breach allows the buyer to sue for damages but not cancel the contract.

The seller is automatically liable for any failure of the product to meet implied conditions or warranties, even without negligence or fault.

The buyer's right to cancel the contract and return the goods if the seller breaches an implied condition.

A contractual clause attempting to remove the seller's liability for specific aspects of the product, often implied conditions or warranties.

To successfully exclude liability under Sale of Goods Act, the seller must clearly and explicitly exclude the specific conditions or warranties they wish to avoid.

Changing ownership of goods from seller to buyer when a contract for sale is completed.

A set of default terms the Sale of Goods Act assumes for contracts, unless specifically changed.

An agreement where a seller promises to transfer possession and title of specific goods to a buyer for a price.

The legal principle that only parties directly involved in a contract can sue for breach.

Items that can be physically touched and are not real estate, such as cars, phones, or clothing.

An agreement where someone is paid to perform a task or action, not sell a tangible good.

A transaction involving both tangible goods and services, with the Sale of Goods Act only applying if goods are the primary aspect.

Exchanging goods or services without using money.

Parties can agree to exclude the Act's automatic terms, but must do so explicitly and clearly.

An implied condition that goods must match their advertised description.

A case where the court emphasized the need for clear, direct wording when excluding implied conditions in the Sale of Goods Act.

The level of clarity required when excluding implied conditions in a contract, using unambiguous wording.

The specific implied condition that the parties are trying to remove from the contract.

Consumers often lack bargaining power with businesses, leaving them vulnerable to unfair contracts and misleading information. These laws protect consumers against exploitative practices.

These laws ensure a healthy market by preventing businesses from controlling the market too much and suppressing fair competition. This keeps prices fair and gives consumers more choices.

A pre-written, non-negotiable contract offered to consumers by businesses. They contain terms often not fully understood by consumers.

These laws provide a clear legal framework for contract formation and offer basic protection for both buyer and seller, reducing risk and uncertainty in transactions.

Misleading information harms competition by deceiving consumers and preventing them from making informed decisions. This leads to unfair market advantage for the deceptive business.

This bureau investigates and enforces competition laws to prevent companies from unfairly controlling the market. It ensures a fair and competitive marketplace for all.

By protecting against unfair business practices that restrict competition, these laws create a level playing field for new businesses, allowing them to compete fairly for market share.

This occurs when one party has more information than the other. It can lead to unfair outcomes as the party with less information may make decisions based on incomplete knowledge.

It's a Latin phrase meaning 'buyer beware'. It implies that the buyer is responsible for carefully examining and verifying the product before purchase.

They promote a good reputation for the business by demonstrating their commitment to ethical practices and responsible products. This attracts customers and builds trust.

These are essential terms included in contracts to protect weaker parties, ensuring they receive a minimum level of value and fairness in the deal.

Healthy competition allows consumers to have more choices and access to accurate information, enabling them to make better informed purchasing decisions.

These laws codify exceptions to the 'buyer beware' principle, offering basic protections to consumers who may have limited bargaining power.

Market share is the percentage of a market controlled by a company, while market power refers to the company's ability to influence the market, often through strategies that reduce competition.

They ensure fair prices, prevent monopolies, and promote diversity in the marketplace. This gives consumers a greater variety of products and services to choose from.