Multiple Choice

Q1 Which of the following is incorrect:

A If an agreement is made in a social or domestic context, there is a presumption that the agreement was not intended to B be legally enforceable.

C Pursuant to section 64 of the Australian Consumer Law, any term of a contract that seeks to exclude, restrict or modify the guarantees in the Australian Consumer Law is automatically void;

D The law of contract does not require each party to pay a fair or adequate price;

A promise which is not supported by consideration may still be enforced in accordance with the equitable doctrine of unconscionability;

E Legislation can be enacted by parliaments in every state in Australia;

Q2 Marky entered into a written contract with Joey for the purchase of a pinball machine. Marky signed the contract without reading it. The contract includes the following provision:

This agreement contains all the terms and conditions under which I agree to purchase the machine specified above and any express or implied condition, statement or warranty, statutory or otherwise, not stated herein is hereby excluded.

Joey was in the business of selling pinball machines. When Marky took the machine home he realized it didn't work and all the electronic components had corroded. Based on the following information, which of the following is correct:

A Both b. and c. are correct.

B If Joey breached the contract, Marky could sue him and potentially get damages.

C Marky could sue Joey for damages because Joey has breached the implied term in the Sales of Goods Act that goods must be of merchantable quality.

D Marky could sue Joey for damages because Joey has breached the implied term in the Sales of Goods Act that goods must be fit for the purpose.

E Based on what was said by the court inL'Estrange v Graucob[1934] 2 KB 394, this term would not be binding on Marky because he did not read the terms of the contract prior to signing it.