Q1: Exemption clauses are often used when there is unequal bargaining power between buyer and seller in the marketplace, with the result that..

Select one:

a.

Sellers inserted the clauses in standard form contracts to protect themselves from liability for defects

b.

All of these

c.

Courts, however, will construe the terms of an exemption clause strictly against the party who drafted it

d.

The buyers, according to the terms of the clauses, were often required to perform despite a defect, price change, or the seller's failure to comply with an implied warranty

Q2:

If the buyer of a business takes his decision to buy a business based on the representation of the seller of the business and did not consult any expert on the matter, can the buyer later argue relying on a misrepresentation by the seller on the same subject, in case he incurs losses due to wrong representation of the seller?

Select one:

a.

Buyer will always have a remedy against the seller for misrepresentation irrespective of the situation

b.

Probably not, because buyer should have consulted an expert and relied on the expert report, not the sellers statement

c.

Probably, if there was no express clause in the sales agreement requiring the buyer to consult and refer to a report by an expert on the matter

d.

Yes, the buyer was entitled to rely on the sellers representation regardless of what other information buyer has been given by any expert

Q3: Which of the following statements is true w.r.t ratification of an agency?

a.

contractual capacity of the principal is irrelevant as far as ratification of agency is concerned.

b.

ratification may only be made by a P who was in existence at the time of making the contract

c.

ratification can be for part of the contract or of the whole contract

d.

None of the given statements is true