True or False

1* In New Zealand a draft Act of Parliament is a Bill which passes through various stages of discussionand becomes law when signed by the British Queen's representative in NZ, the solicitor-general

2* A building contract over $20,000 in value is not legally enforceable unless it is in writing

3* Terms of a contract have to be made by prior express agreement as terms cannot be impliedinto a contract

4* A term that is necessary for business efficacy can be implied into a contract

5* If an agreement has been entered into in writing and both parties signed the agreement but oneparty did not willingly sign the agreement, the agreement is unenforceable

6* It automatically follows that if one party to an agreement has used its economic position topersuade the other party to agree to disadvantageous terms, that the agreement is not enforceable

7* Being in breach of a contract by not doing what a party agreed to do, makes a party liable to the otherparty in damages as money to compensate that party for the harm or loss caused by the breach

8* Once an agreement is made between two parties then providing there is an agreement for thepayment of some money, the agreement is always a legally enforceable contract

9* The element of "consideration" in a contract means that the parties have thought about it and haveconsidered their intentions under the agreement

10* An agreement may have the basic components of a contract but unless there was an intention tocreate legal relations when it was made, it is not a legally enforceable agreement

11* Capacity to contract concerns a party's mental ability to be able to know what they are doing whenmaking a contract for example by reason of age or mental state, either permanent or temporarytherefore it is impossible to make a legally binding contract after drinking alcohol

12* A deed is an agreement made in a specific form which, unlike a contract, can create legallybinding obligations without the presence of consideration1

13* Before legislation changed the position, an advertisement offering to sell an article at a certainprice did not bind the seller to have to sell at the advertised price because it was not an offer butwas only an invitation to treat inviting the buyer to offer to buy at the advertised price which theseller could accept or reject

14* If an offer is accepted by post then the 'postal rule' says the offer is accepted when the letteris put into the letter box by the offeree regardless of whether the offeror ever received that letter

15* Even if the Courts consider the parties real intention was to enter into a binding agreement unlessthe nature of the agreement is 100% certain on every point they will not enforce an agreement

16* If agreements are made in a business setting there is a presumption by the Court that there was nointention to create legal relations if one party actually thought that when it entered the agreement

17* If agreements are made in a social or family setting there is a presumption by the Court that therewas an intention to create legal relations which either party may argue against

18* A legally binding contract can be made by A promising to do something for B in exchange for apromise by B to do something for A39* Some legislation in New Zealand applies solely to construction work including theConstruction Contracts Act 2002 and the Building Act 2004

20* A builder and a property owner agree a price to extend a house, which requires a building consent buthas not yet been applied for. Shortly before the builder is due to start work, the owner tells thebuilder she will not be proceeding with the work and because there is no building consent, then unders73(1) Contract and Commercial Law Act 2017 because they had not got a building consent whenthey made their agreement, it was an illegal contract so the builder cannot take action against herto recover as damages, the profit etc. the builder would have made if the work had proceeded

21* A misrepresentation is an untrue statement of a future fact for the purposes of the Contract andCommercial Law Act 2017 e.g. the statement made to sell agricultural land that it will produce acertain quantity of corn per acre next year which it fails to do

22* A tells B that A's house is constructed entirely with treated timber. B relies on that being true and buysA's house but later discovers the timber is untreated and the house leaks and rots. B says she has twooptions under the Contract and Commercial Law Act 2017 being to either keep the contract in placeand claim damages or cancel the contract but lose entitlement to damages

23* A tort is a 'wrong' which when committed by someone [a tortfeasor] gives someone harmed by ita right to take action, for example the tort of trespass by placing building materials used to build ahouse on an adjacent section without the owner's permission would entitle the owner to have thematerials removed and receive compensation for any damage caused

24* There were once in NZ three types of trespass, to land, to property, and to a person, and trespass toa person is now superseded by the crime of assault in New Zealand, the difference beingthat trespass to a person was once only actionable if the 'injured' person pursued it whereas theState can take action against a person committing assault [refer Crimes Act 1961] and punish them

25* Nuisance is similar to trespass to land but whereas trespass is direct intrusion to land, nuisanceis indirect intrusion such as: smells, fumes, noise, smoke, dust, noxious weed seeds, cropspray and so on which leaves one area and intrudes upon another to affect the 'quiet enjoyment'by a person of their land

26* There is a single category of the tort of nuisance

27* Nuisance is the most common category of tort raised in court cases involving construction work48* Negligence is the most common tort applied in court cases generally

29* If someone does something with insufficient care and skill thereby causing harm to another persons/he is automatically liable to compensate that person for the harm caused

30* Whether a person is liable to another person for the consequences of his/her negligence dependson whether in such circumstances the Court has found that s/he owes a duty of care to that person