XYZ Ltd contracts with Cross Ltd. to manufacture and supply 100 cases of a special cigar using a specific drug called SuperX. Cross Ltd agreed to pay the contract money, $10,000, to XYZ Ltd but before the delivery takes place the Government introduced a law banning the manufacture and supply of SuperX. Can Cross Ltd enforce the contract?

Select one:

a.No, the contract is frustrated.

b.No, there is a breach of contract.

c.Yes, because Cross Ltd has already paid the contract price of $10,000.

d.Yes, it was a legal contract when it was made.

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.All of these

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

c.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

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

What does the insurance exception to the Doctrine of Privity of contract state?

Select one:

a.Both b and c above

b.The third-party may also enforce the contract if the insurance company agreed to confer the benefit to the third party under the insurance contract

c.Only the parties to the contract may enforce it

d.A contractual term that imposes an obligation on a third party is binding upon that party

Which of the following would be a frustrating event?

Select one:

a.Contract was with a band to perform at an event on Christmas day but injury to the manager of the band make him unable to attend the performance (band can still perform at the event).

b.The resignation of the manager of the company with which contract was entered.

c.A new law making the performance of contract difficult but still legal.

d.An outbreak of war between the UK and Germany and the contract is between two companies, one from UK and the other from Germany.