Generally, for misrepresentation, a statement of opinion ____________.

is a misrepresentation if there has been erroneous statement of law.

must always be followed by an invitation to the other party to verify the statement.
may be a misrepresentation if the representor had access to the relevant facts and had no
reasonable ground for holding such an opinion.
can never form the basis of a misrepresentation.
Identify which of the following(s) must be established in order for the exemption clause
to be valid.

I. The exemption clause is validly incorporated into the contract.

II. The exemption clause covers the loss or injury which occurred.
III. There must not be any extraordinary facts which prevent the operation of the
clause.
IV. The exemption clause must not contravene the Unfair Contract Terms Act of
Singapore.

I and II
I, II and III
II and III
I, II, III and IV
In some relationships, if undue influence is alleged, the law will presume it exists unless
proven otherwise. Which of the following relationships falls into this group?

Between two good friends.

Solicitor and client.
Vendor and purchaser.
Husband and wife.
For a false statement to be a misrepresentation, ____________.
the statement must be one of the inducing causes for the representee to enter into the
contract.
the statement must be the sole inducing cause for the representee to enter into the
contract.
the representee must have possessed the intention to commit fraud.
the representee must have had the opportunity to verify the truth of the statement.
What was a key objective in introducing Sections 35 and 36 of the Civil Law Act in
2009?

To protect young people from being sued.

 To protect young people from entering into contracts as they may not fully understand
the consequences of their actions.
To support an entrepreneurial society where young people have contractual capacity to
start and conduct a business.
To ensure every contract that is formed in Singapore is legally binding and enforceable.
Identify the best illustration of a mutual mistake from the following situations.
Party A and Party B did not realise that Party A’s car which Party B wanted to purchase
was destroyed at the time of the contract.
Party A thought that he was buying a car from Party B. Party B realized that Party A
was mistaken.
Party A did not realise that he was signing a guarantee. He thought that it was simply a
document certifying his name and passport number.
Party A believed that the contract price is S$1,000 whereas Party B thought that the
contract price is S$900.
What are the remedies available to an innocent party if there has been a breach of a
condition?

I. Option to affirm the contract

II. Option to claim damages
III. Option to discharge the contract
IV. Option to sue for misrepresentation

I and II
III and IV
I, II and III
I, III and IV
Among the following scenario(s), identify and pick the scenario(s) where terms can be
implied into a contract.

I. When certain terms have been customarily accepted as part of the contract.
II. When certain obligations are considered to be universal practice.
III. When a term is considered by the court as having been intended by the parties,
so as to ensure business efficacy.
IV. When there is an applicable statute that provides for the implication of terms into
a contract.

I, II and III
III and IV
I, II, III and IV
I and II
Which of the following are vitiating factors, i.e., factors which render a contract
unenforceable?
I Mistake
II Ignorance of the law
III Duress
IV Undue influence

II and IV
I only
I, III and IV
I and III
In general, which of the following criteria must be satisfied in order to sever illegal parts
of the contract?

I The promises in the contract are severable in nature.

II It is possible to sever the void part by deleting the offending words without
redrafting the clause or the contract.
III The severance will not change the basic nature of the contract.
IV The severance will not breach the Unfair Contract Terms Act of Singapore.

I, II, III and IV

I and III
I and II
I, II and III
Which of the following are examples of illegal contracts?

I Contracts which benefit a foreign enemy.

II Contracts which are made with the intention of deceiving another party.
III Contracts relating to wagering and gaming, in general.
IV Contracts which are used to prevent a person from competing with another
party, in general.

I, II and III
II and III
I and II
I, II, III and IV
In cases where illegality is confined to a specific part of a contract, ____________.
the party who drafted the illegal clauses would have to pay compensation to the other
party.
the entire contract is void as the illegal clause has tainted the contract.
the illegal clause may be void but the rest of the contract may still be valid.
 the parties would have to enter into a new contract.
The case of Bannerman v White (1861) supports the guideline that ____________.
the longer the time interval between the time at which the statement is made and the
point at which the contract is formed, the more likely that the statement is unimportant.
the greater the emphasis, the more likely that a statement is important to one or both
parties, and which makes the statement more likely to be a term.
the maker of a statement should always place great emphasis on a statement to ensure
the other party is bound to the contract.
a party should always encourage the other party to verify the statements made.
An exemption clause is incorporated into a contract by ____________.

stating that one party has given sufficient consideration for the exemption clause.
way of signature or notice.
including a term in the contract stating that it complies with the Unfair Contract Terms
Act.
ensuring that the contract is executed under seal.
Why is it important to distinguish between puffs and terms?

A written contract must state clearly which clauses are puffs and which are terms.
Breaching terms will result in less serious consequences; hence, the parties may feel
more comfortable breaching a term instead of a puff.
Before a contract is signed, it is essential that the parties make many statements that are
puffs so that they can induce each other to enter into a contract.
Breach of puffs does not result in any legal effect whereas a breach of term results in
serious legal consequences.
Which of the following best describes the concept of incapacity as a vitiating factor?
All persons who have contracted with a minor are not entitled to protection under the
law.
The age of contractual capacity in Singapore is 21 years.
People who are of unsound mind can still enter into contracts if they have been provided
with legal advice.
The law views certain persons such as a young child and people who are intoxicated to
lack the capacity to enter into a contract.
Which of the following is/are element(s) of misrepresentation?

I It is a false statement of fact.

II The other party relied on the false statement.
III The false statement induced the other party to enter into the contract.
IV The other party who relied on the false statement did not suffer any loss.

II and III
 I, II, III and IV
I and II
I, II and III
At common law, which of the following constitutes criteria which a restraint of trade
clause must fulfill in order to be valid?

I The clause must protect a legitimate interest of the party imposing the clause.
II The clause must protect the business by minimizing competition.
III The clause must be reasonable in duration.
IV The clause must not be contrary to public interest.

I, II, III
III and IV
I, III, IV
II and IV
To establish undue influence in a relationship, which of the following criteria must be
established?

I one party had the capacity to influence the other party

II the influence was exercised
III its exercise was undue
IV its exercise brought about the transaction

I and II
I, II and IV
I, II, III and IV

I and III
The law has developed several rules which attempt to balance the interests of the minor
and the other party. These rules are found in ____________.

I Sale of Goods Act

II Common law
III Minors’ Contracts Act
IV Application of English Law Act

I and II
I, II, III and IV
I, II and III
I and III