QUESTION 1
Choose the correct answer from the given options in each of the following questions. There is
only ONE correct answer for each question.
1.1 The difference between the passing of the risk rule and the rule of impossibility of
performance can be explained as follows:
A The risk rule is an exception to the general principles of the law of contract.
B The rule of impossibility of performance states that the contract terminates in the
event of supervening impossibility of performance.
C The rule of impossibility of performance states that the contract terminates in the
event of supervening impossibility of performance while the risk rule states that the
seller will be relieved of his/her duty to deliver if performance becomes impossible,
while the purchaser will still be liable for the purchase price if the contract is
perfecta.
D The risk rule states that the seller has a duty to care for the thing from the time of
the conclusion of the contract until the time of delivery.
E The risk rule will not apply if the parties agree that the risk would not pass to the
purchaser.
(2)
1.2 The following statement is true:
A A contract of purchase and sale is not perfecta if it is subject to a resolutive
condition.
B A contract of purchase and sale is perfecta if it is subject to a suspensive condition.
C A contract of purchase and sale is perfecta if the price is fixed or determinable, the
thing is specified and the parties have the intention to conclude a contract of
purchase and sale.
D After conclusion of a contract of purchase and sale, the purchaser bears the risk for
any accidental damage to the thing from the moment the contract is perfecta until
the time of delivery.
E The risk doctrine is applicable to all contracts.
(2)
1.3 The following is not a duty of the purchaser.
A Pay the purchase price.
B Accept delivery of the thing.
C Reimburse the seller for expenses.
D To bear the risk for any accidental damage to the thing if the contract is still subject
to a suspensive condition.
E Pay transfer duty in respect of immovable property unless the parties expressly
agree otherwise.
(2)
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