Sam is a factory manager and has purchased a new fixed asset on a loan purchase agreement. There is a forbearance agreement between the Factory and the provider. What does this mean?

• A.the lender agrees to give the breaching party a period of time as an extension by which to meet their obligations
• B.the lender requires the buyer to assign a guarantor in case they cannot make payments
• C.the lender is able to demand full payment of outstanding balances in case of none pay-ment
• D.the lender is able to charge interest on the purchase in line with RPI

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Molly is a wedding planner who has just set up as a sole-trader. She has a meeting with a po-tential couple to organise their wedding. The couple is extremely risk adverse and have asked Molly to email them a copy of her insurances. Which insurances should Molly send? Select TWO

• A.Products Liability Insurance
• B.Employers Liability Insurance
• C.Professional Indemnity Insurance
• D.Public Liability Insurance

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Which of the following will you put into box 3?

• A.anticipatory breach
• B.fundamental breach
• C.payment terms
• D.specification

Correct Answer: B

The correct answers are as follows:

This is a fundamental breach. The key here is the scenario says 'huge issue'. Out of the four scenarios this one is the most important / serious and therefore will be the fundamental breach.

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Which of the following will you put into box 5?

• A.Mediation
• B.Arbitration
• C.Litigation
• D.Negotiation

Correct Answer: D

The correct answers are as follows:

This is negotiation - no third party is mentioned and there is a face-to-face meeting in private

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Which of the following will you put into box 5?

• A.Condition
• B.Warranty
• C.Innominate Term

Correct Answer: A

The correct answers are as follows:

This is a condition as it is fundamental to the contract.

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