Section 5

TOLES Advanced — Section 5 (Word Formation)

Complete the text. Type the correct form of the word given to the right of each gap.


The case of Developer v Purchasers arose out of allegations of materially misleading marketing practices in connection with the disposal of newly constructed residential units. The developer had disseminated promotional literature containing detailed statements as to floor area, internal configuration and proximity to ancillary amenities. The purchasers contended that such materials amounted to express factual REPRESENT, upon which they had reasonably and legitimately relied in electing to enter into the sale contracts.

The developer, however, sought to invoke a standard-form contractual provision asserting that all visual and descriptive materials were supplied for INDICATE purposes only. The court declined to uphold this argument, holding that where marketing communications convey objectively VERIFY information, such statements are capable of generating legally enforceable expectations notwithstanding the inclusion of generic disclaimers.

The evidential record established that the completed units were materially deficient in size as compared with the dimensions advertised, owing to the systematic INCLUDE of balconies and communal areas within the stated floor measurements. The court characterised this practice as constituting a materially MISLEAD commercial communication, the effect of which was not displaced by the presence of broadly drafted exclusionary clauses.

In reaching its conclusion, the court emphasised that the developer, as the party professionally ENGAGE in property development and sales, bore the primary burden of ensuring the substantive accuracy of its marketing output. The purchasers’ reliance was found to be both reasonable and objectively FORESEE, given the prominence and specificity of the representations contained in the promotional materials.

Accordingly, the court ordered a proportionate REDUCE of the purchase price, together with compensation for the purchasers’ demonstrable financial LOSS. The judgment is now routinely cited as authority for the proposition that marketing representations may form an integral component of the factual substratum of a transaction and that the legal LIMIT of sales disclaimers will be strictly construed in the context of property marketing.


 

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TOLES Advanced – Section 6 

Choose which section (A), (B), or (C) contains the error.


1. A purchaser alleges that the developer made misleading statements regarding the size of the unit, which were (1) ….. by the purchaser when entering into the contract.



2. The brochure provided by the developer stated that the apartment comprised 85 square metres, whereas the actual size (2) ….. significantly less.



3. The buyer claims that the developer was under an obligation to disclose accurate information and not (3) ….. potential purchasers.



4. A representation relating to the size of the property may amount to a misrepresentation even if it was made without (4) ….. to deceive.



5. The purchaser argues that he would not have proceeded with the purchase had the true measurements been disclosed (5) ….. the time of sale.



6. The contract makes reference to floor plans which, according to the buyer, inaccurately (6) ….. the actual dimensions of the unit.



7. The developer contends that any discrepancy in size was minor and does not constitute a material breach (7) ….. contract.



8. Under English law, a purchaser may be entitled to rescind the contract or claim damages where a misrepresentation (8) ….. occurred.



9. The buyer seeks compensation for the difference in value between the property as described and the property as actually (9) ….. .



10. If the court finds in favour of the purchaser, it may order the developer to pay damages or allow the contract to be (10) ….. aside.




 

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TOLES Advanced – Section 7 (Law of Tort Collocations) 

Read the extract from a contract and choose the correct fragment to complete (1) to (10).


FROM A SERVICES AGREEMENT (TORT LIABILITY & RISK ALLOCATION)

 Tort Liability

1. Nothing in this Agreement shall exclude or limit either Party’s liability for death or personal injury caused by its negligence, nor any liability which cannot be excluded as a matter of law; however, subject to the foregoing, the Supplier shall not be liable to the Client (1) arising out of or in connection with the Services.




2. The Supplier shall owe the Client no (2) in respect of any statement, estimate or projection provided during pre-contract negotiations, save where such statement is made fraudulently.




3. The Parties agree that the Supplier shall not be liable for (3), including (without limitation) loss of profit, loss of revenue, loss of goodwill, or loss of anticipated savings.




4. Any liability of the Supplier shall be limited to loss which is (4) and not too remote, and which was within the reasonable contemplation of the Parties at the Effective Date.




5. The Supplier shall not be liable for any loss arising from (5), being a new intervening act which breaks the chain of causation between any alleged breach and the loss claimed.




Contributory Fault

6. Where any loss is caused or contributed to by the Client, the Supplier’s liability shall be reduced (6) the extent that such reduction is just and equitable having regard to the Client’s share in the responsibility for the loss.




 Indemnity

7. The Client shall (7) the Supplier against all claims, proceedings, damages, losses, liabilities, costs and expenses arising out of any third-party claim alleging infringement caused by materials supplied by the Client.




8. The Client shall not settle any claim in a manner which imposes any obligation on the Supplier without the Supplier’s prior written consent, such consent (8).




 Exclusion of Pure Economic Loss

9. Subject to Clause 22.1, the Supplier shall not be liable for any (9) not arising from physical damage to property or personal injury, including loss arising solely from reliance on information.




 Vicarious Liability

10. The Supplier shall be responsible for the acts and omissions of its Personnel in the performance of the Services, but only to the extent that such acts and omissions are committed (10).





 

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TOLES Advanced – Section 8 (Index 8)

Read the extract from a commercial lease below. Using the definitions provided, find the underlined word or phrase in the contract that matches each definition.


FROM A COMMERCIAL LEASE

If the Rent or other charges or any part thereof shall be in arrears at any time after the due date (whether formally demanded or not) or if the Tenant shall become bankrupt or being a corporation go into liquidation whether compulsory or voluntary or if a receiver is appointed against all or any of the assets of the Tenant, in any such case it shall be lawful for the Landlord to re-enter into and upon the Premises or any part thereof, whereupon this Agreement shall absolutely determine and the deposit paid as hereinafter mentioned shall be absolutely forfeited to the Landlord.


1. “a legal entity that is separate and distinct from its owners”











2. “a person or business occupying property rented from its owner”











3. “the land and buildings owned by someone, especially by a business”











4. “the state of being formally declared unable to pay debts”











5. “be brought to an end”











6. “the state of owing money that should already have been paid”











7. “later in this document”











8. “surrendered to or lost to another party”











9. “property owned by a person or business available to meet debts”











10. “the process of bringing a company to an end to pay creditors”











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Section 9_The liability of businesses for negligence

Read the extract below and type the missing word from (1) to (10).


In determining the liability of a business for negligence, the claimant must establish that the defendant owed a legal (1) of care, that such duty was (2), and that the breach caused reasonably (3) damage. A business will generally be held to the standard of a (4) professional operating in the same field.

Where a business undertakes activities involving an increased risk of harm, it may be required to exercise a higher (5) of care. Failure to implement adequate safety procedures may constitute (6), even in the absence of deliberate misconduct.

A business may seek to limit its exposure through contractual (7); however, such clauses will be ineffective where they are found to be (8) or contrary to statute. Liability may also arise where loss is caused by the acts or omissions of (9) acting in the course of their employment, under the principle of vicarious (10).

 

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