What Did Leggatt J Say About the Types of Contracts

question 4

Multiple Choice

What did Leggatt J say about the types of contracts into which good faith could be implied in Yam Seng Pte Ltd v International Trade Corp Ltd (2013) ?

• A) The court should imply a term of good faith into all contracts.
• B) Good faith obligations are more likely to be required to give business efficacy to the parties' arrangements in longer term contracts requiring commitment and cooperation.
• C) Good faith duties should not be implied into contracts due to the risk of contradicting the parties' intentions.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Assembly Department

The section of a manufacturing plant where components are put together to form a finished product.

Conversion Costs

Costs related to turning raw materials into finished goods, typically including direct labor and manufacturing overhead.

Weighted-Average Method

A method of inventory costing or process costing that averages the costs of all goods available for sale or production, assigning an average cost to each unit.