According to Section 1(5) of C(RTP)A, a Third Party Qualifying

question 3

Multiple Choice

According to section 1(5) of C(RTP) A, a third party qualifying under section 1 can enforce a term of the contract and claim 'any remedy that would have been available to him in an action for breach of contract if he had been a party to the contract'. Since the third party's rights are derivative of the promisee's, the starting point is that the scope of his claim should coincide with that of the promisee's. However, there are a number of exceptions to this starting point. Which of the following statements is false?

• A) The promisor can rely on any counterclaim against the promisee against the third party's claim.
• B) The promisor can rely on any counterclaim he already has against the third party's claim.
• C) The third party cannot appeal to section 2(2) of the Unfair Contract Terms Act 1977 (UCTA) to defeat exemption clauses which exclude negligence liability causing loss or damage (other than personal injury or death).
• D) The third party cannot rely on the contract party's rights set out in the Law Reform (Frustrated Contracts) Act 1943 or the Misrepresentation Act 1967.

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Definitions:

FIFO Cost Flow

An inventory valuation method that assumes the first items placed into inventory are the first ones to be sold.

Ending Inventory

The overall worth of products on hand for sales at the closure of an accounting cycle.

Inventory Items

Specific objects or products that are part of a company's inventory, available for sale or used in production.

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the profit made from sales before deducting operating expenses.