Contract law worksheet with answers

What is the most common remedy for breach of contract?

1. ADamages
2. BA fine paid to the state
3. CAutomatic transfer of all the defendant's assets
4. DImprisonment

Under the Unfair Contract Terms Act 1977, a business cannot exclude or restrict liability for:

1. ALoss of profit caused by a supplier
2. BDeath or personal injury caused by negligence
3. CAny damage to the other party's property
4. DLate delivery of goods in a business sale

A term that is fundamental to the contract, whose breach allows termination, is called in English law a:

1. AWarranty
2. BRepresentation
3. CInvitation to treat
4. DCondition

Promissory estoppel can prevent a party from:

1. AEntering into future contracts
2. BSuing for any breach at all, including breaches entirely unrelated to the promise that it made
3. CMaking any new promises
4. DGoing back on a promise not to enforce strict legal rights, when the other relied on it

A hotel guest sees an exclusion notice in her room only after booking and paying at reception. Under Olley v Marlborough Court Hotel, the notice is:

1. ANot part of the contract, because it came after formation
2. BBinding from the second night onwards
3. CPart of the contract, because she stayed in the room
4. DPart of the contract, because hotels may exclude liability

Which of these will usually bar rescission for misrepresentation?

1. AThe misrepresentation was innocent rather than fraudulent or negligent
2. BThe innocent party affirms the contract after learning the truth
3. CThe misrepresentation was made by a company
4. DThe contract was made in writing

Liquidated damages clauses are enforceable in English law when:

1. AThey are agreed orally only
2. BOnly the party in breach benefits from them
3. CThey are set as high as possible, so that they deter either party from breaching
4. DThey protect a legitimate interest and are not out of all proportion to it

A chartered ship is returned late, and the owner loses a very profitable follow-on charter. In The Achilleas, the House of Lords held the charterer was liable:

1. AFor punitive damages, because the delay was deliberate
2. BFor no loss, because late return is not a breach
3. CFor the whole profit lost on the follow-on charter, as it was foreseeable
4. DOnly for the market rate difference during the overrun period