Contract law worksheet with answers

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

1. AInvitation to treat
2. BCondition
3. CWarranty
4. DRepresentation

Under the contra proferentem rule, an ambiguous term is interpreted:

1. AIn favour of the party who drafted it
2. BIn favour of the stronger party
3. CAs if it were not part of the contract
4. DAgainst the party who relies on it

The rule that "consideration must move from the promisee" means:

1. AThe consideration must be handed to a court
2. BA person can enforce a promise only if they gave consideration for it
3. CThe promisee must always pay in cash
4. DThe promisor must provide all the consideration for the promise it makes

Under EU consumer law, a consumer who buys online usually has the right to withdraw within:

1. A3 days, only with a reason
2. B30 days, only if the goods are defective
3. C14 days without giving a reason
4. DNo time, because online sales are final

Under the Law Reform (Frustrated Contracts) Act 1943, money paid before a frustrating event is generally:

1. APaid into court for distribution
2. BRecoverable, though the court may let the payee keep some for expenses
3. CLost, because the loss must lie where it falls once the contract is frustrated
4. DPayable twice, as a penalty

A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:

1. AA mere opinion about future income
2. BA misrepresentation, because he should have corrected the statement
3. CNot a misrepresentation, because the statement was true when it was made
4. DA breach of an implied condition of quality

Under the EU Unfair Terms Directive, a non-negotiated consumer contract term is unfair if:

1. AContrary to good faith, it causes a significant imbalance to the consumer's detriment
2. BIt benefits the trader in any way, even where the consumer's rights are not significantly affected
3. CIt was written in small font
4. DThe consumer did not read it

A van is bought "on hire-purchase terms" with no further detail, and such terms varied widely in practice. In Scammell v Ouston, the House of Lords held:

1. AThere was a contract on the standard hire-purchase terms of the market
2. BThere was no contract, because the terms were too vague
3. CThere was a contract at a reasonable price
4. DThe seller's usual terms applied