Contract law worksheet with answers

Which equitable remedy corrects a written contract so it records what the parties actually agreed?

1. AQuantum meruit
2. BSpecific performance
3. CRectification
4. DRescission

An offeree asks whether the offeror would accept delivery in two parts, without rejecting the original terms. This is:

1. AA revocation
2. BA counter-offer
3. CAn acceptance
4. DA request for information

Anticipatory breach occurs when:

1. AA party breaches a term that has not yet been agreed
2. BA party shows, before performance is due, that it will not perform
3. CAn expert predicts, before performance is due, that a party will probably breach
4. DA party performs earlier than the agreed date

In Hadley v Baxendale, damages are recoverable for losses that:

1. AArise naturally from the breach or were in the reasonable contemplation of both parties
2. BWere caused in any factual sense by the breach, however unusual and unforeseeable they were
3. CThe claimant suffered only after the trial
4. DWere caused by a third party

A court will imply a term in fact into a commercial contract only if:

1. AIt would be reasonable and fair to both parties, even if it is not necessary
2. BIt is necessary for business efficacy or so obvious it goes without saying
3. CIt is usual in contracts in other industries
4. DIt would benefit the weaker party

Which of these will usually bar rescission for misrepresentation?

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

A carrier, knowing a small company depends on its deliveries to supply a major customer, refuses to continue unless paid a higher minimum price. The company agrees as it has no alternative. In Atlas Express v Kafco:

1. AThe new agreement was not binding, due to economic duress
2. BThe carrier committed a crime of extortion
3. CThe new agreement was binding as a free variation
4. DThe new agreement was binding, as the carrier's continued performance was a practical benefit

A flat is hired for two days to watch a coronation procession, which is cancelled because the King is ill. The contract does not mention the procession. In Krell v Henry:

1. AThe contract was void for common mistake
2. BThe contract was frustrated, because the procession was its foundation
3. CThe contract was not frustrated, because the flat was still available
4. DThe hirer had to pay as the risk was his