Contract law worksheet with answers

In English law, a term whose breach allows termination only if the consequences are serious is called:

1. AAn innominate (intermediate) term
2. BA warranty
3. CA condition
4. DA representation

What is the most common remedy for breach of contract?

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

A counter-offer has which effect on the original offer?

1. AIt rejects and ends the original offer
2. BIt accepts the original offer
3. CIt makes the original offer irrevocable
4. DIt has no effect at all

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

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

An actor withdraws from a TV film and the company cannot prove what profit the film would have made. It may claim:

1. AOnly nominal damages of a small sum
2. BPunitive damages to deter the actor
3. CIts wasted expenditure, including costs incurred before the contract
4. DIts estimated profits from the film, even if they are purely speculative

A holiday company provides a holiday far below the promised standard. Can the customer recover damages for disappointment?

1. AOnly if the customer suffered a physical injury
2. BNo, because mental distress is never recoverable in contract
3. COnly if the company acted dishonestly
4. DYes, because the contract's purpose was to provide enjoyment

In Carlill v Carbolic Smoke Ball Co, the court held that the advertisement was:

1. AA mere advertising puff with no legal effect, since no one could take it seriously
2. BA contract only with the newspaper
3. CAn invitation to treat
4. DA unilateral offer that could be accepted by performing the conditions

A client repudiates an advertising contract the same day it is made. The agency ignores this, displays the adverts for the full period and sues for the price. In White and Carter v McGregor:

1. AThe agency could recover nothing
2. BThe agency had to obtain a court order first
3. CThe agency could recover the full price
4. DThe agency could only claim damages after mitigating