Contract law worksheet with answers

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

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

Which English statute allows a third party to enforce a contract term in some cases?

1. AContracts (Rights of Third Parties) Act 1999
2. BLaw Reform (Frustrated Contracts) Act 1943
3. CUnfair Contract Terms Act 1977
4. DMisrepresentation Act 1967

In English law, agreements between spouses living together in harmony are presumed to be:

1. ABinding only for one year
2. BBinding only if witnessed
3. CNot intended to be legally binding
4. DAlways legally binding

In English law, the "postal rule" means an acceptance sent by post takes effect:

1. AWhen the offeror replies
2. BWhen the letter arrives
3. CWhen the letter is read
4. DWhen the letter is posted

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

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

What is consideration in common law contracts?

1. AThe intention to create legal relations shown by both parties
2. BSomething of value given in exchange for a promise
3. CCareful thought before signing
4. DThe written form of a contract

An actress is wrongly denied the chance to take part in the final stage of a competition in which some finalists would win prizes. In Chaplin v Hicks:

1. AShe could recover damages for the loss of a chance
2. BShe could recover only her travel expenses
3. CShe could recover nothing, because her loss was uncertain
4. DShe could recover the full value of a prize

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. BOnly for the market rate difference during the overrun period
3. CFor no loss, because late return is not a breach
4. DFor the whole profit lost on the follow-on charter, as it was foreseeable