Contract law worksheet with answers

An offer with no stated time limit lapses:

1. AAt midnight on the day it is made
2. BAfter a reasonable time
3. CAfter exactly seven days
4. DNever, unless revoked

Minors (under 18) entering contracts are generally:

1. ALiable only if their parents sign too
2. BBound in exactly the same way as adults, unless their parents object in writing
3. CProtected, so many of their contracts are not enforceable against them
4. DNever able to make any contract

According to Derry v Peek, a misrepresentation is fraudulent if the maker:

1. AMade it carelessly and without checking the facts, though honestly believing it
2. BMade a profit from the contract that followed
3. CKnew it was false, did not believe it, or was reckless whether it was true
4. DMade it in a written document

Police provide extra officers at a mine during a strike, beyond what their public duty requires, at the owner's request. The owner's promise to pay is:

1. AEnforceable only if approved by Parliament
2. BUnenforceable, because police protection can never be consideration for a promise
3. CVoid, because it is contrary to public policy
4. DEnforceable, because doing more than a public duty is consideration

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. BNot a misrepresentation, because the statement was true when it was made
3. CA breach of an implied condition of quality
4. DA misrepresentation, because he should have corrected the statement

A customer signs a contract containing an exclusion clause without reading it. Absent fraud or misrepresentation, the clause is generally:

1. AVoid for unilateral mistake
2. BNot incorporated, because it was not read
3. CIncorporated, because a signature binds the signer
4. DIncorporated only if it was explained orally

A seller mistakenly offers hare skins at a price per pound instead of per piece. The buyer knew that prices were always quoted per piece. In Hartog v Colin and Shields:

1. AThere was a binding contract at the stated price
2. BThe court rewrote the price to per piece
3. CThe contract was voidable at the buyer's option
4. DThere was no contract, as the buyer knew of the mistake

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 no loss, because late return is not a breach
2. BFor punitive damages, because the delay was deliberate
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