Contract law worksheet with answers

In English law, revocation of an offer takes effect:

1. AWhen the letter of revocation is posted
2. BOnly after a reasonable notice period
3. CWhen it is actually communicated to the offeree
4. DAs soon as the offeror privately decides

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

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

What is the most common remedy for breach of contract?

1. AA fine paid to the state
2. BDamages
3. CImprisonment
4. DAutomatic transfer of all the defendant's assets

Promissory estoppel can prevent a party from:

1. AMaking any new promises
2. BGoing back on a promise not to enforce strict legal rights, when the other relied on it
3. CSuing for any breach at all, including breaches entirely unrelated to the promise that it made
4. DEntering into future contracts

An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:

1. AWhen it is sent by the offeree
2. BWhen it is received by the offeror
3. CWhen it is confirmed by post
4. DWhen the offeror reads it a week later

Under section 2(1) of the Misrepresentation Act 1967, a person who made a false statement inducing a contract is liable in damages unless:

1. AThey prove they had reasonable grounds to believe, and did believe, it was true
2. BThe contract was made between two businesses
3. CThe claimant proves that the statement was made fraudulently and not merely carelessly
4. DThe statement was made orally and not in writing

A posts an offer. A week later A posts a revocation. B receives the offer and immediately accepts by telegram, and only later receives the revocation. Applying Byrne v Van Tienhoven:

1. AA contract was made when B accepted, because the revocation had not yet arrived
2. BThere was no contract, because the revocation was posted before B's acceptance was sent
3. CA contract was made only when B received the revocation
4. DThere was no contract, because offers by post can be revoked at any time

In a face-to-face sale, a rogue falsely claims to be a famous actor, pays with a worthless cheque, and sells the car on to an innocent buyer. Under Lewis v Averay, the first contract was:

1. AVoidable for fraud, so the innocent buyer got good title
2. BVoid, because cheques cannot pay for cars
3. CVoid for mistake, so the innocent buyer got no title
4. DValid, and the seller could only sue the rogue in tort