Contract law worksheet with answers

The rule that consideration "must be sufficient but need not be adequate" means:

1. AIt must have some value in law, but need not match the value of the promise
2. BIt must be equal to the market value of the promise it is given in exchange for
3. CIt must always be paid in money
4. DIt must be paid before the contract is made

In English law, a promise made in a deed is enforceable even without:

1. AA signature
2. BDelivery of the deed
3. CWriting
4. DConsideration

Rescission of a contract means:

1. ASetting the contract aside so the parties return to their original positions
2. BOrdering a party to perform as promised
3. CEnding the contract for the future only and claiming damages for lost profits
4. DCorrecting the wording of a written contract

What is consideration in common law contracts?

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

Sailors are promised extra wages for sailing a ship home after two crew members desert, but they do no more than their contract already required. In Stilk v Myrick the promise was:

1. AEnforceable because the captain agreed freely
2. BEnforceable as a practical benefit
3. CUnenforceable for lack of consideration
4. DUnenforceable because it was made at sea

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

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

A council writes that it "may be prepared to sell" a house to a tenant and invites a formal application. The tenant applies, then the council changes its policy. In Gibson v Manchester City Council, the House of Lords held:

1. AThe council was bound by estoppel to sell
2. BA contract was formed when the council's letter was sent to the tenant
3. CThere was no contract, because the letter was not an offer
4. DA contract was formed when the tenant applied

In Great Peace Shipping v Tsavliris Salvage, the Court of Appeal held that a contract is void for common mistake only if the mistake makes performance:

1. ACommercially less attractive for one party
2. BDifferent from the contract in a minor detail
3. CImpossible or essentially different from what the parties agreed
4. DMore expensive to carry out than both parties had expected when contracting