Contract law worksheet with answers

A term that the parties did not state, but which a court reads into the contract, is:

1. AAn express term
2. BA condition precedent
3. CAn implied term
4. DA collateral warranty

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

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

Under the contra proferentem rule, an ambiguous term is interpreted:

1. AAs if it were not part of the contract
2. BIn favour of the party who drafted it
3. CAgainst the party who relies on it
4. DIn favour of the stronger party

A former wife sues for maintenance her ex-husband promised, relying only on promissory estoppel because she gave no consideration. In Combe v Combe:

1. AShe failed, because family agreements are never legally binding on either party
2. BShe failed, because promissory estoppel is a shield, not a sword
3. CShe succeeded, because she relied on the promise
4. DShe succeeded, because the promise was made in writing

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

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

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 the offeror reads it a week later
3. CWhen it is received by the offeror
4. DWhen it is confirmed by post

Mutual mistake as to the existence of the subject matter (for example the goods no longer exist when contracting) usually makes the contract:

1. AVoidable at either party's option
2. BVoid
3. CValid, with compensation set by the court
4. DFully valid, with the buyer bearing the risk

Asked to "telegraph lowest cash price" for a property, the owner replies "Lowest price £900". The enquirer then telegraphs that he accepts. In Harvey v Facey:

1. AThere was a contract at a reasonable price
2. BThe reply was a counter-offer, which the enquirer's telegram then accepted
3. CThere was no contract, because stating a lowest price was not an offer
4. DThere was a contract at £900