Contract law worksheet with answers

A term that is fundamental to the contract, whose breach allows termination, is called in English law a:

1. AInvitation to treat
2. BRepresentation
3. CCondition
4. DWarranty

In English law, "past consideration" is generally:

1. AGood consideration only between family members
2. BNot good consideration
3. CRequired for every contract
4. DGood consideration if it was valuable

When can an offer generally be withdrawn?

1. AOnly after it has been accepted
2. BOnly by a court
3. CNever, once it has been made
4. DBefore it has been accepted

A fishing company receives fewer licences than it needs and chooses to assign them to its other ships, not the chartered one. In Maritime National Fish v Ocean Trawlers the charter was:

1. ANot frustrated, because the problem was self-induced
2. BSuspended until more licences were issued
3. CFrustrated by the government licensing decision
4. DVoid, because licences were a condition precedent

A court will imply a term in fact into a commercial contract only if:

1. AIt is necessary for business efficacy or so obvious it goes without saying
2. BIt would be reasonable and fair to both parties, even if it is not necessary
3. CIt would benefit the weaker party
4. DIt is usual in contracts in other industries

Frustration of contract occurs when:

1. AThe contract was badly drafted
2. BAn unforeseen event makes performance impossible or radically different
3. COne party regrets the bargain
4. DPerformance becomes more expensive or more difficult than either party expected

A seller quotes on its terms with a price variation clause. The buyer orders on its own terms without that clause, with a tear-off acknowledgement slip, which the seller signs and returns. In Butler Machine Tool v Ex-Cell-O, the contract was on:

1. ANo terms, because there was no contract
2. BThe buyer's terms, because the seller accepted its counter-offer
3. CA mixture of terms chosen by the court as fair
4. DThe seller's terms, because it sent its terms and price variation clause first

A contract states it can be varied only in signed writing. The parties later agree an oral variation. In MWB Business Exchange v Rock Advertising, the Supreme Court held:

1. AThe clause was void as against public policy
2. BThe oral variation was ineffective, because the clause was binding
3. CThe variation was effective as it had consideration
4. DThe oral variation was effective, because parties can always vary orally