Contract law worksheet with answers

An offer with no stated time limit lapses:

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

For commercial agreements, English courts presume that the parties:

1. AIntend to create legal relations
2. BIntend the agreement to be a gift
3. CIntend only a moral obligation
4. DDo not intend to create legal relations

An offeree asks whether the offeror would accept delivery in two parts, without rejecting the original terms. This is:

1. AAn acceptance
2. BA counter-offer
3. CA revocation
4. DA request for information

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. AFrustrated by the government licensing decision
2. BVoid, because licences were a condition precedent
3. CSuspended until more licences were issued
4. DNot frustrated, because the problem was self-induced

A sailor is to be paid only on completing a voyage, but dies part of the way. Under the strict rule applied in Cutter v Powell:

1. AThe ship owner had to pay compensation
2. BThe full wages were payable
3. CNothing was recoverable for the part performed
4. DA proportion of the wages was payable

A promises to keep an offer open until Friday. On Thursday, B hears from a reliable third party that A has sold the property to someone else. Under Dickinson v Dodds:

1. AB can accept and claim the property from the new buyer
2. BThe offer stays open until Friday, as A promised
3. CThe offer has been revoked, so B can no longer accept
4. DB can sue A for breaking the promise to keep it open

In a unilateral contract, once the offeree has started to perform the requested act:

1. AThe offeree becomes bound to complete performance
2. BThe full reward becomes payable immediately
3. CThe offeror generally cannot revoke while performance continues
4. DThe offeror can still revoke at any time before performance is completed

Two parties agree to continue negotiating for the sale of a business, with no fixed period. In Walford v Miles, the House of Lords held that a bare agreement to negotiate in good faith is:

1. AEnforceable, as an implied duty of good faith
2. BEnforceable only if made in writing
3. CUnenforceable, because it lacks certainty
4. DEnforceable as a lock-out agreement