Contract law worksheet with answers

For commercial agreements, English courts presume that the parties:

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

A counter-offer has which effect on the original offer?

1. AIt has no effect at all
2. BIt accepts the original offer
3. CIt makes the original offer irrevocable
4. DIt rejects and ends the original offer

Rescission of a contract means:

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

Which of these will usually bar rescission for misrepresentation?

1. AThe misrepresentation was made by a company
2. BThe contract was made in writing
3. CThe innocent party affirms the contract after learning the truth
4. DThe misrepresentation was innocent rather than fraudulent or negligent

A decorator finishes the work but with minor defects that are cheap to fix. Under Hoenig v Isaacs, the decorator is entitled to:

1. ANothing, because performance was not exact
2. BThe full price with no deduction
3. COnly payment for the materials used
4. DThe price less the cost of putting the defects right

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. BSuspended until more licences were issued
3. CVoid, because licences were a condition precedent
4. DNot frustrated, because the problem was self-induced

An employer pays large severance sums to two directors, later discovering it could have dismissed them for nothing because of their earlier misconduct. In Bell v Lever Bros, the agreements were:

1. AValid, because the mistake about quality was not fundamental enough
2. BVoid for common mistake about the contracts
3. CUnenforceable because severance needs a deed
4. DVoidable for the directors' misrepresentation by failing to disclose their misconduct

A husband who has left his wife signs a note promising to transfer the house to her if she pays off the mortgage. She does. In Merritt v Merritt, the promise was:

1. AUnenforceable, because she gave no consideration
2. BEnforceable, because separated spouses are presumed to intend legal relations
3. CUnenforceable, because it was a domestic arrangement between husband and wife
4. DEnforceable only because it was made by deed