Contract law worksheet with answers

In English law, "past consideration" is generally:

1. ARequired for every contract
2. BGood consideration only between family members
3. CNot good consideration
4. DGood consideration if it was valuable

In England and Wales, a claim for breach of a simple (non-deed) contract must usually be brought within:

1. ATwelve years of the breach
2. BThree months of the breach
3. COne year of the breach
4. DSix years of the breach

A unilateral contract is one in which:

1. AOne party promises something in return for the other performing an act
2. BOnly one party signs the written document, so only that party is bound by it
3. COnly one party is allowed to terminate it
4. DThe terms are imposed by statute on one party

An actor withdraws from a TV film and the company cannot prove what profit the film would have made. It may claim:

1. AOnly nominal damages of a small sum
2. BIts wasted expenditure, including costs incurred before the contract
3. CPunitive damages to deter the actor
4. DIts estimated profits from the film, even if they are purely speculative

A customer signs a contract containing an exclusion clause without reading it. Absent fraud or misrepresentation, the clause is generally:

1. AVoid for unilateral mistake
2. BIncorporated only if it was explained orally
3. CNot incorporated, because it was not read
4. DIncorporated, because a signature binds the signer

A builder's job takes much longer and costs much more than planned because of labour shortages. Under Davis Contractors v Fareham UDC, the contract is:

1. AFrustrated, because the costs rose unexpectedly and substantially
2. BNot frustrated, because it has only become more onerous
3. CVoid, because the price was wrongly estimated
4. DAutomatically varied to a reasonable price

A wife guarantees her husband's business debts to a bank. Under RBS v Etridge (No 2), the bank should normally:

1. ASeek a court's approval of the guarantee
2. BRefuse the guarantee unless she has her own income
3. CHave the husband explain the risks to her
4. DObtain confirmation that a solicitor has advised her

Liquidated damages clauses are enforceable in English law when:

1. AThey protect a legitimate interest and are not out of all proportion to it
2. BThey are agreed orally only
3. COnly the party in breach benefits from them
4. DThey are set as high as possible, so that they deter either party from breaching