Contract law worksheet with answers

In English law, a newspaper advertisement offering goods for sale at a stated price is usually:

1. AAn invitation to treat
2. BA unilateral offer to all readers
3. CA collateral contract with each reader
4. DAn acceptance of future orders

Under the Unfair Contract Terms Act 1977, a business cannot exclude or restrict liability for:

1. AAny damage to the other party's property
2. BLoss of profit caused by a supplier
3. CDeath or personal injury caused by negligence
4. DLate delivery of goods in a business sale

A shop displays a jacket with a price tag in its window. In English law this is usually:

1. AA binding offer to sell at that price
2. BA unilateral contract
3. CAn acceptance
4. DAn invitation to treat

A creditor agrees to take £600 in full settlement of a £1,000 debt that is due, then sues for the other £400. Under Pinnel's Case and Foakes v Beer, the creditor:

1. ACan usually recover the £400
2. BMust give back the £600 first
3. CCannot recover anything more
4. DCan recover only if the agreement was oral

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

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

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

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

A pays B money to bet on shares using insider information, which is illegal. The bet never happens and A wants the money back. In Patel v Mirza, the Supreme Court held:

1. AA could not recover, because no claim can be founded on an illegal agreement
2. BA could recover only half the money
3. CA could recover the money, applying a policy-based approach to illegality
4. DThe money passed to the state as illegal proceeds

In a face-to-face sale, a rogue falsely claims to be a famous actor, pays with a worthless cheque, and sells the car on to an innocent buyer. Under Lewis v Averay, the first contract was:

1. AVoidable for fraud, so the innocent buyer got good title
2. BValid, and the seller could only sue the rogue in tort
3. CVoid for mistake, so the innocent buyer got no title
4. DVoid, because cheques cannot pay for cars