Contract law worksheet with answers

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

1. AWarranty
2. BRepresentation
3. CInvitation to treat
4. DCondition

In England and Wales, a contract for the sale of land must be:

1. AMade orally in front of two witnesses
2. BIn writing, containing all agreed terms, and signed by both parties
3. CApproved by a court and registered with HM Land Registry before it is made
4. DMade only through an estate agent

What is a breach of contract?

1. AWithdrawing an offer before it is accepted, after promising to keep it open
2. BNegotiating a better price
3. CFailing to perform a contractual obligation without a lawful excuse
4. DRefusing to sign a contract

Under UCTA 1977, a business-to-business clause excluding liability for property damage caused by negligence is valid:

1. AAlways, because businesses can bargain freely
2. BOnly if signed by a company director
3. COnly if it satisfies the requirement of reasonableness
4. DNever, in any circumstances

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. BFrustrated by the government licensing decision
3. CVoid, because licences were a condition precedent
4. DSuspended until more licences were issued

A contract made under duress may be:

1. ATurned into a criminal offence only
2. BAutomatically valid with no remedy
3. CAvoided (set aside) by the pressured party
4. DEnforced against the pressured party in every case

In English law, a presumption of undue influence typically arises when:

1. AThe price agreed is substantially lower than the market price, whatever the relationship of the parties
2. BAny customer signs a contract with a bank
3. CThere is a relationship of trust and confidence and a transaction that calls for explanation
4. DAny contract is made between members of a family

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. BVoidable for the directors' misrepresentation by failing to disclose their misconduct
3. CVoid for common mistake about the contracts
4. DUnenforceable because severance needs a deed