Contract law worksheet with answers

Who can usually enforce a contract?

1. AOnly lawyers
2. BAnyone who hears about it or is affected by it
3. CThe parties to the contract
4. DOnly the state

Which statement about silence as acceptance is correct in general?

1. ASilence counts as acceptance if the offeror says so
2. BSilence counts as acceptance after 24 hours
3. CSilence always counts as acceptance
4. DSilence usually does not count as acceptance

Under the contra proferentem rule, an ambiguous term is interpreted:

1. AAgainst the party who relies on it
2. BAs if it were not part of the contract
3. CIn favour of the party who drafted it
4. DIn favour of the stronger party

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 CThe offer has been revoked, so B can no longer accept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

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. AAutomatically varied to a reasonable price
2. BVoid, because the price was wrongly estimated
3. CNot frustrated, because it has only become more onerous
4. DFrustrated, because the costs rose unexpectedly and substantially

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

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

Liquidated damages clauses are enforceable in English law when:

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

A client repudiates an advertising contract the same day it is made. The agency ignores this, displays the adverts for the full period and sues for the price. In White and Carter v McGregor:

1. AThe agency could recover nothing
2. BThe agency had to obtain a court order first
3. CThe agency could recover the full price
4. DThe agency could only claim damages after mitigating