Contract law worksheet with answers

The duty to mitigate loss means that a claimant:

1. AMust accept any offer made by the party in breach
2. BMust prove the breach was deliberate
3. CMust sue within one month of the breach
4. DCannot recover for losses they could reasonably have avoided

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

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

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

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

A sailor is to be paid only on completing a voyage, but dies part of the way. Under the strict rule applied in Cutter v Powell:

1. ANothing was recoverable for the part performed
2. BA proportion of the wages was payable
3. CThe ship owner had to pay compensation
4. DThe full wages were payable

At an auction in England, the contract of sale is completed when:

1. AThe bidder makes the highest bid
2. BThe buyer collects the goods
3. CThe auctioneer brings down the hammer
4. DThe auctioneer puts the item up for sale

Promissory estoppel can prevent a party from:

1. ASuing for any breach at all, including breaches entirely unrelated to the promise that it made
2. BMaking any new promises
3. CGoing back on a promise not to enforce strict legal rights, when the other relied on it
4. DEntering into future contracts

A seller mistakenly offers hare skins at a price per pound instead of per piece. The buyer knew that prices were always quoted per piece. In Hartog v Colin and Shields:

1. AThere was a binding contract at the stated price
2. BThe court rewrote the price to per piece
3. CThe contract was voidable at the buyer's option
4. DThere was no contract, as the buyer knew of the mistake

Mutual mistake as to the existence of the subject matter (for example the goods no longer exist when contracting) usually makes the contract:

1. AVoid
2. BFully valid, with the buyer bearing the risk
3. CVoidable at either party's option
4. DValid, with compensation set by the court