Contract law worksheet with answers

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. BAn invitation to treat
3. CA unilateral contract
4. DAn acceptance

An offeree asks whether the offeror would accept delivery in two parts, without rejecting the original terms. This is:

1. AA counter-offer
2. BA revocation
3. CAn acceptance
4. DA request for information

The rule that consideration "must be sufficient but need not be adequate" means:

1. AIt must be paid before the contract is made
2. BIt must always be paid in money
3. CIt must be equal to the market value of the promise it is given in exchange for
4. DIt must have some value in law, but need not match the value of the promise

A holiday company provides a holiday far below the promised standard. Can the customer recover damages for disappointment?

1. AOnly if the customer suffered a physical injury
2. BYes, because the contract's purpose was to provide enjoyment
3. COnly if the company acted dishonestly
4. DNo, because mental distress is never recoverable in contract

Damages for breach of contract are generally meant to:

1. AGive the innocent party a profit beyond their loss
2. BPut the innocent party in the position as if the contract had been performed
3. CPunish the party in breach
4. DReturn both parties only to the position they were in before the contract was made

A buyer is told false figures about a business and is offered documents that would reveal the truth, but does not read them. Under Redgrave v Hurd:

1. AThe buyer can still rely on the misrepresentation
2. BThe misrepresentation becomes a term
3. CThe buyer loses all remedies by failing to check
4. DThe buyer can claim only half the loss

A chartered ship is returned late, and the owner loses a very profitable follow-on charter. In The Achilleas, the House of Lords held the charterer was liable:

1. AFor no loss, because late return is not a breach
2. BFor the whole profit lost on the follow-on charter, as it was foreseeable
3. CFor punitive damages, because the delay was deliberate
4. DOnly for the market rate difference during the overrun period

A husband who has left his wife signs a note promising to transfer the house to her if she pays off the mortgage. She does. In Merritt v Merritt, the promise was:

1. AEnforceable only because it was made by deed
2. BUnenforceable, because it was a domestic arrangement between husband and wife
3. CUnenforceable, because she gave no consideration
4. DEnforceable, because separated spouses are presumed to intend legal relations