Contract law worksheet with answers

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

1. AAn acceptance
2. BA revocation
3. CA counter-offer
4. DA request for information

What is the most common remedy for breach of contract?

1. AA fine paid to the state
2. BAutomatic transfer of all the defendant's assets
3. CImprisonment
4. DDamages

Anticipatory breach occurs when:

1. AA party breaches a term that has not yet been agreed
2. BA party shows, before performance is due, that it will not perform
3. CA party performs earlier than the agreed date
4. DAn expert predicts, before performance is due, that a party will probably breach

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 AThe offer has been revoked, so B can no longer accept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

A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:

1. ANot a misrepresentation, because the statement was true when it was made
2. BA mere opinion about future income
3. CA breach of an implied condition of quality
4. DA misrepresentation, because he should have corrected the statement

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. AFrustrated, because the costs rose unexpectedly and substantially
2. BNot frustrated, because it has only become more onerous
3. CVoid, because the price was wrongly estimated
4. DAutomatically varied to a reasonable price

An innocent party who terminates a contract for repudiatory breach must generally:

1. AWait for a court order before stopping performance
2. BClearly communicate the decision to accept the repudiation
3. CContinue performing until the contract ends naturally on its agreed date
4. DPay a penalty to the party in breach

In the Dutch Civil Code (BW), an offer that states a time limit for acceptance is:

1. ARevocable at any moment before acceptance
2. BAutomatically accepted at the end of the period
3. CInvalid without notarial approval
4. DIrrevocable during that period