Contract law worksheet with answers

An offer with no stated time limit lapses:

1. AAfter a reasonable time
2. BAfter exactly seven days
3. CNever, unless revoked
4. DAt midnight on the day it is made

Who can usually enforce a contract?

1. AOnly lawyers
2. BOnly the state
3. CAnyone who hears about it or is affected by it
4. DThe parties to the contract

The duty to mitigate loss means that a claimant:

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

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

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

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 AThe offer has been revoked, so B can no longer accept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

An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:

1. AWhen it is sent by the offeree
2. BWhen the offeror reads it a week later
3. CWhen it is received by the offeror
4. DWhen it is confirmed by post

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

A distribution agreement says it is not a formal or legal agreement and is "binding in honour only". In Rose and Frank v Crompton, the court held:

1. AThe agreement was void as illegal
2. BThe agreement itself was not legally binding
3. CThe agreement was binding despite those words
4. DThe agreement was a deed and binding