Contract law worksheet with answers

Which elements are generally needed to form a contract?

1. AA witness for each party
2. BAn offer and an acceptance, with the intention to be legally bound
3. CA payment made in advance
4. DA written document signed by both parties and certified by a notary

Which statement about silence as acceptance is correct in general?

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

What is a breach of contract?

1. AWithdrawing an offer before it is accepted, after promising to keep it open
2. BRefusing to sign a contract
3. CFailing to perform a contractual obligation without a lawful excuse
4. DNegotiating a better price

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 full wages were payable
4. DThe ship owner had to pay compensation

Under the Law Reform (Frustrated Contracts) Act 1943, money paid before a frustrating event is generally:

1. ALost, because the loss must lie where it falls once the contract is frustrated
2. BRecoverable, though the court may let the payee keep some for expenses
3. CPaid into court for distribution
4. DPayable twice, as a penalty

A hotel guest sees an exclusion notice in her room only after booking and paying at reception. Under Olley v Marlborough Court Hotel, the notice is:

1. ABinding from the second night onwards
2. BPart of the contract, because hotels may exclude liability
3. CNot part of the contract, because it came after formation
4. DPart of the contract, because she stayed in the room

A buyer specifically asks a surveyor to check aircraft noise at a property. The surveyor negligently reports no problem. In Farley v Skinner:

1. AOnly the difference in market value was recoverable
2. BDamages for discomfort were recoverable, as peace of mind was an important object of the obligation
3. CThe buyer had to sell the house before claiming
4. DNo damages were recoverable, because damages for distress or discomfort are always excluded in contract

A council invites tenders by a deadline. A club submits on time, but the council wrongly treats it as late and ignores it. In Blackpool and Fylde Aero Club v Blackpool BC, the Court of Appeal held:

1. AThere was no obligation of any kind, as an invitation to tender is only an invitation to treat
2. BThe council was obliged to accept the club's tender
3. CThe club could only claim in tort for negligence
4. DThe council breached an implied contract to consider conforming tenders