Contract law worksheet with answers

A "voidable" contract is one that:

1. AIs a criminal agreement and illegal
2. BCan only be ended by both parties agreeing together to cancel it
3. CIs valid until the affected party chooses to set it aside
4. DNever had any legal effect at all

Which elements are generally needed to form a contract?

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

The duty to mitigate loss means that a claimant:

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

A creditor agrees to take £600 in full settlement of a £1,000 debt that is due, then sues for the other £400. Under Pinnel's Case and Foakes v Beer, the creditor:

1. AMust give back the £600 first
2. BCannot recover anything more
3. CCan usually recover the £400
4. DCan recover only if the agreement was oral

A boiler is delivered late to a laundry. The seller knew it was needed for the business but not about especially lucrative dyeing contracts. Under Victoria Laundry v Newman, the laundry recovers:

1. AOnly the price it paid for the boiler
2. BAll lost profits, including those from the especially lucrative dyeing contracts
3. COrdinary lost profits, but not the profits from the special contracts
4. DNothing, because all lost profits are too remote

A seller of land never used for sheep says it could carry 2,000 sheep. Both know he has no experience of sheep farming on it. The statement is most likely:

1. AAn honest opinion, not a misrepresentation
2. BA condition of the contract
3. CA fraudulent misrepresentation
4. DA statement of future intention

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

A seller quotes on its terms with a price variation clause. The buyer orders on its own terms without that clause, with a tear-off acknowledgement slip, which the seller signs and returns. In Butler Machine Tool v Ex-Cell-O, the contract was on:

1. ANo terms, because there was no contract
2. BThe buyer's terms, because the seller accepted its counter-offer
3. CThe seller's terms, because it sent its terms and price variation clause first
4. DA mixture of terms chosen by the court as fair