Contract law worksheet with answers

In contract law, the "offeree" is:

1. AThe person who makes the offer
2. BThe lawyer who drafts the offer
3. CA third party who benefits from the contract
4. DThe person to whom an offer is made

In English law, revocation of an offer takes effect:

1. AAs soon as the offeror privately decides
2. BOnly after a reasonable notice period
3. CWhen it is actually communicated to the offeree
4. DWhen the letter of revocation is posted

The rule that "consideration must move from the promisee" means:

1. AA person can enforce a promise only if they gave consideration for it
2. BThe promisor must provide all the consideration for the promise it makes
3. CThe promisee must always pay in cash
4. DThe consideration must be handed to a court

Under section 2(1) of the Misrepresentation Act 1967, a person who made a false statement inducing a contract is liable in damages unless:

1. AThe claimant proves that the statement was made fraudulently and not merely carelessly
2. BThe contract was made between two businesses
3. CThey prove they had reasonable grounds to believe, and did believe, it was true
4. DThe statement was made orally and not in writing

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

An actor withdraws from a TV film and the company cannot prove what profit the film would have made. It may claim:

1. AOnly nominal damages of a small sum
2. BIts estimated profits from the film, even if they are purely speculative
3. CPunitive damages to deter the actor
4. DIts wasted expenditure, including costs incurred before the contract

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. CNo damages were recoverable, because damages for distress or discomfort are always excluded in contract
4. DThe buyer had to sell the house before claiming

A contract states it can be varied only in signed writing. The parties later agree an oral variation. In MWB Business Exchange v Rock Advertising, the Supreme Court held:

1. AThe oral variation was effective, because parties can always vary orally
2. BThe variation was effective as it had consideration
3. CThe oral variation was ineffective, because the clause was binding
4. DThe clause was void as against public policy