Contract law worksheet with answers

An offer with no stated time limit lapses:

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

Which statement about silence as acceptance is correct in general?

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

A "voidable" contract is one that:

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

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

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

A decorator finishes the work but with minor defects that are cheap to fix. Under Hoenig v Isaacs, the decorator is entitled to:

1. ANothing, because performance was not exact
2. BThe full price with no deduction
3. CThe price less the cost of putting the defects right
4. DOnly payment for the materials used

In English law, a presumption of undue influence typically arises when:

1. AThere is a relationship of trust and confidence and a transaction that calls for explanation
2. BAny customer signs a contract with a bank
3. CAny contract is made between members of a family
4. DThe price agreed is substantially lower than the market price, whatever the relationship of the parties

Which statement about the parol evidence rule is correct?

1. ACourts must accept any later oral statement as overriding the express written terms of the contract
2. BWritten contracts can never be interpreted
3. COral contracts are always invalid
4. DEvidence outside a written contract is generally not admitted to add to or vary its terms