Contract law worksheet with answers

A unilateral contract is one in which:

1. AOnly one party is allowed to terminate it
2. BOne party promises something in return for the other performing an act
3. COnly one party signs the written document, so only that party is bound by it
4. DThe terms are imposed by statute on one party

Which elements are generally needed to form a contract?

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

In England and Wales, a contract for the sale of land must be:

1. AIn writing, containing all agreed terms, and signed by both parties
2. BApproved by a court and registered with HM Land Registry before it is made
3. CMade only through an estate agent
4. DMade orally in front of two witnesses

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

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

In English law, the "postal rule" means an acceptance sent by post takes effect:

1. AWhen the letter is read
2. BWhen the offeror replies
3. CWhen the letter is posted
4. DWhen the letter arrives

Damages for breach of contract are generally meant to:

1. APunish the party in breach
2. BPut the innocent party in the position as if the contract had been performed
3. CReturn both parties only to the position they were in before the contract was made
4. DGive the innocent party a profit beyond their loss

A carrier, knowing a small company depends on its deliveries to supply a major customer, refuses to continue unless paid a higher minimum price. The company agrees as it has no alternative. In Atlas Express v Kafco:

1. AThe new agreement was binding, as the carrier's continued performance was a practical benefit
2. BThe new agreement was not binding, due to economic duress
3. CThe carrier committed a crime of extortion
4. DThe new agreement was binding as a free variation

A rogue uses a stolen driving licence to take a car on written hire-purchase in another person's name. In Shogun Finance v Hudson, the majority of the House of Lords held:

1. AThe contract was valid with the rogue himself
2. BThe contract was void, because the finance company dealt only with the named person
3. CThe contract was void, because hire-purchase agreements must always be made face to face
4. DThe contract was voidable, so a later buyer got good title