Contract law worksheet with answers

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 witness for each party
4. DA payment made in advance

Which statement about silence as acceptance is correct in general?

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

A vague sales claim such as "the best coffee in the world" is usually treated as:

1. AA condition of the contract
2. BA mere puff with no legal effect
3. CA fraudulent misrepresentation
4. DAn implied warranty of quality

A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:

1. AA mere opinion about future income
2. BNot a misrepresentation, because the statement was true when it was made
3. CA misrepresentation, because he should have corrected the statement
4. DA breach of an implied condition of quality

Promissory estoppel can prevent a party from:

1. AGoing back on a promise not to enforce strict legal rights, when the other relied on it
2. BEntering into future contracts
3. CSuing for any breach at all, including breaches entirely unrelated to the promise that it made
4. DMaking any new promises

An offer says acceptance must be made "by notice in writing to us". The offeree posts an acceptance, which is lost. Under Holwell Securities v Hughes:

1. AA contract was formed when the offeree decided to accept
2. BThere is no contract, because actual notice was required
3. CThe contract is void for common mistake
4. DA contract was formed when the letter was posted

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

An actress is wrongly denied the chance to take part in the final stage of a competition in which some finalists would win prizes. In Chaplin v Hicks:

1. AShe could recover damages for the loss of a chance
2. BShe could recover only her travel expenses
3. CShe could recover the full value of a prize
4. DShe could recover nothing, because her loss was uncertain