Contract law worksheet with answers

A counter-offer has which effect on the original offer?

1. AIt rejects and ends the original offer
2. BIt has no effect at all
3. CIt makes the original offer irrevocable
4. DIt accepts the original offer

Which elements are generally needed to form a contract?

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

A term that the parties did not state, but which a court reads into the contract, is:

1. AA collateral warranty
2. BAn implied term
3. CA condition precedent
4. DAn express term

Promissory estoppel can prevent a party from:

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

A fishing company receives fewer licences than it needs and chooses to assign them to its other ships, not the chartered one. In Maritime National Fish v Ocean Trawlers the charter was:

1. ASuspended until more licences were issued
2. BFrustrated by the government licensing decision
3. CVoid, because licences were a condition precedent
4. DNot frustrated, because the problem was self-induced

Police provide extra officers at a mine during a strike, beyond what their public duty requires, at the owner's request. The owner's promise to pay is:

1. AUnenforceable, because police protection can never be consideration for a promise
2. BEnforceable, because doing more than a public duty is consideration
3. CEnforceable only if approved by Parliament
4. DVoid, because it is contrary to public policy

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

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

A council writes that it "may be prepared to sell" a house to a tenant and invites a formal application. The tenant applies, then the council changes its policy. In Gibson v Manchester City Council, the House of Lords held:

1. AThe council was bound by estoppel to sell
2. BA contract was formed when the tenant applied
3. CThere was no contract, because the letter was not an offer
4. DA contract was formed when the council's letter was sent to the tenant