Contract law worksheet with answers

In English law, a newspaper advertisement offering goods for sale at a stated price is usually:

1. AAn invitation to treat
2. BA collateral contract with each reader
3. CAn acceptance of future orders
4. DA unilateral offer to all readers

For commercial agreements, English courts presume that the parties:

1. AIntend the agreement to be a gift
2. BIntend only a moral obligation
3. CDo not intend to create legal relations
4. DIntend to create legal relations

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

1. AAn implied term
2. BAn express term
3. CA collateral warranty
4. DA condition precedent

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

Which of these will usually bar rescission for misrepresentation?

1. AThe contract was made in writing
2. BThe innocent party affirms the contract after learning the truth
3. CThe misrepresentation was innocent rather than fraudulent or negligent
4. DThe misrepresentation was made by a company

In Hadley v Baxendale, damages are recoverable for losses that:

1. AWere caused by a third party
2. BWere caused in any factual sense by the breach, however unusual and unforeseeable they were
3. CThe claimant suffered only after the trial
4. DArise naturally from the breach or were in the reasonable contemplation of both parties

A husband who has left his wife signs a note promising to transfer the house to her if she pays off the mortgage. She does. In Merritt v Merritt, the promise was:

1. AEnforceable, because separated spouses are presumed to intend legal relations
2. BUnenforceable, because it was a domestic arrangement between husband and wife
3. CEnforceable only because it was made by deed
4. DUnenforceable, because she gave no consideration

A former spy publishes his memoirs in breach of his undertaking not to disclose official information. In AG v Blake, the House of Lords:

1. AAwarded only nominal damages
2. BOrdered him to account for his profits, in an exceptional case
3. CHeld that no remedy was available
4. DAwarded punitive damages to the Crown