Contract law worksheet with answers

A shop displays a jacket with a price tag in its window. In English law this is usually:

1. AA unilateral contract
2. BAn invitation to treat
3. CA binding offer to sell at that price
4. DAn acceptance

The rule that consideration "must be sufficient but need not be adequate" means:

1. AIt must be equal to the market value of the promise it is given in exchange for
2. BIt must be paid before the contract is made
3. CIt must always be paid in money
4. DIt must have some value in law, but need not match the value of the promise

Under the UK Consumer Rights Act 2015, goods supplied by a trader to a consumer must be:

1. ASold below the recommended retail price
2. BOf satisfactory quality, fit for purpose and as described
3. CCovered by a five-year manufacturer guarantee against all defects
4. DBrand new and in their original packaging

A contract made under duress may be:

1. AAvoided (set aside) by the pressured party
2. BAutomatically valid with no remedy
3. CTurned into a criminal offence only
4. DEnforced against the pressured party in every case

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

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

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 letter was posted
2. BThe contract is void for common mistake
3. CA contract was formed when the offeree decided to accept
4. DThere is no contract, because actual notice was required

A council invites tenders by a deadline. A club submits on time, but the council wrongly treats it as late and ignores it. In Blackpool and Fylde Aero Club v Blackpool BC, the Court of Appeal held:

1. AThe council breached an implied contract to consider conforming tenders
2. BThe club could only claim in tort for negligence
3. CThere was no obligation of any kind, as an invitation to tender is only an invitation to treat
4. DThe council was obliged to accept the club's tender

Liquidated damages clauses are enforceable in English law when:

1. AOnly the party in breach benefits from them
2. BThey protect a legitimate interest and are not out of all proportion to it
3. CThey are agreed orally only
4. DThey are set as high as possible, so that they deter either party from breaching