Contract law worksheet with answers

When can an offer generally be withdrawn?

1. ABefore it has been accepted
2. BOnly by a court
3. CNever, once it has been made
4. DOnly after it has been accepted

A "voidable" contract is one that:

1. ANever had any legal effect at all
2. BIs a criminal agreement and illegal
3. CIs valid until the affected party chooses to set it aside
4. DCan only be ended by both parties agreeing together to cancel it

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

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

Under section 2(1) of the Misrepresentation Act 1967, a person who made a false statement inducing a contract is liable in damages unless:

1. AThe claimant proves that the statement was made fraudulently and not merely carelessly
2. BThe contract was made between two businesses
3. CThe statement was made orally and not in writing
4. DThey prove they had reasonable grounds to believe, and did believe, it was true

Promissory estoppel can prevent a party from:

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

A builder makes a swimming pool shallower than agreed. It is still safe and no less valuable, and rebuilding would cost far more than any benefit. In Ruxley Electronics v Forsyth the owner received:

1. AThe full cost of rebuilding the pool
2. BA modest sum for loss of amenity
3. CA full refund of the contract price
4. DNothing, as there was no loss in value

Under the EU Unfair Terms Directive, a non-negotiated consumer contract term is unfair if:

1. AIt benefits the trader in any way, even where the consumer's rights are not significantly affected
2. BContrary to good faith, it causes a significant imbalance to the consumer's detriment
3. CThe consumer did not read it
4. DIt was written in small font

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

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