Contract law worksheet with answers

According to Derry v Peek, a misrepresentation is fraudulent if the maker:

1. AKnew it was false, did not believe it, or was reckless whether it was true
2. BMade it carelessly and without checking the facts, though honestly believing it
3. CMade it in a written document
4. DMade a profit from the contract that followed

Minors (under 18) entering contracts are generally:

1. ABound in exactly the same way as adults, unless their parents object in writing
2. BNever able to make any contract
3. CLiable only if their parents sign too
4. DProtected, so many of their contracts are not enforceable against them

Who can usually enforce a contract?

1. AOnly the state
2. BThe parties to the contract
3. CAnyone who hears about it or is affected by it
4. DOnly lawyers

A promises to keep an offer open until Friday. On Thursday, B hears from a reliable third party that A has sold the property to someone else. Under Dickinson v Dodds:

1. AThe offer stays open until Friday, as A promised
2. BB can sue A for breaking the promise to keep it open
3. CThe offer has been revoked, so B can no longer accept
4. DB can accept and claim the property from the new buyer

An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:

1. AWhen the offeror reads it a week later
2. BWhen it is confirmed by post
3. CWhen it is sent by the offeree
4. DWhen it is received by the offeror

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

A wife guarantees her husband's business debts to a bank. Under RBS v Etridge (No 2), the bank should normally:

1. ASeek a court's approval of the guarantee
2. BRefuse the guarantee unless she has her own income
3. CHave the husband explain the risks to her
4. DObtain confirmation that a solicitor has advised her

In the Dutch Civil Code (BW), an offer that states a time limit for acceptance is:

1. AIrrevocable during that period
2. BInvalid without notarial approval
3. CRevocable at any moment before acceptance
4. DAutomatically accepted at the end of the period