Contract law worksheet with answers

Under the contra proferentem rule, an ambiguous term is interpreted:

1. AIn favour of the party who drafted it
2. BAgainst the party who relies on it
3. CAs if it were not part of the contract
4. DIn favour of the stronger party

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 always be paid in money
3. CIt must be paid before the contract is made
4. DIt must have some value in law, but need not match the value of the promise

An offer with no stated time limit lapses:

1. AAt midnight on the day it is made
2. BNever, unless revoked
3. CAfter a reasonable time
4. DAfter exactly seven days

What is an exclusion clause?

1. AA term that limits or excludes one party's liability
2. BA term that excludes a party from paying VAT
3. CA clause allowing termination at any time
4. DA term that excludes third parties from the contract

A misrepresentation is:

1. AA promise about future behaviour that is not kept, even if honestly made
2. BA false statement of fact that induces someone to enter a contract
3. CSilence about any fact at all
4. DAn opinion that turns out to be wrong

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. AVoid, because licences were a condition precedent
2. BNot frustrated, because the problem was self-induced
3. CSuspended until more licences were issued
4. DFrustrated by the government licensing decision

Which statement about the parol evidence rule is correct?

1. AOral contracts are always invalid
2. BEvidence outside a written contract is generally not admitted to add to or vary its terms
3. CWritten contracts can never be interpreted
4. DCourts must accept any later oral statement as overriding the express written terms of the contract

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. AOrdered him to account for his profits, in an exceptional case
2. BAwarded only nominal damages
3. CAwarded punitive damages to the Crown
4. DHeld that no remedy was available