Contract law worksheet with answers

Minors (under 18) entering contracts are generally:

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

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

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

A counter-offer has which effect on the original offer?

1. AIt accepts the original offer
2. BIt rejects and ends the original offer
3. CIt has no effect at all
4. DIt makes the original offer irrevocable

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. BPunitive damages to deter the actor
3. CIts estimated profits from the film, even if they are purely speculative
4. DIts wasted expenditure, including costs incurred before the contract

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

An actress agrees to act only for one studio and not for any other during the contract. She leaves to act for a rival. The court is most likely to:

1. AOrder her to perform her contract with the studio
2. BGrant an injunction stopping her acting for the rival
3. CRefuse any remedy, as personal services are involved
4. DOrder her to pay the rival's profits to the court

Mutual mistake as to the existence of the subject matter (for example the goods no longer exist when contracting) usually makes the contract:

1. AVoid
2. BFully valid, with the buyer bearing the risk
3. CValid, with compensation set by the court
4. DVoidable at either party's option

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

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