Contract law worksheet with answers

For commercial agreements, English courts presume that the parties:

1. AIntend to create legal relations
2. BDo not intend to create legal relations
3. CIntend the agreement to be a gift
4. DIntend only a moral obligation

Which equitable remedy corrects a written contract so it records what the parties actually agreed?

1. AQuantum meruit
2. BRectification
3. CRescission
4. DSpecific performance

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

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

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. CAn opinion that turns out to be wrong
4. DSilence about any fact at all

A former wife sues for maintenance her ex-husband promised, relying only on promissory estoppel because she gave no consideration. In Combe v Combe:

1. AShe succeeded, because she relied on the promise
2. BShe succeeded, because the promise was made in writing
3. CShe failed, because promissory estoppel is a shield, not a sword
4. DShe failed, because family agreements are never legally binding on either party

In English law, the "postal rule" means an acceptance sent by post takes effect:

1. AWhen the letter arrives
2. BWhen the offeror replies
3. CWhen the letter is posted
4. DWhen the letter is read

A posts an offer. A week later A posts a revocation. B receives the offer and immediately accepts by telegram, and only later receives the revocation. Applying Byrne v Van Tienhoven:

1. AThere was no contract, because the revocation was posted before B's acceptance was sent
2. BA contract was made only when B received the revocation
3. CA contract was made when B accepted, because the revocation had not yet arrived
4. DThere was no contract, because offers by post can be revoked at any time

A carrier, knowing a small company depends on its deliveries to supply a major customer, refuses to continue unless paid a higher minimum price. The company agrees as it has no alternative. In Atlas Express v Kafco:

1. AThe carrier committed a crime of extortion
2. BThe new agreement was binding as a free variation
3. CThe new agreement was not binding, due to economic duress
4. DThe new agreement was binding, as the carrier's continued performance was a practical benefit