Contract law worksheet with answers

Anticipatory breach occurs when:

1. AAn expert predicts, before performance is due, that a party will probably breach
2. BA party breaches a term that has not yet been agreed
3. CA party shows, before performance is due, that it will not perform
4. DA party performs earlier than the agreed date

A unilateral contract is one in which:

1. AOnly one party is allowed to terminate it
2. BOnly one party signs the written document, so only that party is bound by it
3. COne party promises something in return for the other performing an act
4. DThe terms are imposed by statute on one party

The rule that consideration "must be sufficient but need not be adequate" means:

1. AIt must be paid before the contract is made
2. BIt must be equal to the market value of the promise it is given in exchange for
3. CIt must have some value in law, but need not match the value of the promise
4. DIt must always be paid in money

Sailors are promised extra wages for sailing a ship home after two crew members desert, but they do no more than their contract already required. In Stilk v Myrick the promise was:

1. AEnforceable because the captain agreed freely
2. BUnenforceable for lack of consideration
3. CUnenforceable because it was made at sea
4. DEnforceable as a practical benefit

Frustration of contract occurs when:

1. APerformance becomes more expensive or more difficult than either party expected
2. BThe contract was badly drafted
3. CAn unforeseen event makes performance impossible or radically different
4. DOne party regrets the bargain

Police provide extra officers at a mine during a strike, beyond what their public duty requires, at the owner's request. The owner's promise to pay is:

1. AUnenforceable, because police protection can never be consideration for a promise
2. BEnforceable, because doing more than a public duty is consideration
3. CVoid, because it is contrary to public policy
4. DEnforceable only if approved by Parliament

An employer pays large severance sums to two directors, later discovering it could have dismissed them for nothing because of their earlier misconduct. In Bell v Lever Bros, the agreements were:

1. AUnenforceable because severance needs a deed
2. BValid, because the mistake about quality was not fundamental enough
3. CVoidable for the directors' misrepresentation by failing to disclose their misconduct
4. DVoid for common mistake about the contracts

Liquidated damages clauses are enforceable in English law when:

1. AThey protect a legitimate interest and are not out of all proportion to it
2. BOnly the party in breach benefits from them
3. CThey are agreed orally only
4. DThey are set as high as possible, so that they deter either party from breaching