Contract law worksheet with answers

For commercial agreements, English courts presume that the parties:

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

What is the most common remedy for breach of contract?

1. AImprisonment
2. BA fine paid to the state
3. CDamages
4. DAutomatic transfer of all the defendant's assets

The rule that "consideration must move from the promisee" means:

1. AThe promisor must provide all the consideration for the promise it makes
2. BThe consideration must be handed to a court
3. CA person can enforce a promise only if they gave consideration for it
4. DThe promisee must always pay in cash

A sailor is to be paid only on completing a voyage, but dies part of the way. Under the strict rule applied in Cutter v Powell:

1. AThe full wages were payable
2. BNothing was recoverable for the part performed
3. CA proportion of the wages was payable
4. DThe ship owner had to pay compensation

An offer says acceptance must be made "by notice in writing to us". The offeree posts an acceptance, which is lost. Under Holwell Securities v Hughes:

1. AA contract was formed when the offeree decided to accept
2. BA contract was formed when the letter was posted
3. CThere is no contract, because actual notice was required
4. DThe contract is void for common mistake

What is consideration in common law contracts?

1. AThe intention to create legal relations shown by both parties
2. BCareful thought before signing
3. CSomething of value given in exchange for a promise
4. DThe written form of a contract

A buyer specifically asks a surveyor to check aircraft noise at a property. The surveyor negligently reports no problem. In Farley v Skinner:

1. ANo damages were recoverable, because damages for distress or discomfort are always excluded in contract
2. BThe buyer had to sell the house before claiming
3. CDamages for discomfort were recoverable, as peace of mind was an important object of the obligation
4. DOnly the difference in market value was recoverable

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 not binding, due to economic duress
3. CThe new agreement was binding, as the carrier's continued performance was a practical benefit
4. DThe new agreement was binding as a free variation