Contract law worksheet with answers

A term that the parties did not state, but which a court reads into the contract, is:

1. AA condition precedent
2. BAn implied term
3. CAn express term
4. DA collateral warranty

Which statement about silence as acceptance is correct in general?

1. ASilence always counts as acceptance
2. BSilence usually does not count as acceptance
3. CSilence counts as acceptance if the offeror says so
4. DSilence counts as acceptance after 24 hours

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

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

A hotel guest sees an exclusion notice in her room only after booking and paying at reception. Under Olley v Marlborough Court Hotel, the notice is:

1. APart of the contract, because she stayed in the room
2. BPart of the contract, because hotels may exclude liability
3. CBinding from the second night onwards
4. DNot part of the contract, because it came after formation

An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:

1. AWhen it is sent by the offeree
2. BWhen it is confirmed by post
3. CWhen the offeror reads it a week later
4. DWhen it is received by the offeror

What is an exclusion clause?

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

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. BThey are agreed orally only
3. COnly the party in breach benefits from them
4. DThey are set as high as possible, so that they deter either party from breaching

Asked to "telegraph lowest cash price" for a property, the owner replies "Lowest price £900". The enquirer then telegraphs that he accepts. In Harvey v Facey:

1. AThere was a contract at a reasonable price
2. BThe reply was a counter-offer, which the enquirer's telegram then accepted
3. CThere was a contract at £900
4. DThere was no contract, because stating a lowest price was not an offer