Contract law worksheet with answers

Under the contra proferentem rule, an ambiguous term is interpreted:

1. AAgainst the party who relies on it
2. BIn favour of the stronger party
3. CIn favour of the party who drafted it
4. DAs if it were not part of the contract

A claim on a "quantum meruit" is a claim for:

1. AThe return of land transferred under the contract
2. BAn order stopping the other party from acting
3. CA reasonable sum for work done or services provided
4. DPunitive damages for deliberate breach

For commercial agreements, English courts presume that the parties:

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

Under section 2(1) of the Misrepresentation Act 1967, a person who made a false statement inducing a contract is liable in damages unless:

1. AThey prove they had reasonable grounds to believe, and did believe, it was true
2. BThe contract was made between two businesses
3. CThe statement was made orally and not in writing
4. DThe claimant proves that the statement was made fraudulently and not merely carelessly

A decorator finishes the work but with minor defects that are cheap to fix. Under Hoenig v Isaacs, the decorator is entitled to:

1. AThe full price with no deduction
2. BNothing, because performance was not exact
3. CThe price less the cost of putting the defects right
4. DOnly payment for the materials used

A seller of land never used for sheep says it could carry 2,000 sheep. Both know he has no experience of sheep farming on it. The statement is most likely:

1. AA statement of future intention
2. BA fraudulent misrepresentation
3. CAn honest opinion, not a misrepresentation
4. DA condition of the contract

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. AValid, because the mistake about quality was not fundamental enough
2. BVoidable for the directors' misrepresentation by failing to disclose their misconduct
3. CVoid for common mistake about the contracts
4. DUnenforceable because severance needs a deed

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