Contract law worksheet with answers

Rescission of a contract means:

1. ASetting the contract aside so the parties return to their original positions
2. BOrdering a party to perform as promised
3. CCorrecting the wording of a written contract
4. DEnding the contract for the future only and claiming damages for lost profits

In English law, a newspaper advertisement offering goods for sale at a stated price is usually:

1. AA collateral contract with each reader
2. BAn invitation to treat
3. CAn acceptance of future orders
4. DA unilateral offer to all readers

In England and Wales, a claim for breach of a simple (non-deed) contract must usually be brought within:

1. ATwelve years of the breach
2. BSix years of the breach
3. CThree months of the breach
4. DOne year of the breach

Which of these will usually bar rescission for misrepresentation?

1. AThe contract was made in writing
2. BThe misrepresentation was innocent rather than fraudulent or negligent
3. CThe misrepresentation was made by a company
4. DThe innocent party affirms the contract after learning the truth

An actor withdraws from a TV film and the company cannot prove what profit the film would have made. It may claim:

1. AOnly nominal damages of a small sum
2. BIts estimated profits from the film, even if they are purely speculative
3. CPunitive damages to deter the actor
4. DIts wasted expenditure, including costs incurred before the contract

Promissory estoppel can prevent a party from:

1. AMaking any new promises
2. BGoing back on a promise not to enforce strict legal rights, when the other relied on it
3. CEntering into future contracts
4. DSuing for any breach at all, including breaches entirely unrelated to the promise that it made

A council invites tenders by a deadline. A club submits on time, but the council wrongly treats it as late and ignores it. In Blackpool and Fylde Aero Club v Blackpool BC, the Court of Appeal held:

1. AThe council was obliged to accept the club's tender
2. BThere was no obligation of any kind, as an invitation to tender is only an invitation to treat
3. CThe council breached an implied contract to consider conforming tenders
4. DThe club could only claim in tort for negligence

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