Contract law worksheet with answers

An offeree asks whether the offeror would accept delivery in two parts, without rejecting the original terms. This is:

1. AA counter-offer
2. BA request for information
3. CAn acceptance
4. DA revocation

The duty to mitigate loss means that a claimant:

1. AMust prove the breach was deliberate
2. BCannot recover for losses they could reasonably have avoided
3. CMust accept any offer made by the party in breach
4. DMust sue within one month of the breach

For commercial agreements, English courts presume that the parties:

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

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. AThere is no contract, because actual notice was required
2. BA contract was formed when the offeree decided to accept
3. CThe contract is void for common mistake
4. DA contract was formed when the letter was posted

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

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

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

In Carlill v Carbolic Smoke Ball Co, the court held that the advertisement was:

1. AAn invitation to treat
2. BA contract only with the newspaper
3. CA unilateral offer that could be accepted by performing the conditions
4. DA mere advertising puff with no legal effect, since no one could take it seriously

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