Contract law worksheet with answers

Which elements are generally needed to form a contract?

1. AA written document signed by both parties and certified by a notary
2. BA witness for each party
3. CAn offer and an acceptance, with the intention to be legally bound
4. DA payment made in advance

In English law, a promise made in a deed is enforceable even without:

1. AConsideration
2. BDelivery of the deed
3. CA signature
4. DWriting

Under English law, a minor who is supplied with necessaries must pay:

1. AOnly if a parent signed the contract
2. BDouble the contract price
3. CNothing, because minors are never bound
4. DA reasonable price for them

A court will imply a term in fact into a commercial contract only if:

1. AIt would benefit the weaker party
2. BIt is necessary for business efficacy or so obvious it goes without saying
3. CIt would be reasonable and fair to both parties, even if it is not necessary
4. DIt is usual in contracts in other industries

A misrepresentation is:

1. ASilence about any fact at all
2. BAn opinion that turns out to be wrong
3. CA promise about future behaviour that is not kept, even if honestly made
4. DA false statement of fact that induces someone to enter a contract

A supplier receives a draft agreement, never signs or returns it, but both sides trade on its terms for years. A court is likely to find:

1. AA void agreement for lack of certainty
2. BA contract only for the first delivery
3. CNo contract, because nothing was signed
4. DA contract accepted by conduct

Mutual mistake as to the existence of the subject matter (for example the goods no longer exist when contracting) usually makes the contract:

1. AVoid
2. BValid, with compensation set by the court
3. CVoidable at either party's option
4. DFully valid, with the buyer bearing the risk

A chartered ship is returned late, and the owner loses a very profitable follow-on charter. In The Achilleas, the House of Lords held the charterer was liable:

1. AFor punitive damages, because the delay was deliberate
2. BFor the whole profit lost on the follow-on charter, as it was foreseeable
3. CFor no loss, because late return is not a breach
4. DOnly for the market rate difference during the overrun period