Contract law worksheet with answers

What is a breach of contract?

1. AWithdrawing an offer before it is accepted, after promising to keep it open
2. BRefusing to sign a contract
3. CFailing to perform a contractual obligation without a lawful excuse
4. DNegotiating a better price

A unilateral contract is one in which:

1. AOne party promises something in return for the other performing an act
2. BThe terms are imposed by statute on one party
3. COnly one party is allowed to terminate it
4. DOnly one party signs the written document, so only that party is bound by it

Which equitable remedy corrects a written contract so it records what the parties actually agreed?

1. ASpecific performance
2. BRectification
3. CRescission
4. DQuantum meruit

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

An unusual and onerous term in standard conditions will only be incorporated if:

1. AIt was fairly and reasonably brought to the other party's attention
2. BIt is printed anywhere in the contract documents, however small the type
3. CThe other party could have found it online
4. DIt appears on the back of a receipt

A holiday company provides a holiday far below the promised standard. Can the customer recover damages for disappointment?

1. ANo, because mental distress is never recoverable in contract
2. BYes, because the contract's purpose was to provide enjoyment
3. COnly if the customer suffered a physical injury
4. DOnly if the company acted dishonestly

A distribution agreement says it is not a formal or legal agreement and is "binding in honour only". In Rose and Frank v Crompton, the court held:

1. AThe agreement was binding despite those words
2. BThe agreement was a deed and binding
3. CThe agreement was void as illegal
4. DThe agreement itself was not legally binding

A wife guarantees her husband's business debts to a bank. Under RBS v Etridge (No 2), the bank should normally:

1. ARefuse the guarantee unless she has her own income
2. BObtain confirmation that a solicitor has advised her
3. CSeek a court's approval of the guarantee
4. DHave the husband explain the risks to her