Contract law worksheet with answers

Anticipatory breach occurs when:

1. AAn expert predicts, before performance is due, that a party will probably breach
2. BA party shows, before performance is due, that it will not perform
3. CA party performs earlier than the agreed date
4. DA party breaches a term that has not yet been agreed

A term that is fundamental to the contract, whose breach allows termination, is called in English law a:

1. AWarranty
2. BInvitation to treat
3. CRepresentation
4. DCondition

The duty to mitigate loss means that a claimant:

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

What is consideration in common law contracts?

1. ACareful thought before signing
2. BThe written form of a contract
3. CThe intention to create legal relations shown by both parties
4. DSomething of value given in exchange for a promise

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. CIt appears on the back of a receipt
4. DThe other party could have found it online

A sailor is to be paid only on completing a voyage, but dies part of the way. Under the strict rule applied in Cutter v Powell:

1. ANothing was recoverable for the part performed
2. BA proportion of the wages was payable
3. CThe ship owner had to pay compensation
4. DThe full wages were payable

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

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

A buyer specifically asks a surveyor to check aircraft noise at a property. The surveyor negligently reports no problem. In Farley v Skinner:

1. AOnly the difference in market value was recoverable
2. BThe buyer had to sell the house before claiming
3. CNo damages were recoverable, because damages for distress or discomfort are always excluded in contract
4. DDamages for discomfort were recoverable, as peace of mind was an important object of the obligation