Contract law worksheet with answers

Minors (under 18) entering contracts are generally:

1. ALiable only if their parents sign too
2. BBound in exactly the same way as adults, unless their parents object in writing
3. CNever able to make any contract
4. DProtected, so many of their contracts are not enforceable against them

Rescission of a contract means:

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

What is the most common remedy for breach of contract?

1. AImprisonment
2. BAutomatic transfer of all the defendant's assets
3. CDamages
4. DA fine paid to the state

A contract made under duress may be:

1. AAutomatically valid with no remedy
2. BEnforced against the pressured party in every case
3. CTurned into a criminal offence only
4. DAvoided (set aside) by the pressured party

Under section 2(1) of the Misrepresentation Act 1967, a person who made a false statement inducing a contract is liable in damages unless:

1. AThe claimant proves that the statement was made fraudulently and not merely carelessly
2. BThey prove they had reasonable grounds to believe, and did believe, it was true
3. CThe contract was made between two businesses
4. DThe statement was made orally and not in writing

A buyer is told false figures about a business and is offered documents that would reveal the truth, but does not read them. Under Redgrave v Hurd:

1. AThe buyer can still rely on the misrepresentation
2. BThe buyer can claim only half the loss
3. CThe misrepresentation becomes a term
4. DThe buyer loses all remedies by failing to check

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

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

A rogue uses a stolen driving licence to take a car on written hire-purchase in another person's name. In Shogun Finance v Hudson, the majority of the House of Lords held:

1. AThe contract was void, because hire-purchase agreements must always be made face to face
2. BThe contract was valid with the rogue himself
3. CThe contract was void, because the finance company dealt only with the named person
4. DThe contract was voidable, so a later buyer got good title