Contract law worksheet with answers

For commercial agreements, English courts presume that the parties:

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

A shop displays a jacket with a price tag in its window. In English law this is usually:

1. AA unilateral contract
2. BAn acceptance
3. CAn invitation to treat
4. DA binding offer to sell at that price

Anticipatory breach occurs when:

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

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

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

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

A van is bought "on hire-purchase terms" with no further detail, and such terms varied widely in practice. In Scammell v Ouston, the House of Lords held:

1. AThe seller's usual terms applied
2. BThere was no contract, because the terms were too vague
3. CThere was a contract at a reasonable price
4. DThere was a contract on the standard hire-purchase terms of the market

A client repudiates an advertising contract the same day it is made. The agency ignores this, displays the adverts for the full period and sues for the price. In White and Carter v McGregor:

1. AThe agency had to obtain a court order first
2. BThe agency could recover nothing
3. CThe agency could only claim damages after mitigating
4. DThe agency could recover the full price