Contract law worksheet with answers

In English law, agreements between spouses living together in harmony are presumed to be:

1. ABinding only for one year
2. BNot intended to be legally binding
3. CBinding only if witnessed
4. DAlways legally binding

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

1. ARepresentation
2. BCondition
3. CInvitation to treat
4. DWarranty

A "voidable" contract is one that:

1. ACan only be ended by both parties agreeing together to cancel it
2. BIs a criminal agreement and illegal
3. CIs valid until the affected party chooses to set it aside
4. DNever had any legal effect at all

Promissory estoppel can prevent a party from:

1. AGoing back on a promise not to enforce strict legal rights, when the other relied on it
2. BEntering into future contracts
3. CMaking any new promises
4. DSuing for any breach at all, including breaches entirely unrelated to the promise that it made

Frustration of contract occurs when:

1. APerformance becomes more expensive or more difficult than either party expected
2. BThe contract was badly drafted
3. COne party regrets the bargain
4. DAn unforeseen event makes performance impossible or radically different

A contract made under duress may be:

1. AAvoided (set aside) by the pressured party
2. BTurned into a criminal offence only
3. CAutomatically valid with no remedy
4. DEnforced against the pressured party in every case

A contract states it can be varied only in signed writing. The parties later agree an oral variation. In MWB Business Exchange v Rock Advertising, the Supreme Court held:

1. AThe oral variation was ineffective, because the clause was binding
2. BThe variation was effective as it had consideration
3. CThe clause was void as against public policy
4. DThe oral variation was effective, because parties can always vary orally

A builder agrees to finish work for an agreed price, then demands more money. The client pays to avoid delay and gets a practical benefit. In English law (Williams v Roffey), the promise to pay more may be:

1. AA criminal offence
2. BEnforceable, because the practical benefit can be consideration if there is no duress
3. CEnforceable only if made in writing
4. DUnenforceable, because performing an existing contractual duty can never be good consideration