Contract law worksheet with answers

What is a breach of contract?

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

Which elements are generally needed to form a contract?

1. AA written document signed by both parties and certified by a notary
2. BA payment made in advance
3. CAn offer and an acceptance, with the intention to be legally bound
4. DA witness for each party

Rescission of a contract means:

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

An actress agrees to act only for one studio and not for any other during the contract. She leaves to act for a rival. The court is most likely to:

1. AGrant an injunction stopping her acting for the rival
2. BRefuse any remedy, as personal services are involved
3. COrder her to perform her contract with the studio
4. DOrder her to pay the rival's profits to the court

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

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

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. BThe full wages were payable
3. CThe ship owner had to pay compensation
4. DA proportion of the wages was payable

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

Under the Vienna Sales Convention (CISG), a reply to an offer that adds non-material terms:

1. AIs an acceptance, unless the offeror objects without undue delay
2. BIs always a rejection
3. CHas no legal effect
4. DCreates a contract only after a court confirms that the added terms are non-material