Contract law worksheet with answers

Which English statute allows a third party to enforce a contract term in some cases?

1. AMisrepresentation Act 1967
2. BUnfair Contract Terms Act 1977
3. CLaw Reform (Frustrated Contracts) Act 1943
4. DContracts (Rights of Third Parties) Act 1999

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

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

A term that the parties did not state, but which a court reads into the contract, is:

1. AAn express term
2. BA condition precedent
3. CA collateral warranty
4. DAn implied term

Damages for breach of contract are generally meant to:

1. AReturn both parties only to the position they were in before the contract was made
2. BPunish the party in breach
3. CPut the innocent party in the position as if the contract had been performed
4. DGive the innocent party a profit beyond their loss

A creditor agrees to take £600 in full settlement of a £1,000 debt that is due, then sues for the other £400. Under Pinnel's Case and Foakes v Beer, the creditor:

1. ACannot recover anything more
2. BCan recover only if the agreement was oral
3. CMust give back the £600 first
4. DCan usually recover the £400

Under UCTA 1977, a business-to-business clause excluding liability for property damage caused by negligence is valid:

1. AAlways, because businesses can bargain freely
2. BNever, in any circumstances
3. COnly if it satisfies the requirement of reasonableness
4. DOnly if signed by a company director

A council invites tenders by a deadline. A club submits on time, but the council wrongly treats it as late and ignores it. In Blackpool and Fylde Aero Club v Blackpool BC, the Court of Appeal held:

1. AThe council was obliged to accept the club's tender
2. BThe council breached an implied contract to consider conforming tenders
3. CThere was no obligation of any kind, as an invitation to tender is only an invitation to treat
4. DThe club could only claim in tort for negligence

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