Contract law worksheet with answers

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

1. AWarranty
2. BCondition
3. CInvitation to treat
4. DRepresentation

A vague sales claim such as "the best coffee in the world" is usually treated as:

1. AA mere puff with no legal effect
2. BAn implied warranty of quality
3. CA fraudulent misrepresentation
4. DA condition of the contract

The rule that consideration "must be sufficient but need not be adequate" means:

1. AIt must be equal to the market value of the promise it is given in exchange for
2. BIt must have some value in law, but need not match the value of the promise
3. CIt must be paid before the contract is made
4. DIt must always be paid in money

A builder makes a swimming pool shallower than agreed. It is still safe and no less valuable, and rebuilding would cost far more than any benefit. In Ruxley Electronics v Forsyth the owner received:

1. ANothing, as there was no loss in value
2. BA full refund of the contract price
3. CThe full cost of rebuilding the pool
4. DA modest sum for loss of amenity

A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:

1. AA breach of an implied condition of quality
2. BA mere opinion about future income
3. CNot a misrepresentation, because the statement was true when it was made
4. DA misrepresentation, because he should have corrected the statement

Damages for breach of contract are generally meant to:

1. AGive the innocent party a profit beyond their loss
2. BPut the innocent party in the position as if the contract had been performed
3. CReturn both parties only to the position they were in before the contract was made
4. DPunish the party in breach

A pays B money to bet on shares using insider information, which is illegal. The bet never happens and A wants the money back. In Patel v Mirza, the Supreme Court held:

1. AA could recover only half the money
2. BThe money passed to the state as illegal proceeds
3. CA could recover the money, applying a policy-based approach to illegality
4. DA could not recover, because no claim can be founded on an illegal agreement

Two parties agree to continue negotiating for the sale of a business, with no fixed period. In Walford v Miles, the House of Lords held that a bare agreement to negotiate in good faith is:

1. AEnforceable as a lock-out agreement
2. BUnenforceable, because it lacks certainty
3. CEnforceable, as an implied duty of good faith
4. DEnforceable only if made in writing