Contract law worksheet with answers

Minors (under 18) entering contracts are generally:

1. AProtected, so many of their contracts are not enforceable against them
2. BLiable only if their parents sign too
3. CNever able to make any contract
4. DBound in exactly the same way as adults, unless their parents object in writing

A counter-offer has which effect on the original offer?

1. AIt accepts the original offer
2. BIt makes the original offer irrevocable
3. CIt rejects and ends the original offer
4. DIt has no effect at all

The duty to mitigate loss means that a claimant:

1. AMust accept any offer made by the party in breach
2. BMust sue within one month of the breach
3. CMust prove the breach was deliberate
4. DCannot recover for losses they could reasonably have avoided

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

A builder's job takes much longer and costs much more than planned because of labour shortages. Under Davis Contractors v Fareham UDC, the contract is:

1. AVoid, because the price was wrongly estimated
2. BFrustrated, because the costs rose unexpectedly and substantially
3. CNot frustrated, because it has only become more onerous
4. DAutomatically varied to a reasonable price

A fishing company receives fewer licences than it needs and chooses to assign them to its other ships, not the chartered one. In Maritime National Fish v Ocean Trawlers the charter was:

1. AFrustrated by the government licensing decision
2. BVoid, because licences were a condition precedent
3. CSuspended until more licences were issued
4. DNot frustrated, because the problem was self-induced

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

Under the EU Unfair Terms Directive, a non-negotiated consumer contract term is unfair if:

1. AIt benefits the trader in any way, even where the consumer's rights are not significantly affected
2. BContrary to good faith, it causes a significant imbalance to the consumer's detriment
3. CThe consumer did not read it
4. DIt was written in small font