Contract law worksheet with answers

An offer with no stated time limit lapses:

1. ANever, unless revoked
2. BAfter a reasonable time
3. CAfter exactly seven days
4. DAt midnight on the day it is made

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

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

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

1. AContracts (Rights of Third Parties) Act 1999
2. BLaw Reform (Frustrated Contracts) Act 1943
3. CMisrepresentation Act 1967
4. DUnfair Contract Terms Act 1977

A boiler is delivered late to a laundry. The seller knew it was needed for the business but not about especially lucrative dyeing contracts. Under Victoria Laundry v Newman, the laundry recovers:

1. AOrdinary lost profits, but not the profits from the special contracts
2. BNothing, because all lost profits are too remote
3. COnly the price it paid for the boiler
4. DAll lost profits, including those from the especially lucrative dyeing contracts

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

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

An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:

1. AWhen it is sent by the offeree
2. BWhen it is received by the offeror
3. CWhen the offeror reads it a week later
4. DWhen it is confirmed by post

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

A carrier, knowing a small company depends on its deliveries to supply a major customer, refuses to continue unless paid a higher minimum price. The company agrees as it has no alternative. In Atlas Express v Kafco:

1. AThe new agreement was binding, as the carrier's continued performance was a practical benefit
2. BThe new agreement was binding as a free variation
3. CThe new agreement was not binding, due to economic duress
4. DThe carrier committed a crime of extortion