Contract law worksheet with answers

Who can usually enforce a contract?

1. AOnly lawyers
2. BThe parties to the contract
3. CAnyone who hears about it or is affected by it
4. DOnly the state

Rescission of a contract means:

1. AEnding the contract for the future only and claiming damages for lost profits
2. BCorrecting the wording of a written contract
3. COrdering a party to perform as promised
4. DSetting the contract aside so the parties return to their original positions

For commercial agreements, English courts presume that the parties:

1. AIntend to create legal relations
2. BIntend only a moral obligation
3. CIntend the agreement to be a gift
4. DDo not intend to create legal relations

A court will imply a term in fact into a commercial contract only if:

1. AIt would be reasonable and fair to both parties, even if it is not necessary
2. BIt is usual in contracts in other industries
3. CIt is necessary for business efficacy or so obvious it goes without saying
4. DIt would benefit the weaker party

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 the offeror reads it a week later
3. CWhen it is confirmed by post
4. DWhen it is received by the offeror

A contract made under duress may be:

1. AAvoided (set aside) by the pressured party
2. BTurned into a criminal offence only
3. CAutomatically valid with no remedy
4. DEnforced against the pressured party in every case

In English law, a presumption of undue influence typically arises when:

1. AAny contract is made between members of a family
2. BThere is a relationship of trust and confidence and a transaction that calls for explanation
3. CAny customer signs a contract with a bank
4. DThe price agreed is substantially lower than the market price, whatever the relationship of the parties

A distribution agreement says it is not a formal or legal agreement and is "binding in honour only". In Rose and Frank v Crompton, the court held:

1. AThe agreement was void as illegal
2. BThe agreement was a deed and binding
3. CThe agreement was binding despite those words
4. DThe agreement itself was not legally binding