Contract law worksheet with answers

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

1. ACondition
2. BRepresentation
3. CWarranty
4. DInvitation to treat

Which statement about silence as acceptance is correct in general?

1. ASilence counts as acceptance after 24 hours
2. BSilence counts as acceptance if the offeror says so
3. CSilence usually does not count as acceptance
4. DSilence always counts as acceptance

A "voidable" contract is one that:

1. ACan only be ended by both parties agreeing together to cancel it
2. BNever had any legal effect at all
3. CIs valid until the affected party chooses to set it aside
4. DIs a criminal agreement and illegal

At an auction in England, the contract of sale is completed when:

1. AThe auctioneer brings down the hammer
2. BThe bidder makes the highest bid
3. CThe buyer collects the goods
4. DThe auctioneer puts the item up for sale

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

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

Under section 2(1) of the Misrepresentation Act 1967, a person who made a false statement inducing a contract is liable in damages unless:

1. AThe claimant proves that the statement was made fraudulently and not merely carelessly
2. BThe contract was made between two businesses
3. CThey prove they had reasonable grounds to believe, and did believe, it was true
4. DThe statement was made orally and not in writing

Mutual mistake as to the existence of the subject matter (for example the goods no longer exist when contracting) usually makes the contract:

1. AValid, with compensation set by the court
2. BVoid
3. CFully valid, with the buyer bearing the risk
4. DVoidable at either party's option

In a face-to-face sale, a rogue falsely claims to be a famous actor, pays with a worthless cheque, and sells the car on to an innocent buyer. Under Lewis v Averay, the first contract was:

1. AVoid for mistake, so the innocent buyer got no title
2. BVoidable for fraud, so the innocent buyer got good title
3. CVoid, because cheques cannot pay for cars
4. DValid, and the seller could only sue the rogue in tort