Contract law worksheet with answers

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

1. ALaw Reform (Frustrated Contracts) Act 1943
2. BContracts (Rights of Third Parties) Act 1999
3. CUnfair Contract Terms Act 1977
4. DMisrepresentation Act 1967

Which statement about silence as acceptance is correct in general?

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

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

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

Sailors are promised extra wages for sailing a ship home after two crew members desert, but they do no more than their contract already required. In Stilk v Myrick the promise was:

1. AUnenforceable because it was made at sea
2. BEnforceable because the captain agreed freely
3. CEnforceable as a practical benefit
4. DUnenforceable for lack of consideration

A customer signs a contract containing an exclusion clause without reading it. Absent fraud or misrepresentation, the clause is generally:

1. AVoid for unilateral mistake
2. BNot incorporated, because it was not read
3. CIncorporated only if it was explained orally
4. DIncorporated, because a signature binds the signer

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

A husband who has left his wife signs a note promising to transfer the house to her if she pays off the mortgage. She does. In Merritt v Merritt, the promise was:

1. AEnforceable, because separated spouses are presumed to intend legal relations
2. BUnenforceable, because it was a domestic arrangement between husband and wife
3. CUnenforceable, because she gave no consideration
4. DEnforceable only because it was made by deed

A wife guarantees her husband's business debts to a bank. Under RBS v Etridge (No 2), the bank should normally:

1. ASeek a court's approval of the guarantee
2. BHave the husband explain the risks to her
3. CRefuse the guarantee unless she has her own income
4. DObtain confirmation that a solicitor has advised her