Contract law worksheet with answers

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

1. AMisrepresentation Act 1967
2. BUnfair Contract Terms Act 1977
3. CLaw Reform (Frustrated Contracts) Act 1943
4. DContracts (Rights of Third Parties) Act 1999

When can an offer generally be withdrawn?

1. AOnly by a court
2. BNever, once it has been made
3. COnly after it has been accepted
4. DBefore it has been accepted

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

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

A creditor agrees to take £600 in full settlement of a £1,000 debt that is due, then sues for the other £400. Under Pinnel's Case and Foakes v Beer, the creditor:

1. ACannot recover anything more
2. BCan usually recover the £400
3. CCan recover only if the agreement was oral
4. DMust give back the £600 first

Damages for breach of contract are generally meant to:

1. APunish the party in breach
2. BReturn both parties only to the position they were in before the contract was made
3. CPut the innocent party in the position as if the contract had been performed
4. DGive the innocent party a profit beyond their loss

A promises to keep an offer open until Friday. On Thursday, B hears from a reliable third party that A has sold the property to someone else. Under Dickinson v Dodds:

1. AThe offer has been revoked, so B can no longer accept
2. BThe offer stays open until Friday, as A promised
3. CB can sue A for breaking the promise to keep it open
4. DB can accept and claim the property from the new buyer

Which statement about the parol evidence rule is correct?

1. ACourts must accept any later oral statement as overriding the express written terms of the contract
2. BOral contracts are always invalid
3. CEvidence outside a written contract is generally not admitted to add to or vary its terms
4. DWritten contracts can never be interpreted

A flat is hired for two days to watch a coronation procession, which is cancelled because the King is ill. The contract does not mention the procession. In Krell v Henry:

1. AThe hirer had to pay as the risk was his
2. BThe contract was not frustrated, because the flat was still available
3. CThe contract was frustrated, because the procession was its foundation
4. DThe contract was void for common mistake