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. BWarranty
3. CInvitation to treat
4. DRepresentation

The rule that "consideration must move from the promisee" means:

1. AThe promisee must always pay in cash
2. BA person can enforce a promise only if they gave consideration for it
3. CThe promisor must provide all the consideration for the promise it makes
4. DThe consideration must be handed to a court

Which statement about silence as acceptance is correct in general?

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

An actress agrees to act only for one studio and not for any other during the contract. She leaves to act for a rival. The court is most likely to:

1. AOrder her to pay the rival's profits to the court
2. BOrder her to perform her contract with the studio
3. CGrant an injunction stopping her acting for the rival
4. DRefuse any remedy, as personal services are involved

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. AThey prove they had reasonable grounds to believe, and did believe, it was true
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. DThe contract was made between two businesses

A hotel guest sees an exclusion notice in her room only after booking and paying at reception. Under Olley v Marlborough Court Hotel, the notice is:

1. APart of the contract, because hotels may exclude liability
2. BNot part of the contract, because it came after formation
3. CPart of the contract, because she stayed in the room
4. DBinding from the second night onwards

A chartered ship is returned late, and the owner loses a very profitable follow-on charter. In The Achilleas, the House of Lords held the charterer was liable:

1. AFor the whole profit lost on the follow-on charter, as it was foreseeable
2. BFor no loss, because late return is not a breach
3. COnly for the market rate difference during the overrun period
4. DFor punitive damages, because the delay was deliberate

A seller quotes on its terms with a price variation clause. The buyer orders on its own terms without that clause, with a tear-off acknowledgement slip, which the seller signs and returns. In Butler Machine Tool v Ex-Cell-O, the contract was on:

1. AThe buyer's terms, because the seller accepted its counter-offer
2. BA mixture of terms chosen by the court as fair
3. CNo terms, because there was no contract
4. DThe seller's terms, because it sent its terms and price variation clause first