Contract law worksheet with answers

Rescission of a contract means:

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

Which elements are generally needed to form a contract?

1. AA payment made in advance
2. BA witness for each party
3. CAn offer and an acceptance, with the intention to be legally bound
4. DA written document signed by both parties and certified by a notary

The duty to mitigate loss means that a claimant:

1. AMust accept any offer made by the party in breach
2. BCannot recover for losses they could reasonably have avoided
3. CMust sue within one month of the breach
4. DMust prove the breach was deliberate

A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:

1. AA mere opinion about future income
2. BA breach of an implied condition of quality
3. CA misrepresentation, because he should have corrected the statement
4. DNot a misrepresentation, because the statement was true when it was made

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

A decorator finishes the work but with minor defects that are cheap to fix. Under Hoenig v Isaacs, the decorator is entitled to:

1. AThe full price with no deduction
2. BThe price less the cost of putting the defects right
3. CNothing, because performance was not exact
4. DOnly payment for the materials used

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

An actress is wrongly denied the chance to take part in the final stage of a competition in which some finalists would win prizes. In Chaplin v Hicks:

1. AShe could recover damages for the loss of a chance
2. BShe could recover nothing, because her loss was uncertain
3. CShe could recover the full value of a prize
4. DShe could recover only her travel expenses