Contract law worksheet with answers

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 prove the breach was deliberate
4. DMust sue within one month of the breach

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

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

Under English law, a minor who is supplied with necessaries must pay:

1. ANothing, because minors are never bound
2. BOnly if a parent signed the contract
3. CDouble the contract price
4. DA reasonable price for them

A buyer is told false figures about a business and is offered documents that would reveal the truth, but does not read them. Under Redgrave v Hurd:

1. AThe misrepresentation becomes a term
2. BThe buyer can still rely on the misrepresentation
3. CThe buyer loses all remedies by failing to check
4. DThe buyer can claim only half the loss

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

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

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 she stayed in the room
2. BBinding from the second night onwards
3. CNot part of the contract, because it came after formation
4. DPart of the contract, because hotels may exclude liability

In Great Peace Shipping v Tsavliris Salvage, the Court of Appeal held that a contract is void for common mistake only if the mistake makes performance:

1. ADifferent from the contract in a minor detail
2. BMore expensive to carry out than both parties had expected when contracting
3. CImpossible or essentially different from what the parties agreed
4. DCommercially less attractive for one party

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