Contract law worksheet with answers

Under the contra proferentem rule, an ambiguous term is interpreted:

1. AIn favour of the party who drafted it
2. BAs if it were not part of the contract
3. CAgainst the party who relies on it
4. DIn favour of the stronger party

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

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

A claim on a "quantum meruit" is a claim for:

1. APunitive damages for deliberate breach
2. BThe return of land transferred under the contract
3. CA reasonable sum for work done or services provided
4. DAn order stopping the other party from acting

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

A contract made under duress may be:

1. AAvoided (set aside) by the pressured party
2. BEnforced against the pressured party in every case
3. CAutomatically valid with no remedy
4. DTurned into a criminal offence only

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

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

A contract states it can be varied only in signed writing. The parties later agree an oral variation. In MWB Business Exchange v Rock Advertising, the Supreme Court held:

1. AThe oral variation was ineffective, because the clause was binding
2. BThe variation was effective as it had consideration
3. CThe oral variation was effective, because parties can always vary orally
4. DThe clause was void as against public policy