Contract law worksheet with answers

A term that the parties did not state, but which a court reads into the contract, is:

1. AAn express term
2. BAn implied term
3. CA collateral warranty
4. DA condition precedent

A unilateral contract is one in which:

1. AOne party promises something in return for the other performing an act
2. BOnly one party is allowed to terminate it
3. CThe terms are imposed by statute on one party
4. DOnly one party signs the written document, so only that party is bound by it

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

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

A contract made under duress may be:

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

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

A boiler is delivered late to a laundry. The seller knew it was needed for the business but not about especially lucrative dyeing contracts. Under Victoria Laundry v Newman, the laundry recovers:

1. AOnly the price it paid for the boiler
2. BAll lost profits, including those from the especially lucrative dyeing contracts
3. CNothing, because all lost profits are too remote
4. DOrdinary lost profits, but not the profits from the special contracts

A van is bought "on hire-purchase terms" with no further detail, and such terms varied widely in practice. In Scammell v Ouston, the House of Lords held:

1. AThe seller's usual terms applied
2. BThere was a contract on the standard hire-purchase terms of the market
3. CThere was a contract at a reasonable price
4. DThere was no contract, because the terms were too vague

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