Contract law worksheet with answers

An offer with no stated time limit lapses:

1. AAfter exactly seven days
2. BAt midnight on the day it is made
3. CAfter a reasonable time
4. DNever, unless revoked

The rule that consideration "must be sufficient but need not be adequate" means:

1. AIt must be equal to the market value of the promise it is given in exchange for
2. BIt must always be paid in money
3. CIt must be paid before the contract is made
4. DIt must have some value in law, but need not match the value of the promise

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

1. AA collateral warranty
2. BA condition precedent
3. CAn implied term
4. DAn express term

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

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

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

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

A rogue uses a stolen driving licence to take a car on written hire-purchase in another person's name. In Shogun Finance v Hudson, the majority of the House of Lords held:

1. AThe contract was void, because hire-purchase agreements must always be made face to face
2. BThe contract was valid with the rogue himself
3. CThe contract was void, because the finance company dealt only with the named person
4. DThe contract was voidable, so a later buyer got good title

A buyer specifically asks a surveyor to check aircraft noise at a property. The surveyor negligently reports no problem. In Farley v Skinner:

1. ANo damages were recoverable, because damages for distress or discomfort are always excluded in contract
2. BThe buyer had to sell the house before claiming
3. COnly the difference in market value was recoverable
4. DDamages for discomfort were recoverable, as peace of mind was an important object of the obligation