Contract law worksheet with answers

The duty to mitigate loss means that a claimant:

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

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

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

An offeree asks whether the offeror would accept delivery in two parts, without rejecting the original terms. This is:

1. AA request for information
2. BAn acceptance
3. CA revocation
4. DA counter-offer

A supplier receives a draft agreement, never signs or returns it, but both sides trade on its terms for years. A court is likely to find:

1. AA contract accepted by conduct
2. BA void agreement for lack of certainty
3. CA contract only for the first delivery
4. DNo contract, because nothing was signed

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

An unusual and onerous term in standard conditions will only be incorporated if:

1. AIt was fairly and reasonably brought to the other party's attention
2. BIt appears on the back of a receipt
3. CIt is printed anywhere in the contract documents, however small the type
4. DThe other party could have found it online

A carrier, knowing a small company depends on its deliveries to supply a major customer, refuses to continue unless paid a higher minimum price. The company agrees as it has no alternative. In Atlas Express v Kafco:

1. AThe new agreement was binding, as the carrier's continued performance was a practical benefit
2. BThe carrier committed a crime of extortion
3. CThe new agreement was binding as a free variation
4. DThe new agreement was not binding, due to economic duress

A pays B money to bet on shares using insider information, which is illegal. The bet never happens and A wants the money back. In Patel v Mirza, the Supreme Court held:

1. AA could recover the money, applying a policy-based approach to illegality
2. BA could not recover, because no claim can be founded on an illegal agreement
3. CA could recover only half the money
4. DThe money passed to the state as illegal proceeds