Contract law worksheet with answers

A term that is fundamental to the contract, whose breach allows termination, is called in English law a:

1. AInvitation to treat
2. BWarranty
3. CCondition
4. DRepresentation

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

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

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 promisee must always pay in cash
3. CA person can enforce a promise only if they gave consideration for it
4. DThe consideration must be handed to a court

Under the Law Reform (Frustrated Contracts) Act 1943, money paid before a frustrating event is generally:

1. APayable twice, as a penalty
2. BPaid into court for distribution
3. CRecoverable, though the court may let the payee keep some for expenses
4. DLost, because the loss must lie where it falls once the contract is frustrated

A customer signs a contract containing an exclusion clause without reading it. Absent fraud or misrepresentation, the clause is generally:

1. AVoid for unilateral mistake
2. BIncorporated only if it was explained orally
3. CIncorporated, because a signature binds the signer
4. DNot incorporated, because it was not read

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

In a unilateral contract, once the offeree has started to perform the requested act:

1. AThe offeree becomes bound to complete performance
2. BThe offeror generally cannot revoke while performance continues
3. CThe offeror can still revoke at any time before performance is completed
4. DThe full reward becomes payable immediately

Liquidated damages clauses are enforceable in English law when:

1. AThey are agreed orally only
2. BThey protect a legitimate interest and are not out of all proportion to it
3. COnly the party in breach benefits from them
4. DThey are set as high as possible, so that they deter either party from breaching