Contract law worksheet with answers

What is a breach of contract?

1. AWithdrawing an offer before it is accepted, after promising to keep it open
2. BNegotiating a better price
3. CRefusing to sign a contract
4. DFailing to perform a contractual obligation without a lawful excuse

In contract law, the "offeree" is:

1. AThe person who makes the offer
2. BA third party who benefits from the contract
3. CThe lawyer who drafts the offer
4. DThe person to whom an offer is made

Minors (under 18) entering contracts are generally:

1. ANever able to make any contract
2. BProtected, so many of their contracts are not enforceable against them
3. CBound in exactly the same way as adults, unless their parents object in writing
4. DLiable only if their parents sign too

An offer says acceptance must be made "by notice in writing to us". The offeree posts an acceptance, which is lost. Under Holwell Securities v Hughes:

1. AThere is no contract, because actual notice was required
2. BA contract was formed when the offeree decided to accept
3. CA contract was formed when the letter was posted
4. DThe contract is void for common mistake

Which of these will usually bar rescission for misrepresentation?

1. AThe innocent party affirms the contract after learning the truth
2. BThe contract was made in writing
3. CThe misrepresentation was made by a company
4. DThe misrepresentation was innocent rather than fraudulent or negligent

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

An employer pays large severance sums to two directors, later discovering it could have dismissed them for nothing because of their earlier misconduct. In Bell v Lever Bros, the agreements were:

1. AValid, because the mistake about quality was not fundamental enough
2. BUnenforceable because severance needs a deed
3. CVoidable for the directors' misrepresentation by failing to disclose their misconduct
4. DVoid for common mistake about the contracts

A former spy publishes his memoirs in breach of his undertaking not to disclose official information. In AG v Blake, the House of Lords:

1. AOrdered him to account for his profits, in an exceptional case
2. BAwarded only nominal damages
3. CAwarded punitive damages to the Crown
4. DHeld that no remedy was available