Contract law worksheet with answers

In English law, agreements between spouses living together in harmony are presumed to be:

1. ABinding only for one year
2. BAlways legally binding
3. CNot intended to be legally binding
4. DBinding only if witnessed

Which statement about silence as acceptance is correct in general?

1. ASilence always counts as acceptance
2. BSilence counts as acceptance after 24 hours
3. CSilence usually does not count as acceptance
4. DSilence counts as acceptance if the offeror says so

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

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

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

An acceptance is sent by telex and arrives in the offeror's office during working hours. Under Entores v Miles Far East, acceptance takes effect:

1. AWhen the offeror reads it a week later
2. BWhen it is received by the offeror
3. CWhen it is sent by the offeree
4. DWhen it is confirmed by post

An actor withdraws from a TV film and the company cannot prove what profit the film would have made. It may claim:

1. AIts estimated profits from the film, even if they are purely speculative
2. BOnly nominal damages of a small sum
3. CIts wasted expenditure, including costs incurred before the contract
4. DPunitive damages to deter the actor

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

In a face-to-face sale, a rogue falsely claims to be a famous actor, pays with a worthless cheque, and sells the car on to an innocent buyer. Under Lewis v Averay, the first contract was:

1. AVoid, because cheques cannot pay for cars
2. BVoid for mistake, so the innocent buyer got no title
3. CValid, and the seller could only sue the rogue in tort
4. DVoidable for fraud, so the innocent buyer got good title