Contract law worksheet with answers

For commercial agreements, English courts presume that the parties:

1. AIntend the agreement to be a gift
2. BIntend only a moral obligation
3. CIntend to create legal relations
4. DDo not intend to create legal relations

In England and Wales, a contract for the sale of land must be:

1. AIn writing, containing all agreed terms, and signed by both parties
2. BMade orally in front of two witnesses
3. CApproved by a court and registered with HM Land Registry before it is made
4. DMade only through an estate agent

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

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

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 confirmed by post
4. DWhen it is sent by the offeree

A seller of land never used for sheep says it could carry 2,000 sheep. Both know he has no experience of sheep farming on it. The statement is most likely:

1. AAn honest opinion, not a misrepresentation
2. BA condition of the contract
3. CA statement of future intention
4. DA fraudulent misrepresentation

Promissory estoppel can prevent a party from:

1. AGoing back on a promise not to enforce strict legal rights, when the other relied on it
2. BMaking any new promises
3. CSuing for any breach at all, including breaches entirely unrelated to the promise that it made
4. DEntering into future contracts

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

Which statement about the parol evidence rule is correct?

1. AOral contracts are always invalid
2. BCourts must accept any later oral statement as overriding the express written terms of the contract
3. CEvidence outside a written contract is generally not admitted to add to or vary its terms
4. DWritten contracts can never be interpreted