Contract law worksheet with answers

The duty to mitigate loss means that a claimant:

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

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

1. AThe return of land transferred under the contract
2. BA reasonable sum for work done or services provided
3. CAn order stopping the other party from acting
4. DPunitive damages for deliberate breach

A "voidable" contract is one that:

1. ANever had any legal effect at all
2. BIs valid until the affected party chooses to set it aside
3. CIs a criminal agreement and illegal
4. DCan only be ended by both parties agreeing together to cancel it

A boiler is delivered late to a laundry. The seller knew it was needed for the business but not about especially lucrative dyeing contracts. Under Victoria Laundry v Newman, the laundry recovers:

1. AAll lost profits, including those from the especially lucrative dyeing contracts
2. BOnly the price it paid for the boiler
3. CNothing, because all lost profits are too remote
4. DOrdinary lost profits, but not the profits from the special contracts

A seller says the farms are "fully let" but does not mention that the tenants have given notice to leave. This is:

1. AMere silence, which is never actionable
2. BA mere puff with no legal effect
3. CA statement of opinion only
4. DA misrepresentation by half-truth

An actress agrees to act only for one studio and not for any other during the contract. She leaves to act for a rival. The court is most likely to:

1. AOrder her to pay the rival's profits to the court
2. BRefuse any remedy, as personal services are involved
3. CGrant an injunction stopping her acting for the rival
4. DOrder her to perform her contract with the studio

A husband who has left his wife signs a note promising to transfer the house to her if she pays off the mortgage. She does. In Merritt v Merritt, the promise was:

1. AEnforceable only because it was made by deed
2. BUnenforceable, because it was a domestic arrangement between husband and wife
3. CUnenforceable, because she gave no consideration
4. DEnforceable, because separated spouses are presumed to intend legal relations

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