Contract law worksheet with answers

Which English statute allows a third party to enforce a contract term in some cases?

1. AUnfair Contract Terms Act 1977
2. BContracts (Rights of Third Parties) Act 1999
3. CLaw Reform (Frustrated Contracts) Act 1943
4. DMisrepresentation Act 1967

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

Under the UK Consumer Rights Act 2015, goods supplied by a trader to a consumer must be:

1. ASold below the recommended retail price
2. BBrand new and in their original packaging
3. CCovered by a five-year manufacturer guarantee against all defects
4. DOf satisfactory quality, fit for purpose and as described

A doctor selling his practice truthfully states its income, but the income falls sharply before the contract is signed and he says nothing. This is:

1. AA mere opinion about future income
2. BA misrepresentation, because he should have corrected the statement
3. CNot a misrepresentation, because the statement was true when it was made
4. DA breach of an implied condition of quality

Under UCTA 1977, a business-to-business clause excluding liability for property damage caused by negligence is valid:

1. AOnly if signed by a company director
2. BAlways, because businesses can bargain freely
3. CNever, in any circumstances
4. DOnly if it satisfies the requirement of reasonableness

A hotel guest sees an exclusion notice in her room only after booking and paying at reception. Under Olley v Marlborough Court Hotel, the notice is:

1. APart of the contract, because she stayed in the room
2. BNot part of the contract, because it came after formation
3. CPart of the contract, because hotels may exclude liability
4. DBinding from the second night onwards

A van is bought "on hire-purchase terms" with no further detail, and such terms varied widely in practice. In Scammell v Ouston, the House of Lords held:

1. AThere was a contract on the standard hire-purchase terms of the market
2. BThere was a contract at a reasonable price
3. CThe seller's usual terms applied
4. DThere was no contract, because the terms were too vague

A council writes that it "may be prepared to sell" a house to a tenant and invites a formal application. The tenant applies, then the council changes its policy. In Gibson v Manchester City Council, the House of Lords held:

1. AA contract was formed when the council's letter was sent to the tenant
2. BThere was no contract, because the letter was not an offer
3. CA contract was formed when the tenant applied
4. DThe council was bound by estoppel to sell