Contract law worksheet with answers

A shop displays a jacket with a price tag in its window. In English law this is usually:

1. AAn acceptance
2. BA unilateral contract
3. CA binding offer to sell at that price
4. DAn invitation to treat

Anticipatory breach occurs when:

1. AA party performs earlier than the agreed date
2. BA party breaches a term that has not yet been agreed
3. CA party shows, before performance is due, that it will not perform
4. DAn expert predicts, before performance is due, that a party will probably breach

For commercial agreements, English courts presume that the parties:

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

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

What is consideration in common law contracts?

1. AThe intention to create legal relations shown by both parties
2. BCareful thought before signing
3. CThe written form of a contract
4. DSomething of value given in exchange for a promise

A supplier receives a draft agreement, never signs or returns it, but both sides trade on its terms for years. A court is likely to find:

1. AA void agreement for lack of certainty
2. BNo contract, because nothing was signed
3. CA contract accepted by conduct
4. DA contract only for the first delivery

An act done before a promise was made can still be good consideration if:

1. AThe later promise was made in writing
2. BIt was valuable to the promisor when it was done
3. CIt was requested, payment was understood, and the promise would otherwise be enforceable
4. DThe act was done within one year before the promise and was of some value to the promisor

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