Contract law worksheet with answers

According to Derry v Peek, a misrepresentation is fraudulent if the maker:

1. AKnew it was false, did not believe it, or was reckless whether it was true
2. BMade a profit from the contract that followed
3. CMade it carelessly and without checking the facts, though honestly believing it
4. DMade it in a written document

Anticipatory breach occurs when:

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

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 fraudulent misrepresentation
4. DA condition of the contract

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

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

In Hadley v Baxendale, damages are recoverable for losses that:

1. AThe claimant suffered only after the trial
2. BWere caused by a third party
3. CWere caused in any factual sense by the breach, however unusual and unforeseeable they were
4. DArise naturally from the breach or were in the reasonable contemplation of both parties

Promissory estoppel can prevent a party from:

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

Liquidated damages clauses are enforceable in English law when:

1. AThey are agreed orally only
2. BThey are set as high as possible, so that they deter either party from breaching
3. CThey protect a legitimate interest and are not out of all proportion to it
4. DOnly the party in breach benefits from them

Two parties agree to continue negotiating for the sale of a business, with no fixed period. In Walford v Miles, the House of Lords held that a bare agreement to negotiate in good faith is:

1. AEnforceable, as an implied duty of good faith
2. BEnforceable only if made in writing
3. CEnforceable as a lock-out agreement
4. DUnenforceable, because it lacks certainty