Contract Law Revision

Contract Law Quiz

Test yourself on the principles of contract law.

This quiz selects 50 random questions from the Ipsa Loquitur Contract Law question bank, so the quiz will be different each time you take it. To take all the questions on a particular subject, visit that subject's revision page.

1 / 50

In promissory estoppel, what three factors are relevant when determining whether it would be inequitable to renege on a promise?

It was foreseeable at the time of contracting that the defendant might need to alter the contract in future

The promise was extracted by lies

The defendant is now able to pay any sums owed

The defendant has a counter-claim against the claimant

The defendant has not suffered any detriment

The promise was obtained by abusing the defendant's position

2 / 50

Anderson purchases a train ride from Smith. Just before the contract is formed, Smith issues Anderson a receipt and a ticket, both of which have an exclusion clause on the front in large, bold letters. Anderson is not aware of there being any exclusion clause because he does not read either document. Is the exclusion clause part of the contract?

No, because insufficient steps were taken to given notice to Anderson

Yes, because the receipt is a contractual document

Yes, because the ticket is a contractual document

No, because receipts and tickets are not usually contractual documents

Yes, because Anderson was given notice before contracting

No, because Anderson did not read the exclusion clause

3 / 50

Annabelle tells the swim team she is coaching that she will give £500 to the first member of the team that swims the English Channel. Ricardo, one of the team members, is not present. The next day he decides to swim the English Channel for fun, not knowing about Annabelle's offer. If he completes the challenge, is Annabelle bound to pay him the money?

4 / 50

A party to the contract purports to terminate the contract because of the defendant's breach. They give an invalid reason for terminating, but unbeknownst to them, the defendant has committed some other breach which entitles the innocent party to terminate. Is the innocent party in repudiatory breach because of their actions?

Yes

No

Potentially

5 / 50

For the purposes of demonstrating consideration under the rule in Williams v Roffey Bros, which of the following constitute a practical benefit?

The law is unclear

The chance of securing an additional benefit beyond the increased chance of securing performance

An additional benefit beyond the increased chance of securing performance

An increased chance of securing performance

6 / 50

Dennis owes Maureen £1000. He asks her if she will discharge the debt if he pays her £500. Taking pity on him, Maureen agrees. Has Dennis provided consideration for Maureen's promise to accept the lesser amount?

Yes

The law is unclear

No

7 / 50

Dennis owes Maureen £1000. He asks her if she will discharge the debt if he gives her his car, which is worth £800. Maureen agrees because she loves the car. Has Dennis provided consideration for Maureen's promise to discharge the debt?

Yes

The law is unclear

No

8 / 50

In which of the three following circumstances would the defence of common mistake apply?

The parties believe the subject matter of the contract to have a particular important quality which it does not

The subject matter of the contract is worth considerably less than the parties believe

The parties are unaware that the contract is impossible to perform at the time they enter into the contract

A difference in the quality of the goods makes the subject matter of the contract an essentially different kind of thing than was intended

One party has made a reasonable mistake as to the identity of the other party, and the other party knew this

The parties are unaware that the buyer of goods already has the relevant property interest they are trying to buy

One party has misrepresented their identity to the other party

9 / 50

When are damages available for innocent misrepresentation?

In lieu of rescission

Where the innocent party suffers property damage

In all cases

Never

10 / 50

Which two of the following factors are relevant to whether a statement is an offer?

Whether the parties have contracted before

The tone and context of the conversation

Whether the other party perceives that an offer has been made

How equivocal the statement is

Whether the statement maker intends to make an offer

11 / 50

Jubedul lets his office know that he is selling his pet cat Bianca for £50, and that if anyone would like to buy her they should let him know. Liz, his co-worker, sends him a letter containing £50, saying that she will buy Bianca. However, she puts the wrong address on the envelope and the letter never arrives. Has Liz accepted Jubedul's offer?

12 / 50

Promissory estoppel can be used to sue for damages or the recovery of payments where a party to a contract reneges on a promise not to enforce terms of the contract. True or false?

13 / 50

The courts may imply terms in law into custom, specialised contracts. True or false?

14 / 50

When are damages in deceit available for a misrepresentation?

Where the representation is fraudulent

Where the representation is negligent

Where the representation is fraudulent or negligent

Where the representation is negligent or innocent

Where the representation is fraudulent or innocent

15 / 50

At common law, can a third-party who did not provide consideration for a contract rely on the terms of that contract?

Yes, but only in relation to defences

No, unless the contract was made for their benefit

Yes, in all cases

No

16 / 50

Does the claimant need to establish that but for the threat, they would not have entered into the contract if they are trying to prove duress to the person?

17 / 50

In what two scenarios is a loss sufficiently non-remote to be recovered in an action for breach of contract?

Where the degree of loss or the way in which it happened was foreseeable

The loss is not unusual

The loss can reasonably be supposed to have been in the parties' contemplation when contracting

There is no unforeseeable act of nature or a third party interrupting the chain of causation

It is the kind of loss that happens naturally as a result of that type of breach

18 / 50

Can undue influence be demonstrated in cases where the parties had no relationship prior to the transaction?

No

Yes, but only if the claimant reposed a large amount of trust in the defendant

Yes, in all cases

Yes, but only if the claimant was vulnerable to or dependent on the defendant

19 / 50

In which two scenarios can a person rely on the defence of undue influence against a third-party?

Where the third-party is a lending bank

Where the third-party is also acting for the undue influencer in the transactions

Where the third-party did not take reasonable steps to investigate whether there might be undue influence

Where the third-party has actual knowledge of the undue influence

Where the third-party knew of circumstances from which a reasonable person would suspect undue influence

20 / 50

Maisy enters into a contract with a man falsely claiming to be her long-lost cousin, John, while they are catching up at a restaurant. Maisy later seeks to argue that she should not be bound by the contract, because she would not have entered into the contract had she known the man was not John. Is the man's identity a vital term of the contract?

No, because the parties contracted face-to-face

Yes, because the man lied about his identity

No, because the man's identity was only relevant to his creditworthiness

Only if Maisy can prove she would only have contracted with her real cousin and no-one else

21 / 50

Does the postal rule apply to cases where an offeror is seeking to withdraw his offer?

22 / 50

Alice contracts Bill to install new fans in her restaurant. Bill completes the work late, causing Alice considerable stress. Can Alice recover damages for her stress?

23 / 50

Specific proof is required to demonstrate intention to be legally bound where the parties have a family or social relationship. True or false?

24 / 50

Jules breaches a condition clause of his contract with Amy. Amy sees that she cannot sue Jules for damages, because there is an exclusion clause in the contract preventing her from doing so. She therefore terminates the contract, relying on the fundamental breach. She argues that since the contract is terminated, the exclusion clause is no longer applicable and she can now sue for damages. Is Amy correct?

25 / 50

A person enters into a contract to sell a car, and later discovers the contract is voidable. However, before they can end the contract, they discover that the car has been sold to a third-party who was unaware of the defect in title. Can the contract be voided?

26 / 50

Under the Consumer Rights Act 2015, when is a clause 'in good faith'?

When the trader has a legitimate and significant interest in including the clause

When the trader is not acting with intent to damage the consumer's interests

When the trader can reasonably assume that the consumer would have accepted the term in fair and equitable negotiations

When it is unlikely that the clause will ever be triggered

27 / 50

For the purposes of the defence of unilateral mistake, when can a term as to the quality of the goods be considered 'vital'?

Always

When the parties subjectively see that quality as vital to the contract

Never

When a reasonable person would think that quality was important to the contract

28 / 50

Which four factors indicate that a court should not imply a term in law?

Whether the term should exist is best considered an issue for Parliament and not the courts

There is precedent indicating that the term should not be implied

What the term should be is unclear

The term is not a fair, just or reasonable one to include

The term causes a severe imbalance in the parties' rights and obligations

A reasonable person in the parties' position would be unaware of the subject matter of the proposed term

The express terms of the contract appear to cover the situation

There are strong policy reasons for not including the term

29 / 50

When will the courts imply a customary term into a contract?

If the practice is clearly established, notorious and reasonable

If the practice is clearly established, notorious, reasonable and not contradicted by other contractual terms

If the parties agreed that the customs of their trade or industry would apply to the contract or their dealings

If the practice is universally-used, reasonable and not contradicted by other contractual terms

If the practice is universally-used and reasonable

30 / 50

What is the purpose of general contract damages?

To compensate the claimant

To compensate the claimant and strip the defendant of profits

To compensate the claimant and punish the defendant for wrongdoing

31 / 50

How can an offeror validly withdraw their offer?

By communicating the withdrawal to the offeree in writing

By forming the intention to withdraw the offer

By communicating the withdrawal directly to the offeree

By communicating the withdrawal to the offeree, directly or by a third-party

32 / 50

Laura contracts Stephen to arrange for someone to ghost-write her memoirs. For various reasons, it is not possible for Laura to obtain another person to do this. The relationship falls apart and Stephen refuses to perform. Writing the book in accordance with the contract would take time and require supervision. Can Laura obtain an order for specific performance?

33 / 50

ABC Bank is advancing money to a debtor. An individual tells the bank that they wish to act as a guarantor or surety for that debt. The debtor has unduly influenced this individual. When is the bank taken to have constructive notice of the presence of undue influence in the transaction?

They must investigate in all cases and have constructive notice if they fail to do so

Where they are actually aware of the undue influence by the debtor

Where the surety has not received legal advice

Where they are aware that the surety and the debtor have a non-commercial relationship

34 / 50

When is an existing contract discharged? (Three answers)

Where the parties agree to discharge the contract and provide consideration

Where the parties agree to discharge the contract

Where one of the parties entered into the contract under duress

Where the contract is frustrated

Where both parties have fully performed

Where one of the parties entered into the contract by mistake

35 / 50

Laura contracts Stephen to personally ghost-write her memoirs. Since Stephen knows her best, it is not possible for Laura to obtain another person to write the book. The relationship falls apart and Stephen refuses to write the book. Can Laura obtain an order for specific performance?

36 / 50

What factors are relevant to whether the defence of illegality is established? (Four answers)

The relative culpability of the parties

The seriousness of the illegality

The extent to which the claimant must rely on evidence of illegality to establish the claim

Whether the claimant knew his actions were illegal

Whether the evidence was acquired illegally

The importance of the illegal act or purpose to the parties transaction or interaction

The remedy the claimant is seeking

37 / 50

Which four factors indicate that an exclusion or limitation clause is reasonable under the Unfair Contract Terms Act 1977?

The breaching party was not at fault for the breach

The innocent party had the ability to contract with others without an exclusion clause

The innocent party was given an inducement to accept the term

Insurance against the loss was reasonably available

The type of breach the clause covered is common in the industry

Performance is high-risk to the breaching party

The likelihood of breach was low

38 / 50

The parties agree to a contract which stipulates that the defendant will not be paid until he performs his obligations in their entirety. Can this defendant be paid even though there is a breach of contract?

Only if the defendant has completed most of their obligations

Only if the breach is not substantial

Only if the defendant has substantially performed by completing the contract's main purpose

No

39 / 50

When establishing that the defendant's influence was undue for the purposes of the defence of undue influence, the claimant must show that the transaction was manifestly to their disadvantage. True or false?

40 / 50

Maisy enters into a contract over the phone with a man falsely claiming to be her estranged cousin, John. Maisy later seeks to argue that she should not be bound by the contract, because she would not have entered into the contract had she known the man was not John. Is the man's identity a vital term of the contract?

No, because the parties contracted at a distance

Yes, because the man lied about his identity

No, because the man's identity was only relevant to his creditworthiness

Yes, because Maisy intended to contract with a real, identified person who the man impersonated

41 / 50

What four factors indicate that family members or friends intended to be legally bound by their agreements?

The agreement was a significant undertaking for one or both parties

The parties are estranged

One party does the relevant work professionally

The parties were friends rather than blood relatives

There was an unconnected third-party to the agreement

The agreement contains a binding in honour clause

They had a written or signed agreement

42 / 50

On Saturday, Roger offers to sell Tyrone a car. He asks him to respond by next Thursday if he accepts. Tyrone sends Roger a letter by post on Monday agreeing to the deal, but it is lost in the post and never arrives. Has Tyrone accepted the offer?

43 / 50

When will the defence of illegality bar a claim?

When the overall fairness of the case requires this, on an assessment of the trio of considerations

When the claimant is acting illegally in bringing the claim

When the claimant must rely on evidence of their illegal act to establish the claim

When the claimant acquired the evidence to prove their claim illegally

44 / 50

If a third party has gained the right to rely on a contract's terms under the Contract (Rights of Third Parties) Act 1999, when do the original parties require their consent to vary or terminate the contract?

When the third party suffers some detriment as a result of the contract

When the third party has relied on the term and it was reasonably foreseeable that they would

When the third party relies on the term such that it would be inequitable to vary or rescind

When the third party communicates assent to the term to the promisee

When the promisor becomes aware that the third party has relied on the term

When the third party communicates assent to the term to the promissor

45 / 50

Complete this sentence: The defence of mistake renders the contract...

Voidable

Terminated

Void ab initio

46 / 50

When interpreting an express term of the contract, what information may the court take into account?

The parties' pre-contractual negotiations

The parties' post-contractual conduct

Background knowledge reasonably available to the parties at the time of contracting

47 / 50

The parties in a case reached an agreement for the claimant to do some work, but that agreement was stated to be subject to contract. Despite a written contract never being signed, the parties have begun performing as if there were a contract. Do the terms of the 'subject to contract' agreement apply?

Only if there is no applicable remedy in restitution

Yes

No

Only if the parties appear to have waived the 'subject to contract' stipulation

48 / 50

The defence of frustration renders a contract voidable. True or false?

49 / 50

What two conditions must be met for an agreement to be sufficiently certain to form a contract?

There must be clear evidence of intention to be legally bound

The intention to contract must be expressed sufficiently precisely that a clear meaning can be given to it

All reasonably relevant terms have been agreed

The parties must have at least agreed to agree the core terms of the contract

The main, essential and important terms of the contract must be clear

50 / 50

When is a liquidated damages clause void under the penalty clause rule?

All liquidated damages clauses are void under this rule

If it is at least partially designed to punish the breaching party for their breach

If it is not a genuine pre-estimate of the innocent party's damages

If it is completely out of proportion to the innocent party's legitimate interests

Your score is

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