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

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?

2 / 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?

3 / 50

What is the parol evidence rule?

The court cannot imply terms into a written contract

Extraneous evidence can never be admitted to contradict the terms of a written or oral contract

There is a rebuttable presumption that extraneous evidence cannot be admitted to contradict the terms of a written contract

Extraneous evidence can never be admitted to contradict the terms of a written contract

4 / 50

Phil makes a contract with Ingrid for his old shed to be torn down in exchange for £200. His next-door neighbour Andrew, who thinks the shed is an eye-sore, says he will pay Ingrid an extra £100 for taking down Phil's shed. Ingrid accepts and takes down the shed. Has Ingrid provided consideration for Andrew's promise?

No

Yes

The law is unclear

5 / 50

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

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

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

When it is unlikely that the clause will ever be triggered

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

6 / 50

When will an injunction be refused despite the relevant test being met? (Three answers)

If the claimant acted inequitably

Where the defendant would suffer undue loss if they succeeded at trial

Where granting the injunction would amount to indirect specific performance

Where the obligation or wrong involves the use of land

If the claimant acquiesced in the wrong

Where the claimant is unlikely to win the case

7 / 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 man's identity was only relevant to his creditworthiness

Yes, because the man lied about his identity

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

No, because the parties contracted face-to-face

8 / 50

When is an existing contract discharged? (Three answers)

Where one of the parties entered into the contract under duress

Where the contract is frustrated

Where the parties agree to discharge the contract

Where both parties have fully performed

Where one of the parties entered into the contract by mistake

Where the parties agree to discharge the contract and provide consideration

9 / 50

How do the courts determine the meaning of an express term of the contract?

By looking for unity in the party's subjective understandings

By interpreting the contract according to the literal meaning of its words

By asking objectively what a reasonable bystander would take the term to mean

10 / 50

Is it a failure to mitigate to refuse to terminate a contract in response to a repudiatory breach, where this refusal leads to further loss?

No, unless the consequences of the breach are relatively minor

Only if the refusal to terminate is unreasonable

Only if the claimant has no legitimate interest in affirming the contract

No

Yes

11 / 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?

12 / 50

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

Voidable

Terminated

Void ab initio

13 / 50

For an exclusion or limitation clause to be incorporated into a contract at common law, when must reasonable notice of the clause be given to the other party?

At any time

When the other party asks

Within a reasonable period of entering the contract

Before the contract is entered into

14 / 50

Alice contracts Bill to install new fans in her restaurant. Bill completes the work defectively, causing a fan to fall on Alice's head. She suffers a brain injury and develops depression as a result. Can Alice recover damages for her mental illness and emotional distress?

15 / 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?

The law is unclear

Yes

No

16 / 50

When determining if the defence of misrepresentation applies, the courts will presume, in the absence of contrary evidence, that the claimant relied on the statement if a reasonable person would have relied on it. True or false?

17 / 50

For an exclusion or limitation clause to be incorporated into a contract by notice, the party relying on the term must have actually made the other party aware of it. True or false?

18 / 50

When should the doctrine of contra proferentem apply?

Only as a last resort

Only in cases involving fundamental breach

Only in cases involving negligence

Only in business-to-business contract cases

Only in business-to-consumer contract cases

In all cases

19 / 50

The parties have reached an agreement, but have not agreed on an important term such as the price. Is the contract void for uncertainty?

Yes, unless the parties specified an objective, external metric to make the term certain

No

No, but only if the parties have agreed to agree those terms

Yes

20 / 50

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

If the practice is universally-used, 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 clearly established, notorious and reasonable

If the practice is universally-used and reasonable

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

21 / 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?

Yes, because the ticket is a contractual document

No, because Anderson did not read the exclusion clause

Yes, because Anderson was given notice before contracting

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

Yes, because the receipt is a contractual document

No, because receipts and tickets are not usually contractual documents

22 / 50

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

23 / 50

Dennis owes Maureen £1000. Dennis asks Maureen if she will discharge the debt if his sister Dee pays her £600. Maureen agrees. Has Dennis provided consideration for Maureen's promise to discharge the debt?

No

The law is unclear

Yes

24 / 50

When can an offer be revoked?

An offer cannot be revoked

At any time

At any time, so long as the offer does not state it will remain open for a particular amount of time

25 / 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 does not arrive until Friday. Has Tyrone accepted the offer?

26 / 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?

No

Yes

Potentially

27 / 50

In which three scenarios must an exclusion or limitation clause satisfy the requirement of reasonableness under the Unfair Contract Terms Act 1977 before it can be enforced?

Where it purports to exclude for economic loss or property damage caused by negligence

Where the clause purports to exclude liability for misrepresentation

Where the parties have contracted on one party's standard written terms

Where the clause was specifically negotiated

Where the clause purports to exclude liability against a consumer

Where it purports to exclude for personal injury, death, economic loss or property damage caused by negligence

28 / 50

If a contract is voidable, can either party rely on its terms?

Both parties can only rely on any obligations which became due prior to the date the innocent party voided it

Both parties can rely on the contract, but only if the innocent party affirms it

Yes, but only the innocent party

No

29 / 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?

30 / 50

Under the Contract (Rights of Third Parties) Act 1999, in what two scenarios can a third-party to a contract enforce the terms of that contract?

Where the non-enforcement of the contract causes the third party damage

Where the contract does not expressly or implicitly rule out third party enforcement

Where the contract expressly says they can

Where the contract purports to confer a benefit on them, assuming no evidence of contrary intention

31 / 50

When establishing the defence of undue influence, how does the claimant demonstrate actual influence?

By showing that the claimant was vulnerable to or dependent on the defendant because of some other reason, such as mental illness, ill health or age

By showing they were in a relationship with the defendant in which they reposed large amounts of trust and confidence

By providing evidence of real threats or pressure to enter into the contract

By showing that they had a special relationship with the defendant in which high trust normally exists

32 / 50

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

The parties were friends rather than blood relatives

One party does the relevant work professionally

The parties are estranged

The agreement was a significant undertaking for one or both parties

They had a written or signed agreement

There was an unconnected third-party to the agreement

The agreement contains a binding in honour clause

33 / 50

The parties agree to a contract which makes provision for what will happen if a particular event happens. That event happens, and makes the contract impossible to perform. Does the defence of frustration apply?

34 / 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?

No

Only if there is no applicable remedy in restitution

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

Yes

35 / 50

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

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

The relative culpability of the parties

Whether the evidence was acquired illegally

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

The remedy the claimant is seeking

36 / 50

Joanie has established that a neighbour of hers, Richard, pressured her into selling her house to him. To establish undue influence, what does she need to do to show that the influence was undue?

That the transaction calls for an explanation as not obviously normal or an act of independent judgement

Nothing, the burden of proof has shifted to Richard

That Richard acted unfairly or improperly when influencing her

37 / 50

David offers to sell Mary a house, representing that it has a conservatory. Mary relies on this representation when deciding to buy the house. Prior to the sale, there is a fire, and the conservatory burns down. David does not tell Mary. Can Mary rely on the defence of misrepresentation?

38 / 50

Julie is applying for an overdraft on a joint account controlled by herself and her husband Johan at ABC Bank. Her husband Johan offers to act as surety. The bank is unaware of the fact that Johan has been unduly influenced by Julie, but knows that the two are married. The overdraft is granted. Does the bank have constructive notice of the undue influence?

39 / 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?

40 / 50

What two conditions must be met before a transaction is void for unilateral mistake?

The innocent party is mistaken as to any term

The innocent party is mistaken as to a vital term

The other party knew, or ought reasonably to have known, of the mistake

It would be unconscionable for the contract to stand

The other party subjectively knew of the mistake

41 / 50

What three elements must an innocent party show to establish the defence of economic duress?

But for the other party's actions, the innocent party would not have entered into the contract

The innocent party's will was completely overborne by the other party's actions

The innocent party had no practical choice but to submit

The other party subjected him to illegitimate pressure

The innocent party had no legal choice but to submit

The other party's actions were the sole cause of the innocent party entering into the contract

42 / 50

When is the hypothetical fee measure of damages available in contract?

Where the defendant has breached a proprietary or quasi-proprietary right

Where the market difference and cost of cure measures are unavailable

Where the defendant has profited from the breach

Where the market difference measure would grant no damages

43 / 50

Annabelle tells the swim team she is coaching that she will give £500 to the first of them that swims the English Channel. Ricardo swims the English Channel the next day, and then calls Annabelle asking for the money. Is Annabelle obliged to pay him?

44 / 50

Pierre agrees to buy a priceless painting from Sophie to display in his house, for several million pounds. He does not intend to pay. Sophie is now saying that she will refuse to hand over the painting. Can Pierre obtain an order for specific performance?

45 / 50

Which three factors indicate that a court should not imply a term in fact?

A reasonable person would not think the term was a fair, just or equitable one to include

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

There are strong policy reasons for not including the term

What the term should be is unclear

There is precedent indicating that the term should not be implied

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

46 / 50

Can the innocent party prove that a misrepresentation caused them to enter the contract if they used their own resources to verify whether the statement was true?

47 / 50

Dennis owes Maureen £1000. He asks her if she will discharge the debt if he pays her £500. Maureen agrees, because she needs the money to avoid being liable to a third-party and therefore thinks the arrangement is practically beneficial. Has Dennis provided consideration for Maureen's promise to accept the lesser amount?

No

Yes

The law is unclear

48 / 50

What is the default measure of damages in contract?

Reliance loss

The market difference measure

Hypothetical fee loss

The cost of cure

Consumer surplus

49 / 50

When can a claimant obtain a consumer surplus award of damages?

Whenever they contract as a consumer with a business and the contract is breached

Where they suffer no economic loss and the cost of cure measure is unavailable

Where the claimant has suffered emotional loss or distress

Where the defendant has breached a proprietary or quasi-proprietary right

Where the defendant has profited from the breach

50 / 50

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

All reasonably relevant terms have been agreed

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

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

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

There must be clear evidence of intention to be legally bound

Your score is

CONTRACT LAW

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