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

Joanie has established a presumption that her lawyer, Richard, influenced her when she sold her house to him. To establish undue influence, what does she need to do to show that the influence was undue?

That Richard acted unfairly or improperly when influencing her

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

2 / 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?

3 / 50

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

There is precedent indicating that the term should not be implied

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

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

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

What the term should be is unclear

There are strong policy reasons for not including the term

4 / 50

What are the elements for determining whether a mandatory injunction should be granted? (Four answers)

Has the claimant suffered pecuniary loss?

Does the risk of injustice to the claimant if the injunction is refused outweigh the risk of injustice to the defendant if the injunction is granted?

Where does the balance of convenience lie?

Is there high degree of assurance that the claimant will succeed at trial or has the claimant already succeeded?

Are damages adequate to compensate either party?

Is there a serious issue to be tried or has the claimant already succeeded at trial?

5 / 50

Sophie hires Anne to install a storm drainage system in her garden. Anne's work is defective, meaning that it does not drain water properly. That summer, an unexpected storm hits and causes considerable water damage to Sophie's garden. The storm was not forecast, and is described in the media as a 'freak' occurrence. Anne argues that the storm was an unforeseeable act of nature, meaning that her breach did not cause Sophie's loss. Is Anne correct?

The law is not clear

No

Yes

6 / 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?

7 / 50

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

8 / 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?

9 / 50

Kayleigh offers to sell Tom a crate of tomatoes. She asks him to respond by telephone if he accepts. Tom sends Kayleigh a letter accepting the tomatoes. Is this a valid acceptance?

10 / 50

When can an offer be revoked?

At any time

An offer cannot be revoked

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

11 / 50

A court judges that only some aspects of an exclusion clause are unreasonable under the Unfair Contract Terms Act 1977. Is it possible to sever those elements so that the rest of the clause remains valid?

Yes, but only if the unreasonable parts serve an independent purpose

Yes, in all cases

No, the whole clause is void

No, unless the unreasonable elements are not relevant to the instant case

12 / 50

Darrel makes a contract with Pierre, agreeing that he will tend to Pierre's garden while Pierre is away. Instead of performing, Darrel goes on holiday. During this time, there is a freak storm which floods Pierre's garden and causes a lot of damage. Can Pierre obtain damages from Darrel for the damage to his garden?

No

Yes

The law is not clear

13 / 50

When are damages considered inadequate for the purposes of obtaining specific performance as a remedy? (Two answers)

The claimant will suffer intrinsically incalculable harm from non-performance

The defendant does not have the funds to pay full compensation

The goods can only be obtained at a great expense or difficulty

The goods are unique or have no market substitute

A limitation clause prevents the claimant from obtaining damages

14 / 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?

No

The law is unclear

Yes

15 / 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

Yes, but only the innocent party

No

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

16 / 50

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

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

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

Never

Always

17 / 50

How can an offeror validly withdraw their offer?

By forming the intention to withdraw the offer

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

By communicating the withdrawal to the offeree in writing

By communicating the withdrawal directly to the offeree

18 / 50

For the purposes of unilateral mistake, when is a term 'vital' to the contract?

If it relates to price or payment

If it relates to something one party subjectively sees as central or important

If it relates to something both parties subjectively see as central or important

If it relates to an objectively central part of the contract

19 / 50

What is the doctrine of contra proferentem?

Ambiguous exclusion and limitation clauses are invalid against consumers

Exclusion and limitation clauses should be interpreted not to cover negligence, where possible

Ambiguous exclusion and limitation clauses should be interpreted against the party seeking to rely on them

Ambiguous exclusion and limitation clauses should be interpreted in the manner most favourable to consumers

Exclusion and limitation clauses should not be implied into contracts with consumers

20 / 50

For the purposes of the defence of duress, what factors are relevant to whether the innocent party has a practical choice? (Three answers)

The reasonableness of any alternatives available

The harm any alternatives would cause

Whether the defendant was acting in good or bad faith

Any other motivations the claimant has for agreeing to the contract

Anything the other party knew or foresaw would hamper the innocent party's ability to perceive or pursue an alternative

21 / 50

Clarence offers to sell Pam a table and chairs set for $300. He adds that if Pam does not respond to him within the week, he will assume that she has accepted. Pam does not respond within the week, nor does she positively indicate acceptance in any other way. Has Pam accepted the offer?

22 / 50

In what four circumstances is an offer terminated without the offeror having to withdraw it?

Where the offeree acts unconscionably in relation to the offer

Where the offeree rejects it

Where a specific or reasonable amount of time passes without acceptance

Where the offeror dies (any contract)

Where the same offer is made to a third-party where that offer is incompatible with the original offer being accepted

Where the offeree makes a counter-offer

Where the offeror dies (personal performance contracts only)

23 / 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 destroyed. Can the contract be voided?

24 / 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 the contract is frustrated

Where one of the parties entered into the contract by mistake

Where both parties have fully performed

Where one of the parties entered into the contract under duress

25 / 50

Where a third party has a claim under the Contract (Rights of Third Parties) Act 1999, can a party to the contract sue for damages incurred by the third party?

No, unless the third party consents

Yes

No

26 / 50

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

Where the market difference measure would grant no damages

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

Where the defendant has profited from the breach

Where the market difference and cost of cure measures are unavailable

27 / 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?

Nothing, the burden of proof has shifted to Richard

That Richard acted unfairly or improperly when influencing her

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

28 / 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 the parties appear to have waived the 'subject to contract' stipulation

Only if there is no applicable remedy in restitution

No

Yes

29 / 50

When are damages available for innocent misrepresentation?

Where the innocent party suffers property damage

Never

In all cases

In lieu of rescission

30 / 50

Stephen asks Jameel to help him find a venue for his up-coming book signing. Jameel finds the perfect place, and out of gratitude Stephen offers to give him £100 as a reward. He later changes his mind. Is Stephen bound to pay the money?

31 / 50

Can the innocent party prove that a misrepresentation caused them to enter the contract if they had the opportunity to verify the statement, but did not?

32 / 50

Xavier is a busy taxi driver who purchases a new car from Dodgy Dealers Inc. He signs their standard term car-purchase contract without reading it, not realising that it contains an onerous clause requiring him to pay a penalty fee if he gets the car serviced by anyone else within the first year. Can Xavier rely on the defence of non es factum to get out of the contract?

No

The law is not clear

Yes

33 / 50

What factors indicate that an oral statement is a term of the contract? (Three answers)

The fact that the other party's own checks seemed to affirm the statement

The statement-maker indicated that the other party could rely on it

The superior knowledge of the statement-maker

The objective importance of the statement to the other party

The parties' subjective intention

The subjective importance of the statement to the other party

34 / 50

Marty purchases a package holiday from his friend Emmett. Emmett states that the contract will be agreed on his standard terms, and hands Marty a copy of these terms for him to read. On the front page, in large font and bold red letters, is an exclusion clause. Marty pretends to read it, but because he is illiterate, he does not understand any of it. Emmett does not know Marty is illiterate. Marty agrees to contract on the those terms. Has Emmett taken reasonable steps to give notice to Marty?

35 / 50

What is the default measure of damages in contract?

Hypothetical fee loss

Consumer surplus

The market difference measure

The cost of cure

Reliance loss

36 / 50

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

37 / 50

Bob offers to sell a wedding dress to Arthur for $400. Arthur says he is willing to buy the dress for $400, but only if Bob also includes a veil. Has Arthur accepted Bob's offer?

Yes

Yes, but the contract is only for the dress

No

38 / 50

Complete this sentence: The defence of undue influence renders the contract...

Terminated

Voidable

Void ab initio

39 / 50

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

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

No

Yes, in all cases

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

40 / 50

Kayleigh offers to sell Tom a crate of tomatoes. She asks him to respond by letter with his signature if he accepts. Tom sends Kayleigh a letter accepting the tomatoes, but does not sign it. Is this a valid acceptance?

41 / 50

Alfred contracts with Zin to help deal with the communications side of his business. The contract between them states that Zin is not liable for damages resulting from her handling of messages 'howsoever caused'. Will the courts interpret this wording as wide enough to potentially cover negligence?

Yes

No

The law is not clear

42 / 50

When is specific performance available as a remedy to a breach of contract?

Specific performance is not available in contract cases

Where damages would be an inadequate remedy

Where the consequences of the breach are or would be very serious

In all cases

Only in land contract cases

43 / 50

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

44 / 50

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

Terminated

Voidable

Void ab initio

45 / 50

Marcus has shown that he reposed a large amount of trust in his partner, Adrian, when it comes to financial affairs. He also shows that his decision to transfer his inheritance to Adrian is a transaction which calls for explanation. To avoid the transfer being affected by the defence of undue influence, what must Adrian do to show that the influence was not undue?

That Marcus would have consented to the transfer even if he had been free from influence

That Adrian did not act improperly or unfairly in influencing Marcus

That Marcus was able to make an independent, fully-informed and voluntary decision to enter into the transfer

46 / 50

In which three scenarios can an exclusion or limitation clause be incorporated into a contract at common law?

Where the party has signed the contract containing the clause

Where the clause is included in an unsigned, written contract

Where reasonable steps were taken to give the other party notice of the clause

Where there has been a consistent course of dealing on terms including the clause

Where the clause is a reasonable one to include in the contract

Where the party relying on the clause told the other party to read the contract

Where the party has signed and read the contract containing the clause

47 / 50

Stephen is struggling to find a venue for his up-coming book signing. Jameel decides to help him on his own initiative. Jameel finds the perfect place, and out of gratitude Stephen offers to give him £100 as a reward. He later changes his mind. Is Stephen bound to pay the money?

48 / 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?

No

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

49 / 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?

50 / 50

What must a third-party bank do to rid themselves of constructive notice of undue influence?

Advise the surety to seek advise from a competent lawyer unconnected to the debtor

Refuse to participate in the transaction

Properly advise the surety on the nature and consequences of the transaction

Confirm in writing that the surety is advised by a competent lawyer unconnected to the debtor

Your score is

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