CONTRACT LAW

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

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

Any other motivations the claimant has for agreeing to the contract

The reasonableness of any alternatives available

Whether the defendant was acting in good or bad faith

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

The harm any alternatives would cause

2 / 50

Complete this sentence: The defence of duress to the person renders the contract...

Void ab initio

Voidable

Terminated

3 / 50

When will the breach of an innominate term entitle the innocent party to terminate the contract?

If the term is fundamental to the contract

If it appears that the parties intended breach of that term to result in termination

If the breach is significant and substantial

If the breach is so serious that it substantially deprives the innocent party of the contract’s whole benefit

4 / 50

If the written contract contains a 'no oral variation' clause, in what circumstances can the contract be altered by oral statements?

Never

If consideration is provided for the oral variation

Always

If it would cause considerable injustice otherwise

5 / 50

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

Yes, in all cases

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

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

6 / 50

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

Voidable

Terminated

Void ab initio

7 / 50

Does promissory estoppel permanently extinguish the claimant's rights?

No, it merely suspends them pending reasonable notice from the claimant

Yes, in all cases

No, it merely suspends them pending reasonable notice unless the defendant cannot return to his original position or revocation is inequitable

8 / 50

What is the default measure of damages in contract?

Consumer surplus

Hypothetical fee loss

The market difference measure

Reliance loss

The cost of cure

9 / 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 can reasonably be supposed to have been in the parties' contemplation when contracting

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

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

The loss is not unusual

10 / 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

11 / 50

What are the 'trio of considerations' when establishing the defence of illegality?

The underlying purpose of the law broken

Any policy or legal considerations made less effective by denying the claim

The proportionality of denying the claim

The extent to which the claimant must rely on illegal activity to establish the claim

The remedy which the claimant is asking for

Whether the illegality relates to establishing the claim or a defence

12 / 50

What are the two requirements of the defence of misrepresentation?

The claimant made his own checks to determine if the statement was true

The other party made a false statement of fact or law

But for the statement, the innocent party would not have entered into the contract

The other party made a false statement of fact, opinion or law

The other party made a false statement of fact

13 / 50

Rod advertises on a website saying he is looking to pay someone to look after his hamster for the weekend. Rosie responds, asking if they can meet up to negotiate terms. The two meet up and reach a written agreement, but the document states that it is 'subject to contract'. Is this agreement a valid contract?

14 / 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?

15 / 50

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

No, unless the contract was made for their benefit

Yes, in all cases

Yes, but only in relation to defences

16 / 50

When are damages available for innocent misrepresentation?

In lieu of rescission

Where the innocent party suffers property damage

Never

In all cases

17 / 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 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

18 / 50

For the purposes of the defence of economic duress, can a lawful threat be illegitimate?

19 / 50

Kefka hires Lenne as an employee to help manage her business. The employment contract includes a clause stating that any breach of contract claim against Kefka may not include a claim for an injunction. Is this clause subject to the requirement of reasonableness under the Unfair Contract Clause Act 1977?

No, because Lenne is an employee, not a consumer

Yes, because it is an exclusion clause

No, because it is not an exclusion or limitation clause

Yes, because it is a limitation clause

20 / 50

How can an offeror validly withdraw their offer?

By communicating the withdrawal directly to the offeree

By forming the intention to withdraw the offer

By communicating the withdrawal to the offeree in writing

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

21 / 50

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

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

Where the claimant is unlikely to win the case

Where the obligation or wrong involves the use of land

If the claimant acted inequitably

Where granting the injunction would amount to indirect specific performance

If the claimant acquiesced in the wrong

22 / 50

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

23 / 50

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

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

There is precedent indicating that the term should not be implied

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

The term is not a fair, just or reasonable 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

24 / 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?

25 / 50

Hannah is applying for a loan for the family business. Her girlfriend Celestine tells the bank that she will act as surety for the loan. The money is to be advanced to a company which Hannah and Celestine hold joint shares in. The bank is aware that Celestine is Hannah's girlfriend and that she has shares in the company, but they are not aware that Hannah has unduly influenced Celestine. They grant the loan. Can Celestine rely on the defence of undue influence against the bank?

Yes, because they are not entitled to assume Celestine has a role in the business

No, because the bank has no actual knowledge of the undue influence

Yes, because they should have investigated further the relationship between the two women

No, because the money is being advanced for Celestine's interests as well as Hannah's

No, because joint shareholders are liable for company debts

26 / 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?

27 / 50

When the courts imply a term in law, they are seeking to give effect to the parties' intentions. True or false?

28 / 50

Which four of the following scenarios normally involve an invitation to treat and not an offer?

Adverts and catalogues

Tenders received in response to a tender request

Shop displays

Auctioneers seeking bids in a reserved auction

Responses to requests for information or clarification

Auctioneers seeking bids in a without reserve auction

29 / 50

If the innocent party terminates the contract in response to a breach, this renders the contract void. True or false?

30 / 50

Kefka hires Lenne as an employee to help manage her business. The employment contract includes a clause stating that any breach of contract claim against Kefka may not make use of any confidential information acquired in the course of Lenne's employment as evidence. Is this clause subject to the requirement of reasonableness under the Unfair Contract Clause Act 1977?

Yes, because it is a limitation clause

No, because Lenne is an employee, not a consumer

Yes, because it is an exclusion clause

No, because it is not an exclusion or limitation clause

31 / 50

When are damages in deceit available for a misrepresentation?

Where the representation is fraudulent

Where the representation is fraudulent or innocent

Where the representation is negligent

Where the representation is negligent or innocent

Where the representation is fraudulent or negligent

32 / 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?

The law is not clear

Yes

33 / 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?

34 / 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?

35 / 50

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

The promise was extracted by lies

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

The defendant has not suffered any detriment

The defendant has a counter-claim against the claimant

The defendant is now able to pay any sums owed

The promise was obtained by abusing the defendant's position

36 / 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 communicates assent to the term to the promissor

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

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

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

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

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

37 / 50

Frederick is Manuel's employee. One day, Frederick is told by Manuel that he needs him to take on some work which goes beyond his employment duties. Frederick is reluctant, but Manuel tells him that if he does it, Manuel will pay Frederick double. Frederick accepts. Has Frederick provided consideration for the extra payment?

38 / 50

If the literal wording of an express term does not make commercial sense, the courts will intervene to make it more commercially efficient. True or false?

39 / 50

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

Terminated

Voidable

Void ab initio

40 / 50

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

If it relates to an objectively central part of the contract

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 price or payment

41 / 50

What is the doctrine of contra proferentem?

Ambiguous exclusion and limitation clauses are invalid against consumers

Exclusion and limitation clauses should not be implied into contracts with 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

42 / 50

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

Void ab initio

Voidable

Terminated

43 / 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?

44 / 50

When should the doctrine of contra proferentem apply?

Only in cases involving negligence

In all cases

Only in business-to-consumer contract cases

Only in cases involving fundamental breach

Only as a last resort

Only in business-to-business contract cases

45 / 50

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

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

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

46 / 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?

Only if the refusal to terminate is unreasonable

Yes

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

No, unless the consequences of the breach are relatively minor

47 / 50

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

Specific performance is not available in contract cases

In all cases

Where damages would be an inadequate remedy

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

Only in land contract cases

48 / 50

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

49 / 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

50 / 50

If a contract is void ab initio, can either party rely on its terms?

Both parties can rely on it prior to the date the innocent party voided it

Yes, but only the innocent party

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

Your score is

Contract Mind Maps

Contract Mind-Maps at the IPSA LOQUITUR Store

If you are a visual learner, these free printable mind-maps are a great way of learning and remembering the key principles of contract. They are available with or without cases. If you want them on a poster in large sizes, you can also purchase these online at the official Ipsa Loquitur Zazzle store.

Contract Mind Maps

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