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

What is the default measure of damages in contract?

Hypothetical fee loss

The market difference measure

Consumer surplus

The cost of cure

Reliance loss

2 / 50

When can an offer be revoked?

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

At any time

An offer cannot be revoked

3 / 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?

4 / 50

When is an exclusion or limitation clause unfair under the Consumer Rights Act 2015?

Where the clause is against public policy

Where it was not fair and reasonable to include it in the circumstances the parties knew or ought to have known

Where the clause is contrary to the requirement of good faith and causes a significant imbalance in the parties’ rights and obligations

Where the clause excludes liability for negligence

5 / 50

Erica is a software programmer who was contracted to develop systems for Herbert's business. She begins to have money troubles, and asks Herbert for the extra £100 she needs to complete the project on time. Herbert accepts, because if delivery is late he will be liable to pay damages to a third-party. Has Erica provided consideration for the extra money?

6 / 50

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

Void ab initio

Voidable

Terminated

7 / 50

Kefka and Lenne enter into a business contract for the benefit of Celes, expressly granting her rights to sue for breach under the Contract (Rights of Third Parties) Act 1999. The contract also provides that both Kefka and Lenne can rely on a particular exclusion clause if they are sued for negligence by Celes. Lenne breaches the contract in a way which triggers this exclusion clause. Can Celes succeed in a claim against Lenne?

Only if the exclusion clause satisfies the requirement of reasonableness

Yes, because exclusion clauses are not operative against third parties

No, because the exclusion clause is operative

8 / 50

In what two scenarios are the courts likely to refuse to rescind a contract which has been rendered voidable by misrepresentation?

Where the misrepresentation is innocent

Where the misrepresentation was negligent

Where the innocent party has only suffered pure economic loss

Where the misrepresentation has not caused the innocent party any loss

Where innocent party's real motivation is escaping a bad bargain unrelated to the misrepresentation

9 / 50

Are sums and benefits paid prior to an event which frustrates the contract recoverable?

No

Yes

Yes, but the court can make deductions

10 / 50

What are the three requirements of frustration?

A frustrating event made performance impossible

The frustrating event was not foreseeable

The party seeking to establish frustration must have performed all of their outstanding obligations

The frustrating event is not the fault of the party seeking to establish the defence

A frustrating event made performance unreasonable, unduly onerous or excessively expensive

The frustrating event preceded the formation of the contract

11 / 50

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

Terminated

Void ab initio

Voidable

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

That Adrian did not act improperly or unfairly in influencing Marcus

13 / 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?

14 / 50

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

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

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

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

There must be clear evidence of intention to be legally bound

15 / 50

Maisy enters into a contract over the phone with a man falsely claiming to be her long-lost cousin, John. In reality, Maisy does not have a long-lost cousin named 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 her cousin. 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

Yes, because the parties contracted at a distance

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

16 / 50

When are damages in deceit available for a misrepresentation?

Where the representation is negligent or innocent

Where the representation is fraudulent

Where the representation is fraudulent or negligent

Where the representation is negligent

Where the representation is fraudulent or innocent

17 / 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

Yes

Only if there is no applicable remedy in restitution

No

18 / 50

What are the two requirements of the defence of misrepresentation?

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

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

The other party made a false statement of fact or law

The other party made a false statement of fact

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

19 / 50

When establishing the defence of undue influence, how does the claimant demonstrate the category of presumed influence established in Malik (Deceased) v Shiekh?

By showing that the claimant was vulnerable to or dependent on the defendant because of, for example, mental illness, ill health or age

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

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

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

20 / 50

When should the doctrine of contra proferentem apply?

Only in cases involving negligence

Only in cases involving fundamental breach

In all cases

Only in business-to-consumer contract cases

Only in business-to-business contract cases

Only as a last resort

21 / 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 other party's actions were the sole cause of the innocent party entering 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

22 / 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?

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

No, because the parties contracted face-to-face

23 / 50

Rod advertises on a website saying he is looking to pay someone to look after his hamster for the weekend. Rosie responds, agreeing. The two draw up a written agreement, which includes a clause saying that it is binding in honour only. Is this agreement a valid contract?

24 / 50

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

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

One party has misrepresented their identity to the other party

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

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

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

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

25 / 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

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

No

Yes, in all cases

26 / 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?

27 / 50

What is the purpose of general contract damages?

To compensate the claimant

To compensate the claimant and punish the defendant for wrongdoing

To compensate the claimant and strip the defendant of profits

28 / 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?

29 / 50

A claimant suing for breach of contract can claim both the market difference measure and the cost of cure measure at the same time. True or false?

30 / 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

31 / 50

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

32 / 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?

33 / 50

When will the defence of illegality bar a claim?

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

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

34 / 50

Katie and Andrew enter into a contract which states that Andrew will deliver Thompson apples to Katie. The parties are not aware that there are actually two kinds of Thompson apples - Virginia Thompson apples and Alabama Thompson apples. The two types of apple taste very different and have very different uses. Andrew intends to ship Virginia Thompson apples, while Katie is expecting to receive Alabama Thompson apples. Is the contract void for mutual mistake?

No, because the parties agreed on the core of contract - the delivery of apples

Yes, because the parties have not reached a subjective meeting of minds

Only if it would not be objectively apparent to a reasonable person that the contract referred to a particular type of apple (or permitted either)

35 / 50

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

An increased chance of securing performance

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

36 / 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

37 / 50

How can an offeror validly withdraw their offer?

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

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

38 / 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?

39 / 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?

40 / 50

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

The defendant is now able to pay any sums owed

The promise was extracted by lies

The promise was obtained by abusing the defendant's position

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

The defendant has a counter-claim against the claimant

The defendant has not suffered any detriment

41 / 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?

No

The law is not clear

Yes

42 / 50

What two elements will the courts consider when determining whether an exclusion clause covers negligent breach in cases where the clause does not explicitly mention negligence?

Whether the innocent party signed the contract

Whether the innocent party had been given reasonable notice of the clause

Whether the breach could realistically allow liability for non-negligence

Whether the clause fully excludes liability or merely limits it

Whether the wording of the clause is wide enough to cover negligence

Whether the parties were negotiating from an equal bargaining position

43 / 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

Before the contract is entered into

When the other party asks

Within a reasonable period of entering the contract

44 / 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?

Yes

No

No, unless the third party consents

45 / 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?

46 / 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?

47 / 50

When dealing with the defence of undue influence in a case where a presumption of influence has been raised, can the defendant rebut the presumption?

48 / 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

49 / 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 profited from the breach

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

Where the market difference and cost of cure measures are unavailable

50 / 50

When is an existing contract discharged? (Three answers)

Where one of the parties entered into the contract by mistake

Where the parties agree to discharge the contract and provide consideration

Where both parties have fully performed

Where the parties agree to discharge the contract

Where one of the parties entered into the contract under duress

Where the contract is frustrated

Your score is

CONTRACT LAW

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