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

A contract between a business and a consumer contains a contract term which the courts have judged to be unfair. Who can rely on the clause?

The consumer

Neither party

Both parties

The trader

2 / 50

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

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

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

3 / 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

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

If it would cause considerable injustice otherwise

Always

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

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

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

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

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

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

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

7 / 50

What are the two requirements of the defence of misrepresentation?

The other party made a false statement of fact

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

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

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

The other party made a false statement of fact or law

8 / 50

Where a claim is made by a third party under the Contract (Rights of Third Parties) Act 1999, which three defences can the defendant rely on?

Any defence which relates to damages rather than equitable relief

Any defence the contract provides they may rely on

Any defence they have against the other party to the contract even if it is unconnected to the particular contract

Any defence they have against the other party to the contract in connection to the contract which is relevant to the term relied on

Any defence not expressly excluded by the contract

Any defence they would have had directly against the third party if the third party had been a contract party

9 / 50

What is the parol evidence rule?

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

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

10 / 50

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

11 / 50

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

Where the clause excludes liability for negligence

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 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

12 / 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

13 / 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?

The law is not clear

Yes

14 / 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?

15 / 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 directly to the offeree

By communicating the withdrawal to the offeree in writing

By forming the intention to withdraw the offer

16 / 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

The law is not clear

17 / 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?

Yes

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

Only if the refusal to terminate is unreasonable

No, unless the consequences of the breach are relatively minor

18 / 50

When establishing the defence of undue influence, how does the claimant demonstrate 'Type 2A' presumed 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

19 / 50

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

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

Where the misrepresentation was negligent

Where the misrepresentation has not caused the innocent party any loss

Where the innocent party has only suffered pure economic loss

Where the misrepresentation is innocent

20 / 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, unless the third party consents

21 / 50

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

A limitation clause prevents the claimant from obtaining damages

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

The claimant will suffer intrinsically incalculable harm from non-performance

The goods are unique or have no market substitute

The defendant does not have the funds to pay full compensation

22 / 50

Dennis owes Maureen £1000, and is obligated to pay by the 1st of June. He asks her if she will discharge the debt for £600, if he pays by the 1st of May. Maureen agrees. Has Dennis provided consideration for Maureen's promise to discharge the debt?

The law is unclear

Yes

23 / 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, but the contract is only for the dress

Yes

24 / 50

Micah contracts with John for a package holiday. In breach of contract, John fails to make the appropriate reservations, leaving Micah stranded abroad without a hotel for several days. Micah suffers a severe stress reaction as a result. Can Micah recover damages for her emotional distress?

25 / 50

When establishing the defence of undue influence, how does the claimant demonstrate 'Type 2B' presumed influence?

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

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

26 / 50

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

27 / 50

Fatima is looking to sell an antique doll, which is worth £3000. Paul offers to buy it for £5. Fatima accepts, as she is in a hurry to get rid of the doll as it spooks her. Have both parties provided consideration?

No, because Paul's consideration is inadequate

Yes

The law is unclear

28 / 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 defendant has substantially performed by completing the contract's main purpose

Only if the breach is not substantial

29 / 50

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

30 / 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

Within a reasonable period of entering the contract

Before the contract is entered into

When the other party asks

31 / 50

David induces Mary to enter into a contract to buy a car by promising that he will service the car before he gives it to her. He has no intention of doing so. Is this an actionable misrepresentation?

32 / 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?

Where the surety has not received legal advice

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

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

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

33 / 50

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

34 / 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?

Yes, because the man lied about his identity

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

No, because the parties contracted at a distance

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

35 / 50

When is an existing contract discharged? (Three answers)

Where the parties agree to discharge the contract

Where the contract is frustrated

Where the parties agree to discharge the contract and provide consideration

Where one of the parties entered into the contract under duress

Where both parties have fully performed

Where one of the parties entered into the contract by mistake

36 / 50

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

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

If the term is fundamental to the contract

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

37 / 50

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

The innocent party was given an inducement to accept the term

Performance is high-risk to the breaching party

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

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

The likelihood of breach was low

The breaching party was not at fault for the breach

Insurance against the loss was reasonably available

38 / 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 begins swimming the English Channel the next day, but before he can finish Annabelle changes her mind and says she will not pay. Has Annabelle revoked her unilateral offer?

39 / 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?

40 / 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?

41 / 50

John is a Government official who is under a duty to give a license to anyone who fills out the proper application form. Paul fills in the form and offers to give John £300 if he gets a license. John agrees. Have both parties provided consideration?

42 / 50

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

Voidable

Void ab initio

Terminated

43 / 50

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

Does the balance of convenience favour the grant?

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?

Are damages adequate to compensate either party?

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

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

44 / 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?

Yes, because it is a limitation clause

No, because it is not an exclusion or limitation clause

No, because Lenne is an employee, not a consumer

Yes, because it is an exclusion clause

45 / 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 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, for example, 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

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

Terminated

Void ab initio

Voidable

47 / 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?

48 / 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

49 / 50

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

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?

Are damages adequate to compensate either party?

Has the claimant suffered pecuniary loss?

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

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

50 / 50

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

Confirm in writing that the surety is advised by 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

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

Your score is

Contract Mind Maps

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