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

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?

2 / 50

What kinds of clauses cannot be void for unfairness under the Consumer Rights Act 2015?

None

Those not excluding or limiting liability for breach of contract or negligence

Those specifically brought to the attention of the consumer prior to contracting

Those specifying the subject matter or price of the contract

3 / 50

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

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

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

4 / 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 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 or oral contract

5 / 50

What are the three requirements of frustration?

A frustrating event made performance impossible

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

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

The frustrating event was not foreseeable

The frustrating event preceded the formation of the contract

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

6 / 50

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

Where granting the injunction would amount to indirect specific performance

If the claimant acquiesced in the wrong

If the claimant acted inequitably

Where the obligation or wrong involves the use of land

Where the claimant is unlikely to win the case

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

7 / 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

No

Yes

8 / 50

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

Void ab initio

Terminated

Voidable

9 / 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?

10 / 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?

11 / 50

How can an offeror validly withdraw their offer?

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

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

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

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

There must be clear evidence of intention to be legally bound

13 / 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?

Yes

The law is unclear

No

14 / 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 clause fully excludes liability or merely limits it

Whether the breach could realistically allow liability for non-negligence

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

Whether the parties were negotiating from an equal bargaining position

15 / 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?

The law is unclear

No

Yes

16 / 50

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

The goods are unique or have no market substitute

The claimant will suffer intrinsically incalculable harm from non-performance

A limitation clause prevents the claimant from obtaining damages

The defendant does not have the funds to pay full compensation

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

17 / 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 receipt is a contractual document

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

Yes, because the ticket is a contractual document

No, because Anderson did not read the exclusion clause

No, because receipts and tickets are not usually contractual documents

Yes, because Anderson was given notice before contracting

18 / 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?

19 / 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

That Richard acted unfairly or improperly when influencing her

Nothing, the burden of proof has shifted to Richard

20 / 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?

21 / 50

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

Responses to requests for information or clarification

Auctioneers seeking bids in a without reserve auction

Auctioneers seeking bids in a reserved auction

Shop displays

Tenders received in response to a tender request

Adverts and catalogues

22 / 50

What two elements must the claimant show to obtain the cost of cure measure of damages?

The claimant values performance above the market value

It is reasonable to cure the defective performance

The market difference measure would leave them with no damages

The claimant will suffer non-pecuniary loss if the defective performance is not remedied

They intend to cure the defective performance

23 / 50

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

Where the defendant has profited from the breach

Where the market difference measure would grant no damages

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

Where the market difference and cost of cure measures are unavailable

24 / 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?

Yes

No

Potentially

25 / 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?

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

Where the clause purports to exclude liability against a consumer

27 / 50

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

There are strong policy reasons for not including the term

What the term should be is unclear

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

The express terms of the contract appear to cover the situation

A reasonable person in the parties' position would be unaware of the subject matter of the proposed term

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

There is precedent indicating that the term should not be implied

28 / 50

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

29 / 50

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

Are damages adequate to compensate either party?

Where does the balance of convenience lie?

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

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?

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

30 / 50

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

Yes, but only the innocent party

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

No

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

31 / 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?

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

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

Yes, because the man lied about his identity

No, because the parties contracted at a distance

32 / 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?

33 / 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?

34 / 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?

35 / 50

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

36 / 50

In which two scenarios can a person rely on the defence of undue influence against a third-party?

Where the third-party is a lending bank

Where the third-party is also acting for the undue influencer in the transactions

Where the third-party knew of circumstances from which a reasonable person would suspect undue influence

Where the third-party did not take reasonable steps to investigate whether there might be undue influence

Where the third-party has actual knowledge of the undue influence

37 / 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 expressly covering negligence?

No

The law is not clear

Yes

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

That Richard acted unfairly or improperly when influencing her

Nothing, the burden of proof has shifted to Richard

39 / 50

When is an existing contract discharged? (Three answers)

Where the contract is frustrated

Where one of the parties entered into the contract under duress

Where both parties have fully performed

Where the parties agree to discharge the contract and provide consideration

Where the parties agree to discharge the contract

Where one of the parties entered into the contract by mistake

40 / 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 trader

Neither party

Both parties

The consumer

41 / 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?

42 / 50

Jules breaches a condition clause of his contract with Amy. Amy sees that she cannot sue Jules for damages, because there is an exclusion clause in the contract preventing her from doing so. She therefore terminates the contract, relying on the fundamental breach. She argues that since the contract is terminated, the exclusion clause is no longer applicable and she can now sue for damages. Is Amy correct?

43 / 50

Does the postal rule apply to cases where an offeror is seeking to withdraw his offer?

44 / 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?

45 / 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?

46 / 50

Richard offers to sell Michael a book. Richard knows that Michael believes that the book is signed by the author. Richard did nothing to make him believe this, but nor does he correct Michael. Michael relies on his belief that the book is signed when deciding to buy it. Can Michael rely on the defence of misrepresentation?

47 / 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?

The law is unclear

No, because Paul's consideration is inadequate

Yes

48 / 50

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

Void ab initio

Terminated

Voidable

49 / 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 harm any alternatives would cause

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

Any other motivations the claimant has for agreeing to the contract

50 / 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 not expressly excluded by the 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 they would have had directly against the third party if the third party had been a contract party

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

Your score is

CONTRACT LAW

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