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

When will the courts imply a term into a contract in fact? (Two answers)

Where it is fair, just and equitable to include the term

If an officious bystander would think it obvious that the parties would have agreed to the term if asked

If an officious bystander would think that the term was an obviously fair one to include

Where the term is necessary for a contract of a defined type

If the term is necessary to give the contract the business efficacy intended

2 / 50

If a party to a contract makes objectively clear that they intend to breach the contract, when does the innocent party gain the right to a remedy?

When the breach occurs

Immediately

Once the contract has been terminated or damages incurred

3 / 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?

Yes, because exclusion clauses are not operative against third parties

Only if the exclusion clause satisfies the requirement of reasonableness

No, because the exclusion clause is operative

4 / 50

Shira is seriously injured as a result of Quen's negligence. She tells them that if they give her their car, she will not sue. Quen agrees. Have both parties provided consideration?

Yes

No

5 / 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

6 / 50

Complete this sentence: Damages are assessed according to the circumstances existing...

At the time of the breach

At the time litigation is initiated

At the time litigation is initiated, unless this would be unjust

At the time of the breach, unless this would be unjust

7 / 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)

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

Any defence not expressly excluded by the contract

Any defence the contract provides they may rely on

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

9 / 50

Phil makes a contract with Ingrid for his old shed to be torn down in exchange for £200. His next-door neighbour Andrew, who thinks the shed is an eye-sore, says he will pay Ingrid an extra £100 for taking down Phil's shed. Ingrid accepts and takes down the shed. Has Ingrid provided consideration for Andrew's promise?

The law is unclear

Yes

No

10 / 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?

11 / 50

What three elements must an innocent party show to establish the defence of economic duress?

The innocent party had no legal choice but to submit

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

12 / 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?

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

What are the three requirements of frustration?

A frustrating event made performance impossible

The frustrating event preceded the formation of the contract

The frustrating event was not foreseeable

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

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

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

15 / 50

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

Void ab initio

Voidable

Terminated

16 / 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?

Yes, because the man lied about his identity

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

No, because the parties contracted at a distance

Yes, because the parties contracted at a distance

17 / 50

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

Where the offeree rejects it

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)

Where a specific or reasonable amount of time passes without acceptance

Where the offeree acts unconscionably in relation to the offer

Where the offeror dies (any contract)

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

The postal rule applies to any communications of assent to a contract by third parties under the Contract (Rights of Third Parties) Act 1999. True or false?

20 / 50

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

Void ab initio

Terminated

Voidable

21 / 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?

22 / 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

Nothing, the burden of proof has shifted to Richard

That Richard acted unfairly or improperly when influencing her

23 / 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

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

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

24 / 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

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

The market difference measure would leave them with no damages

It is reasonable to cure the defective performance

They intend to cure the defective performance

25 / 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?

No

Yes

Only if the refusal to terminate is unreasonable

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

No, unless the consequences of the breach are relatively minor

26 / 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 back. Smith asks Anderson to sign the back of the receipt and ticket, and Anderson does so without reading either document or noticing the exclusion clause. Is the exclusion clause part of the contract?

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

No, because receipts and tickets are not usually contractual documents

Yes, because Anderson had the opportunity to read the exclusion clause before contracting

No, because Anderson did not read the exclusion clause

Yes, because Anderson signed the documents

27 / 50

In what circumstances will the original parties no longer need to acquire the consent of the third party who has a right to sue under the Contract (Rights of Third Parties) Act 1999 to vary or terminate the contract?

Where the parties have a legitimate interest in variation or rescission

Where the third party is incarcerated

Where the third party cannot reasonably be found

Where the third party is incapable

Where the contract provides for this

Where a defence renders the contract void ab initio

28 / 50

Jubedul lets his office know that he is selling his pet cat Bianca for £50, and that if anyone would like to buy her they should let him know. Liz, his co-worker, immediately calls his work phone and leaves a message on his answering machine saying she will buy the cat. Jubedul never listens to the message. An hour later, Micah tells Jubedul in person that she will buy the cat. Who has validly accepted Jubedul's offer to buy Bianca?

Liz

Neither

Both

Micah

29 / 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?

30 / 50

The parties have reached an agreement, but have not agreed on an important term such as the price. Is the contract void for uncertainty?

Yes

No

Yes, unless the parties specified an objective, external metric to make the term certain

No, but only if the parties have agreed to agree those terms

31 / 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 the clause purports to exclude liability against a consumer

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 for misrepresentation

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

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

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

34 / 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 is lost in the post and never arrives. Has Tyrone accepted the offer?

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

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

36 / 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?

37 / 50

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

Auctioneers seeking bids in a without reserve auction

Responses to requests for information or clarification

Adverts and catalogues

Shop displays

Tenders received in response to a tender request

Auctioneers seeking bids in a reserved auction

38 / 50

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

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

Where the clause excludes liability for negligence

Where the clause is against public policy

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

39 / 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?

Yes

The law is unclear

No

40 / 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 that they had a special relationship with the defendant in which high trust normally exists

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

41 / 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?

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 parties were negotiating from an equal bargaining position

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

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

Whether the clause fully excludes liability or merely limits it

Whether the innocent party signed the contract

Whether the breach could realistically allow liability for non-negligence

43 / 50

Celestine is an elderly woman whose eye-sight is failing. Her niece, Laura, persuades her to sign a document claiming that it will authorise Laura to remove £50 for Celestine's bank account to enable her to pay Celestine's bills. In reality, it is a contract transferring Celestine's house to Laura. Celestine did not bother to read it as she trusts Laura (who has helped her out with bills before) and her eyesight makes reading very difficult. Can Celestine rely on the defence of non es factum?

44 / 50

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

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

The reasonableness of any alternatives available

Whether the defendant was acting in good or bad faith

Any other motivations the claimant has for agreeing to the contract

45 / 50

What is the default measure of damages in contract?

Reliance loss

The market difference measure

Consumer surplus

Hypothetical fee loss

The cost of cure

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

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

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

None

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

Those specifying the subject matter or price of the contract

48 / 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?

49 / 50

Which two of the following factors are relevant to whether a statement is an offer?

How equivocal the statement is

Whether the parties have contracted before

The tone and context of the conversation

Whether the statement maker intends to make an offer

Whether the other party perceives that an offer has been made

50 / 50

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

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CONTRACT LAW

Formation

Terms

Defences

Termination

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