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

Where does the balance of convenience lie?

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?

Has the claimant suffered pecuniary loss?

Are damages adequate to compensate either party?

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?

2 / 50

When is an existing contract discharged? (Three answers)

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

Where the parties agree to discharge the contract

Where the contract is frustrated

Where the parties agree to discharge the contract and provide consideration

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

4 / 50

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

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

The underlying purpose of the law broken

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

Whether the illegality relates to establishing the claim or a defence

The proportionality of denying the claim

The remedy which the claimant is asking for

5 / 50

Pierre agrees to buy a priceless painting from Sophie to display in his house, for several million pounds. He does not intend to pay. Sophie is now saying that she will refuse to hand over the painting. Can Pierre obtain an order for specific performance?

6 / 50

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

7 / 50

For the purposes of the defence of unilateral mistake, when can a term as to the quality of the goods be considered 'vital'?

When a reasonable person would think that quality was important to the contract

Always

When the parties subjectively see that quality as vital to the contract

Never

8 / 50

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

9 / 50

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

Void ab initio

Voidable

Terminated

10 / 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 clause purports to exclude liability against a consumer

Where it purports to exclude for economic loss or property damage caused by negligence

Where the parties have contracted on one party's standard written terms

Where the clause was specifically negotiated

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

Where the innocent party has only suffered pure economic loss

Where the misrepresentation has not caused the innocent party any loss

Where the misrepresentation was negligent

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

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

Yes, but only the innocent party

No

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

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

14 / 50

What is the purpose of general contract damages?

To compensate the claimant and strip the defendant of profits

To compensate the claimant and punish the defendant for wrongdoing

To compensate the claimant

15 / 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

Yes, because the ticket is a contractual document

Yes, because Anderson was given notice before contracting

No, because Anderson did not read the exclusion clause

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

No, because receipts and tickets are not usually contractual documents

16 / 50

What is the doctrine of contra proferentem?

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

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

17 / 50

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

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

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

What the term should be is unclear

There is precedent indicating that the term should not be implied

The express terms of the contract appear to cover the situation

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

There are strong policy reasons for not including the term

18 / 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 swims the English Channel the next day, and then calls Annabelle asking for the money. Is Annabelle obliged to pay him?

19 / 50

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

The parties are unaware that the contract is impossible to perform at the time they enter into the contract

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

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 misrepresented their identity to the other party

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

20 / 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

Yes, because it is an exclusion clause

No, because Lenne is an employee, not a consumer

No, because it is not an exclusion or limitation clause

21 / 50

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

Where the clause excludes liability for negligence

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 is against public policy

22 / 50

What is the default measure of damages in contract?

Consumer surplus

The market difference measure

Reliance loss

Hypothetical fee loss

The cost of cure

23 / 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

24 / 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?

25 / 50

When can an offer be revoked?

At any time

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

An offer cannot be revoked

26 / 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?

27 / 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?

Yes

Only if the parties appear to have waived the 'subject to contract' stipulation

No

Only if there is no applicable remedy in restitution

28 / 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 suffers some detriment as a result of the contract

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

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

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

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 promissor

29 / 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 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

30 / 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

No

Yes

31 / 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

Within a reasonable period of entering the contract

When the other party asks

32 / 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?

Yes

The law is not clear

No

33 / 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?

Yes, because Anderson signed the documents

No, because receipts and tickets are not usually contractual documents

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

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

No, because Anderson did not read the exclusion clause

34 / 50

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

35 / 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 that the term was an obviously fair one to include

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

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

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

36 / 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

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

The reasonableness of any alternatives available

37 / 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?

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

Nothing, the burden of proof has shifted to Richard

That Richard acted unfairly or improperly when influencing her

39 / 50

Under the Contract (Rights of Third Parties) Act 1999, in what two scenarios can a third-party to a contract enforce the terms of that contract?

Where the contract does not expressly or implicitly rule out third party enforcement

Where the contract purports to confer a benefit on them, assuming no evidence of contrary intention

Where the non-enforcement of the contract causes the third party damage

Where the contract expressly says they can

40 / 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?

41 / 50

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

42 / 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?

43 / 50

Arthur contracts for a private car from Celestine, stressing that he needs to arrive before three o'clock. He does not explain the reason why, which is that if he is late he will miss a meeting with an important client and lose a valuable deal. Celestine drives painfully slowly and does not get Arthur to his destination on time. Arthur loses the deal. Can Arthur recover damages for the lost contract?

44 / 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 are unique or have no market substitute

The claimant will suffer intrinsically incalculable harm from non-performance

The defendant does not have the funds to pay full compensation

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

45 / 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?

46 / 50

When are damages in deceit available for a misrepresentation?

Where the representation is negligent

Where the representation is fraudulent

Where the representation is fraudulent or innocent

Where the representation is negligent or innocent

Where the representation is fraudulent or negligent

47 / 50

Kayleigh offers to sell Tom a crate of tomatoes. She asks him to respond by telephone if he accepts. Tom sends Kayleigh a letter accepting the tomatoes. Is this a valid acceptance?

48 / 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?

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

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

49 / 50

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

Void ab initio

Terminated

Voidable

50 / 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?

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

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

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)

Your score is

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