REVISION TEST

CONTRACT LAW

1. Read the definitions below and write the corresponding sections of a contract.

1. The part of a contract that sets out the most important things that the parties have agreed
to do under the contract. _______________________________________________________
2. The part of a contract that gives the background information to the contract. It often states
why the parties are entering into an agreement. ____________________________________
3. The part of the contract that gives a precise explanation of how the parties will interpret
certain words used in the contract. _______________________________________________
4. The part that refers when and where the obligations will be carried out. _______________
____________________________________________________________________________
5. The part of the contract containing the names of the people or companies who are entering
into the contract.
_______________________________________________________________

2. What are the main elements and defences of a contract?

_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________

3. Types of contract clauses.

a) Complete the sentences.
1. An ________________________ clause is a clause in a contract requiring the obligor to pay
all or a part of a payable amount sooner than as agreed.
2. A _______________________ clause is a clause expressing the cause, motive, price or
impelling motive which induces one party to enter into an agreement.
3. A ________________________ clause lists amount predetermined by the parties as the
total amount of compensation a non-breaching party should receive if the other party
breaches a part of the contract.
4. A _______________________ clause sets forth when and under which circumstances the
contract may be terminated.
5. A _______________________ clause is designed to protect against failures to perform
contractual obligations caused by unavoidable events beyond the party's control, such as
natural disasters or wars.

1
b) What other clauses can we find in a contract? Indicate five.
_____________________________________________________________________________
_____________________________________________________________________________

4. Complete the sentences using the words in the box.

breach counter-offer damages consideration obligations oral contract

terms

1. A contract occurs when an offer is accepted with the exchange of _______________.

2. A new offer made by one party to another party is called a _______________.
3. The price and the subject matter of a contract are the essential _______________ of a
contract.
4. A contract which is not in written form but has been expressed in spoken words is called
an_______________ contract.
5. Under a contract, a party has_______________ (that is, certain things, it has to do).
6. When a party does not do what it has promised to do under a contract, it can be sued for
_______________ of contract.
7. A court can award _______________ to the non-breaching party.

5. Types of damages. Read the definitions below and write the correct types of damages.
1. __________________________ compensation agreed in the contract that must be paid
when the contract is breached.
2. __________________________ compensation for a loss that is the natural and logical result
of the breach of contract.
3. __________________________ compensation for the loss of benefits that a person would
have received had the contract been performed.
4. __________________________ compensation which is imposed by the court to deter
malicious conduct in the future.
5. __________________________ compensation for losses which are as result of special facts
and circumstances that were foreseeable by the breaching party at the time of contract
6.__________________________ compensation determined by the amount of benefit unjustly
received by the breaching party.

2
7. __________________________ compensation to reimburse the non-breaching party for
expenses incurred in the reasonable belief that the contract will be performed.