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CONTRACT LAW EXAM AND PRACTICE EXAM
QUESTIONS 2025/ 2026 NEWEST ACTUAL EXAM
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+||LATEST EXAM!!!||
Which one of the following statements is false?
Terms can be:
(a) implied by the courts
(b) implied by statute
(c) never be implied because they are only binding if
expressly agreed to by both parties
(d) implied by custom - Answer-C
Which one of the following statements is false?
(a) The general rule is that a person is bound by their
signature.
(b) A person is not bound by their signature if the
contractual terms
were misrepresented.
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(c) Terms can be incorporated by reasonable notice.
(d) Terms cannot be incorporated based on a previous
course of
dealing between the parties - Answer-D
In relation to a claim for the contract price, which one of
the following statements is not true?
1. The claim is not subject to the test of remoteness.
2. The claim is not subject to the mitigation principle.
3. A liquidated damages clause in the contract does not
apply to the claim.
4. The claim arises from a breach of contract by the
defendant.
5. The purpose of the claim is to enforce the defendant's
contractual obligation (the promise to pay). - Answer-A -
The claim arises from a breach of contract by the
defendant
The claim arises when the claimant has performed its
obligations, which give rise to the obligation to make
payment. A breach by the defendant does not cause the
liability to pay the contract price to arise. A claim for the
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contract price is a debt claim and is not subject to
restrictions over recoverable loss in relation to a damages
claim, such as the test of remoteness and mitigation
principles. The amount of the debt is the amount
recoverable. A liquidated damages clause applies only to a
damages claim. The agreed sum under that clause is
recovered as a substitute for the loss suffered by the non-
breaching party-but this is different to a claim for the
contract price in a debt claim.
5. Photo Me! was engaged by Fiona to take the official
photographs during Fiona's birthday celebrations. In
breach of its contractual obligation to deliver Fiona's
portrait photographs taken during her celebrations, Photo
Me! is attempting to resell the photographs to a third party.
Which one of the following most accurately describes the
parties' legal position?
(a) The photographs are unique to Fiona, with no
substitute available, so it is likely that a specific
performance will be awarded.
(b) It is unlikely that Fiona will be awarded specific
performance because it is generally unavailable as a
remedy, but she will be entitled to an account of any profits
made by Photo-Me!
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(c) Fiona's most likely remedy is substantial damages,
awarded according to her lost expectation.
(d) Fiona's most likely remedy is substantial damages,
awarded according to the disappointment and distress she
will have suffered.
(e) Fiona - Answer-A
The most appropriate remedy here is specific
performance. Specific performance may be available
where damages would be inadequate. The most obvious
case, as here, is where substitute performance is
unavailable. Fiona's portrait photographs taken during her
birthday party are unique to her with no substitute
available.
Atif enters a contract to sell 1,000 tons of steel to Kane
and then refuses to proceed with the transaction. Because
there is a worldwide shortage of steel, Kane applies for an
order of specific performance. Which one of the following
most accurately describes the parties' legal position?
(a) Kane can obtain the equitable remedy of specific
performance as of right.
CONTRACT LAW EXAM AND PRACTICE EXAM
QUESTIONS 2025/ 2026 NEWEST ACTUAL EXAM
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+||LATEST EXAM!!!||
Which one of the following statements is false?
Terms can be:
(a) implied by the courts
(b) implied by statute
(c) never be implied because they are only binding if
expressly agreed to by both parties
(d) implied by custom - Answer-C
Which one of the following statements is false?
(a) The general rule is that a person is bound by their
signature.
(b) A person is not bound by their signature if the
contractual terms
were misrepresented.
,2|Page
(c) Terms can be incorporated by reasonable notice.
(d) Terms cannot be incorporated based on a previous
course of
dealing between the parties - Answer-D
In relation to a claim for the contract price, which one of
the following statements is not true?
1. The claim is not subject to the test of remoteness.
2. The claim is not subject to the mitigation principle.
3. A liquidated damages clause in the contract does not
apply to the claim.
4. The claim arises from a breach of contract by the
defendant.
5. The purpose of the claim is to enforce the defendant's
contractual obligation (the promise to pay). - Answer-A -
The claim arises from a breach of contract by the
defendant
The claim arises when the claimant has performed its
obligations, which give rise to the obligation to make
payment. A breach by the defendant does not cause the
liability to pay the contract price to arise. A claim for the
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contract price is a debt claim and is not subject to
restrictions over recoverable loss in relation to a damages
claim, such as the test of remoteness and mitigation
principles. The amount of the debt is the amount
recoverable. A liquidated damages clause applies only to a
damages claim. The agreed sum under that clause is
recovered as a substitute for the loss suffered by the non-
breaching party-but this is different to a claim for the
contract price in a debt claim.
5. Photo Me! was engaged by Fiona to take the official
photographs during Fiona's birthday celebrations. In
breach of its contractual obligation to deliver Fiona's
portrait photographs taken during her celebrations, Photo
Me! is attempting to resell the photographs to a third party.
Which one of the following most accurately describes the
parties' legal position?
(a) The photographs are unique to Fiona, with no
substitute available, so it is likely that a specific
performance will be awarded.
(b) It is unlikely that Fiona will be awarded specific
performance because it is generally unavailable as a
remedy, but she will be entitled to an account of any profits
made by Photo-Me!
, 4|Page
(c) Fiona's most likely remedy is substantial damages,
awarded according to her lost expectation.
(d) Fiona's most likely remedy is substantial damages,
awarded according to the disappointment and distress she
will have suffered.
(e) Fiona - Answer-A
The most appropriate remedy here is specific
performance. Specific performance may be available
where damages would be inadequate. The most obvious
case, as here, is where substitute performance is
unavailable. Fiona's portrait photographs taken during her
birthday party are unique to her with no substitute
available.
Atif enters a contract to sell 1,000 tons of steel to Kane
and then refuses to proceed with the transaction. Because
there is a worldwide shortage of steel, Kane applies for an
order of specific performance. Which one of the following
most accurately describes the parties' legal position?
(a) Kane can obtain the equitable remedy of specific
performance as of right.
