SQE1 Contract Law Practice Questions

Contract Law is 14–20% of FLK1 and sits in session 2 from January 2027. Practise original single best answer questions on formation, terms, vitiating factors and remedies, each explained against the rule it tests.

Take the full timed FLK1 mock exam

170 five-option questions in two timed sessions of 85 (2 hours 33 minutes each), in the January 2027 FLK1 format, with a score by subject and an explanation for every answer.

Or try the free contract drill
  • 48 original contract questions with explanations
  • FLK1, session 2
  • SRA blueprint: 14–20% of FLK1
Free sample · Question 1 of 3FLK1 · Contract

Tilly was employed as operations manager by Garnet Hotels Ltd on a fixed two-year contract at £4,000 a month. Garnet wrongfully dismissed her with ten months of the contract left to run. One month after the dismissal, she was offered a comparable post at another hotel at £3,500 a month, starting immediately, which she unreasonably refused. She remained unemployed for the rest of the ten-month period. Ignoring tax and any other deductions, what is the maximum Tilly is likely to recover in damages?

What our contract questions cover

  • Offer and acceptance, consideration, intention to create legal relations, certainty and capacity
  • Privity and the Contracts (Rights of Third Parties) Act 1999
  • Express and implied terms, incorporation, exemption clauses, conditions, warranties and innominate terms
  • Misrepresentation, mistake, unfair terms, duress, undue influence and illegality
  • Termination by performance, breach and frustration; restitution and unjust enrichment
  • Damages, causation, remoteness and mitigation; liquidated damages and penalties; specific performance and injunctions
Line drawing of a signed two-page contract, a fountain pen and two hands shaking

This list is our own summary of the subject, written for practice. The SRA publishes the full Functioning Legal Knowledge list for FLK1 in the SQE1 Assessment Specification.

Drill contract, then sit the full paper

Take the full timed FLK1 mock exam

170 five-option questions in two timed sessions of 85 (2 hours 33 minutes each), in the January 2027 FLK1 format, with a score by subject and an explanation for every answer.

Or try the free contract drill

Rules the questions test most

  1. An offer can be revoked at any time before acceptance, but revocation must be communicated. A postal acceptance is complete when posted, where post is a reasonable means of acceptance.
  2. Consideration must move from the promisee and need not be adequate, but past consideration is no consideration unless the act was done at the promisor’s request in circumstances where payment was expected.
  3. A condition goes to the root of the contract and its breach allows termination; breach of a warranty gives damages only; for an innominate term the answer depends on how serious the consequences of the breach are.
  4. Losses are recoverable if they arise naturally from the breach or were in the reasonable contemplation of both parties at the time of contracting as a probable result of the breach (Hadley v Baxendale).
  5. A clause fixing the sum payable on breach is an unenforceable penalty only if it imposes a detriment out of all proportion to the innocent party’s legitimate interest in performance.
  6. Frustration discharges a contract when a supervening event, not the fault of either party, makes performance impossible or radically different. The Law Reform (Frustrated Contracts) Act 1943 then adjusts money paid and benefits conferred.

Start the free contract drill · Full FLK1 mock exam

Common questions

Do I need to know contract case names for SQE1?

Only where a case name is the usual name for a rule, such as Hadley v Baxendale on remoteness. Otherwise the SRA expects you to apply the principle without citing the case.

How much of FLK1 is contract law?

The SRA blueprint gives Contract Law 14–20% of FLK1, about 24 to 34 of the paper’s 170 questions, in session 2 from January 2027 with Tort and the Legal System.

Take the full timed FLK1 mock exam

170 five-option questions in two timed sessions of 85 (2 hours 33 minutes each), in the January 2027 FLK1 format, with a score by subject and an explanation for every answer.

Or try the free contract drill

More SQE1 subjects

Subjects, blueprint and format: SRA: SQE1 Assessment Specification (from 1 September 2026) · SRA: SQE1 Functioning Legal Knowledge blueprint (Annex 4) · SRA blog: Understanding SQE1 (24 September 2026), checked November 2026.

Game Assessment Prep is an independent practice site. It is not affiliated with or endorsed by the Solicitors Regulation Authority (SRA) or Kaplan, the SQE assessment provider. Every question is original; none is taken from SRA or Kaplan sample questions or any SQE assessment.