Contract law

To find a valid contract, the courts require an offer, that is clear in its terms, is capable of being accepted, and has been accepted. Which of the following types of contract fits most uncomfortably into the traditional contractual structure outlined here?

• A multi-party contracts

• A unilateral contract

• A collateral contract

• A standard form contracts

With reference to the formation of a contract, what is an 'invitation to treat'?

• An offer by one party that results in a contract upon acceptance by a second party.

• An invitation to certain members of the public to submit offers, which clearly evinces an intention to take into consideration all offers submitted by a particular deadline.

• A statement welcoming the submission of offers without any legal guarantee that a contract will result.

• A counter-offer made in response to an offer and suggesting a contract on modified terms.

Which of the following statements could apply to the contractual status of a restaurant menu?

• A menu is an offer by the restaurant which is

  accepted by the customer when he/she orders.

• A menu is an invitation to treat by the restaurant. The customer's order is therefore an offer to buy, which may be accepted or rejected.

• It depends on whether the menu is inside or outside of the restaurant.

A 'battle of the forms' occurs where both buyer and seller use standard forms and both insist that their relationship is governed by their own standard conditions. In these circumstances, two main approaches have been applied. One is to deny the existence of a contract on the basis that there is no true agreement between the parties. The other is to consider the last set of forms sent to be decisive, the terms of which will govern the contract. Which of these approaches was adopted in Butler Machine Tool Co v. Ex-Cell O Corporation [1979] 1 WLR 401?

• The first - no contract was found.

• The second - the parties were said to have agreed on a set of terms.

Does an invitation to tender, followed by the simple submission of a tender, ever result in the creation of a binding contract between the invitor and the bidder?

• Yes - always.

• Yes - sometimes.

• No - never.

A Ltd sends a brochure to B, which prices a certain type of mountain bike at £250. B replies: 'I offer to pay £240 in cash for the mountain bike.' Which one of the following statements is true?

• B's reply constitutes a counter-offer.

• B's reply constitutes an acceptance of A's offer.

• B's reply constitutes an offer.

• B's reply constitutes a request for information.

A, the owner of Tyr Supermarket, advertises a 'reward of £500 for the first person to supply information if that information leads to the successful prosecution of the criminal mastermind responsible for a series of thefts from Tyr Supermarket'. B supplies the information from which the criminal is successfully arrested and prosecuted. B thereupon claims the reward. Which one of the following statements is true?

• The advertisement is only an invitation to treat and therefore B has no right to the reward.

• The advertisement is only an invitation to treat but B can claim the reward once the criminal has been successfully prosecuted.

• The advertisement is a unilateral offer under which A is bound to pay B £500 when B supplies the information.

• The advertisement is a unilateral offer under which A is bound to pay B £500 only when the information supplied by B finally leads to the successful prosecution of the criminal.

A offers to sell his car to B for £2,000. B replies: 'Can I pick it up tomorrow by any chance?' A responds: 'If you pay by cheque, then it must be cleared by my bank before you can drive the car away, but if you pay by cash, you can pick up the car immediately if you wish.' B replies: 'I accept your very generous offer. I'll pay by cheque but I need to collect the car immediately.' The next morning, B sends another message to A: 'OK. I can pay by cash.' B turns up to pay that afternoon, but A then refuses to sell his car to B because he has received a better offer from C. Which one of the following statements most accurately describes the legal position between A and B?

• B's first response is a counter-offer, which destroys A's original offer. No contract can therefore take place.

• B's first response is a request for information but no contract can take place because B's second response is a counter-offer, which destroys A's original offer, and this counter-offer is never accepted by A.

• Both of B's first two responses are requests for information and a contract is made when B's third response is communicated to A accepting A's offer.

• There is a contract between A and B because A has failed to respond to B's last message expeditiously and B has relied upon A's silence by turning up to pay.

Which one of the following statements relating to revocation of a unilateral offer is most likely to be true?

• The offeror is entitled to revoke the unilateral offer at any time before completion of the performance of the act requested in the offer.

• The offeror loses the power to revoke the unilateral offer once an offeree has commenced performance of the act requested in the offer.

• The offeror loses the power to revoke the unilateral offer once the offeror has notice that an offeree has commenced performance of the act requested in the offer.

• The offeror has a general implied obligation not to revoke the unilateral offer once the offeror has notice that an offeree has commenced performance of the act requested in the offer.

Where two parties make identical offers to each other at approximately the same time, these two offers cannot form a contract between the parties.

• True

• False