Contract Law - Formation of Contracts/Offer + Acceptance

What is required to form a legally binding contract?

• Offer, Acceptance, Consideration, Intention, Certainty.

• Duty, Breach, Causation, Damages

• Offer, Acceptance, Collateral, Sufficiency.

• Invitation to treat, Offer, Counter Offer, Acceptance.

What is the definition of an offer?

• An expression of willingness to negotiate.

• A declaration that one party will contract with another.

• Expression of willingness to contract with the party to whom it is addressed, as soon as the latter accepts its terms.

• An invitation for other parties to consider whether they are able to purchase the goods/services.

What is the definition of an invitation to treat?

Select all options that apply!

• An invitation to another party to negotiate.

• An indication of one party's willingness to enter into a contract with the party to whom its addressed as soon as the latter accepts its terms.

• It is not an offer, it falls short of being an offer.

• An invitation to the other party to make an offer.

Which of the following cases illustrate an invitation to treat?

Select all that apply!

• Carlil v Carbolic Smokeball Company [1892] EWCA Civ 1.

• Fisher v Bell [1961] 1 QB 394.

• Partridge v Crittenden [1968] 2 All ER 421 (QB).

• Donoghue v Stevenson [1932] UKHL 100.

• Grainger & Son v Gough (Surveyor of Taxes) [1896] AC 325 HL.

Which of the following describes a revocation or termination of an offer?

• Rejection

• Failure to satisfy or perform conditions.

• Counter offer or rejection of the offer.

• The offer may be terminated by passage of time or death of the offeree/offeror

• All of the above are correct.

What is a counter offer?

• A further offer made by the original offeror.

• Where a party seeks to introduce a secondary or ancillary agreement to the original contract.

• Where a party seeks to change or vary terms of the original offer or seeks to introduce a new term(s).

• A rejection and withdrawal of the original offer.

What is the general rule of the postal acceptance rule?

• The offer will be accepted once the letter is received by the offeror.

• When the seal of the letter is broken by the offeror.

• When the letter is posted by the offeree.

• When the offeree gets notification from the Royal Mail or Courier that his letter has been received.

True or false:

The postal rule applies to modern, instantaneous forms of communication.

• True

• False

Which of the following is not a required element of a contract.

• Mutual Assent

• Offer and Acceptance

• Consideration

• Cash Value Exchange

Person's ability to satisfy the elements required for someone to enter binding contracts

• Consideration

• Mutual Assent

• Capacity

• Offer and Acceptance