Contract law - elements of a contract

Tick each of the three elements of a legally enforceable contract:

• Offer and Acceptance, Invitation to Treat, Consideration

• Invitation to Treat, Consideration, Intention to create legal relations

• Offer and acceptance, Consideration, Intention to be legally bound

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.

• Leonard v Pepsico (1999)

• Pharmaceutical Society of Great Britain v Boots Cash Chemist [1953] AC 1 QB 401

• Donoghue v Stevenson [1932] UKHL 100.

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.

The general rule of the postal acceptance rule i:s that the offer is 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.

Consideration is the thing of value promised to one party in a contract in exchange for something else of value promised by the other party

• True

• False

Which of the following is a contract?

• Betty offers to give a book to Lou. Lou accepts.

• Betty offers Lou the book in exchange for Lou’s promise to pay twenty-five dollars. Lou accepts.

• Betty offers to give Lou the book if Lou promises to pick it up at Betty’s house. Lou agrees.

• None of the above

Consideration is...

• A set of mutual promises in which each party agrees to give up something to the benefit of the other - each agrees to give something and get something

• The principle that an offer must be accepted on its terms without being a counter-offer

• The idea that both parties must intend to be legally bound by their promises

• The element of a contract that says the value of what each party is giving up must be equal.

Tom said to Lois, ."I'll sell you my car for $5,000." Lois replied, "I'll take it for $3,500." This is considered a(n):

• option

• revocation

• rejection

• counteroffer

Dan offered Mrs. Jacobs a lawn-cutting special for only $30 per week for 10 weeks. Dan told Mrs. Jacobs, "I will start cutting your lawn by next Tuesday if I do not hear from you." Is this a valid contract?

• no, the offer is too vague or uncertain

• no, it is a counter-offer not an acceptance

• no, there is no acceptance because silence cannot be acceptance

• no, no consideration has been given as Mrs Jacobs isn't getting a benefit