contract law - offer and acceptance -2

Which of the following is NOT an essential element of a valid contract?

• A The contract must be in writing

• B The parties must be in agreement

• C Each party must provide consideration

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 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 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.

Offer, acceptance and consideration are all parts of a

• Covers

• Loans

• Applications

• Contract

True or false:

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

• True

• False

The terms of a contract must be accepted by the party to whom it was communicated.

• True

• False

Withdrawal of an offer before acceptance is

• revocation

• rejection

• counteroffer

• termination