4009CLS Workshop 3 - Contract I

Contracts can only be in writing.

• True

• False

Answer explanation

They can also be made orally or through the conduct of the parties.

The name given to the person who makes the offer is the _______?

Answer explanation

The person who accepts the offer is called the offeree.

What happens to an offer if the offeree dies?

• The offer will continue to be made without them

• Someone else will make an offer in their name

• The contract will need to be closed down by the other party's lawyers

• The offer dies

Answer explanation

The death of the offeree results in the death of the offer.

Is sending an email confirmation a form of acceptance?

• Yes

• No

Answer explanation

Yes, you can accept an offer via email.

Chandler has made an offer to Monica to buy her New York apartment. Monica posts a letter to confirm her acceptance of the offer but the letter gets lost in the post. Has the offer been accepted?

• No, the letter never reached Chandler to confirm

• Yes, it was accepted as soon as Monica posted the letter

• No, and the postal system is liable for losing the letter

• Yes, Chandler will receive it eventually

Answer explanation

The default rule is that acceptance is binding from the moment the letter is posted, regardless of whether the recipient receives it or not.

A unilateral offer is...

• A promise in return for an act

• A promise in return for a promise

• A promise to buy a unicycle

• A promise that has been accepted by one person

Which of the following is NOT an example of a contract

• Taking a bus to Coventry City Centre

• Buying a new phone online from a second hand shop

• Agreeing to work an extra shift for your manager

• Your parents giving you pocket money every week

Answer explanation

Your parents giving you pocket money is generally a gesture of good will, there is no intention to be legally bound.

What are the 5 essential elements of a contract?

• Offer, Acceptance, Consideration, Intention, Cancellation

• Offer, Acceptance, Clauses, Sections, Clarity

• Offer, Acceptance, Consideration, Intention, Capacity

• Offer, Acceptance, Compliance, Information, Clarity

Jim offers to buy Michel's Ferrari for £1. Michael agrees to this offer, not realising how valuable his car is. Later Michael realises his mistake and wants his car back. Is Michael's claim likely to succeed?

• Yes

• No

Answer explanation

The answer is no. Jim and Michael entered into a contract and negotiated the terms. The offer was £1, Michael accepted the offer. Although the money was not proportionate to the worth of the car, there is still consideration as Jim still gave £1 and Michael gave his car. There was an intention to create legal relations as the paperwork would have been transferred over to Jim's name and both were of sound mind, meaning they had the capacity to consent to entering this contract. Bad luck, Michael.

In your own words, what is an invitation to treat?