CHAPTER 2 : ACCEPTANCE & CONSIDERATION

This section provides the definition of "Offer" is

• Section 2 (a) CA 1950

• Section 2 (b) CA 1950

• Section 2 (c) CA 1950

• Section 2 (d) CA 1950

Which of the following DOES NOT amount to acceptance of an offer?

• When the acceptance is put in the post by the offeree

• When the acceptance is received by the offeror

• When a third party informs the offeror that the offeree is accepting the offer.

• When the acceptance is received by the offeror's agent.

The following statements relate to the postal rules, which one is incorrect

• The postal rules can never be excluded from a contract.

• The postal rules can be excluded from a contract.

• Under the postal rules a letter of acceptance is effective from the moment of posting even though it never arrives.

• The postal rules only apply to acceptance of an offer

Which of the following statements is CORRECT, in relation to the withdrawal of an offer?

• Communication of withdrawal an offer may only be made by the offeror.

• Communication of withdrawal of an offer may only be by the offeree.

• Once an offer has been made it can never be withdrawn.

• An offeror has one week to withdraw his offer.

Jake send an e-mails to Ali by offering him his computer for £1,000. Ali replies asking if Jake will accept a cheque or does he want cash? Ali's statement will be treated as which of the following.

• A counter offer terminating the offer made by Jake.

• A refusal of the contract.

• Acceptance of Jake's offer.

• A request for information.

Which one of the following statements regarding acceptance is TRUE?

• Silence does not constitute valid acceptance

• An offeree can accept an offer of which he was not aware

• There is no need for an offeree to communicate his acceptance to the offeror.

• Acceptance need not precisely match the terms of the offer.

What is the principal effect of a counter-offer?

• A counter-offer destroys the original offer and replace it with a new offer

• A counter-offer creates a binding contract based on the terms of the counter-offer.

• A counter-offer creates a new offer, but the original offer is still capable of being accepted.

• A counter-offer creates a binding contract based on the terms of the original offer

What does the postal rule state?

• That acceptance occurs as soon as the letter is posted.

• That acceptance occurs when the letter is received by the offeror

• That acceptance occurs when the letter is read by the offeror.

• That acceptance does not occur if the letter is lost in the post.

Which one of the following statements provides an accurate description of executory consideration?

• Executory consideration is consideration that is yet to be provided

• Executory consideration is consideration that has already been provided.

• Executory consideration is consideration that is promised following the other party's performance of an act.

• Executory consideration is consideration that is insufficient in the eyes of the law

Consideration must be something of value in the eyes of the law . Decided Case involve.....

• Thomas v Thomas

• Ward v Byham

• Re McArdle (1951) Ch 669

• Williams v Roffey Bros