Law ( Ch-4 )

Which of the following contracts must be in the form of a deed?

• A conveyance (a transfer of a legal estate in land)

• A transfer of shares

• Aconsumer credit contract

In relation to contract law, which of the following describes an offer?

• A statement of possible terms

• Displaying goods for sale in a supermarket

•   A verbal promise to be bound on specific terms

In a sale by auction that is stated to be 'without reserve', at which point is an offer made?

• When the auctioneer presents the goods being sold

• When a bid is made

• When the auctioneer's hammer falls

In relation to contract law, how long will an offer remain open if no time period is set for its expiry?

• One day

• One month

• For a reasonable time

Which of the following will terminate an offer?

• Posting a letter of revocation

• A request for information

• Death of the offeree

Which of the following is NOT a valid method of acceptance?

• The offeree's express words

• The offeree's conduct

• Silence of the offeree

Which of the following statements regarding the postal rule is correct?

• Acceptance is effective once the letter of acceptance is written

• Acceptance is effective once the letter of acceptance is posted

• Acceptance is effective once the letter of acceptance is delivered

Which of the following is an example of a standard form contract?

• A verbal agreement between two private individuals

• A contract for the sale of a house between two private individuals

• A contract for the supply of electricity between a utility company and a private individual

• A contract of employment between a private individual and a small local shop

Which of the following statements concerning the law and contracts is correct?

• The law seeks to ensure equal bargaining power between parties

• The law will only interfere in contracts where one party abuses a stronger bargaining position

• The law does not interfere in the formation of contracts

• The law seeks to maintain the bargaining power of parties in a contract

Which TWO of the following are examples of valid offers?

• A person verbally stating to another person that they would like to sell their computer to them for

  £500 today

• A newspaper advert that states a shop is selling shoes for £20

• A person handing their shopping to a supermarket checkout operator

• A business that circulates its price list to customers