Law of Contract Quiz

What are the essential elements of a valid contract?

• Free consent and possibility of performance

• Capacity of the parties and lawful objects

• Consideration and intention to create legal relations

• Offer and acceptance

What is the distinction between an offer and an invitation to treat?

• An offer is an expression of willingness to contract on definite terms, while an invitation to treat is an inducement to customers to come and make an offer

• An offer is an inducement to customers to come and make an offer, while an invitation to treat is an invitation to negotiate

• An offer is an invitation to negotiate, while an invitation to treat is an inducement to customers to come and make an offer

• An offer is an inducement to customers to come and make an offer, while an invitation to treat is an expression of willingness to contract on definite terms

When does an offer become binding on the person making it?

• When it is accepted by the other party

• When it is communicated to the offeree

• When it is posted through a letter

• When it is revoked by the offerer

What terminates an offer?

• Rejection

• Acceptance

• Revocation/withdrawal

• Death/bankruptcy of offerer

What is a counter offer?

• A variation of the original terms of an offer

• An offer that is not definite or specific in expression

• An offer made to a specific person

• An offer that is open for a specified duration

When does acceptance become effective when communicated by post?

• When the letter containing the acceptance is lost or destroyed

• When the letter containing the acceptance is received by the offerer

• When the letter containing the acceptance reaches the offeree

• When the letter containing the acceptance is posted

What is required for acceptance to be valid?

• It must be communicated in the manner prescribed

• It must be communicated within a given time

• It must be conditional

• It must be communicated to the offerer

What is a standing offer?

• An offer expressed in definite words

• An offer that is open for a specified duration

• An offer that is made to a specific person

• An offer that is not definite or specific in expression

What is the effect of a counter offer?

• It makes the original offer conditional

• It extends the terms of the original offer

• It makes the original offer binding

• It extinguishes the original offer

When does an offer come to an end?

• When it is posted through a letter

• When it is revoked by the offerer

• When it is accepted by the other party

• When it is communicated to the offeree