Contract Law Quiz 1

According to the Contracts Act 1950, what is the definition of an offer?

• A. A legally binding agreement between two or more persons

• B. A promise to do or abstain from doing something

• C. An invitation to make an offer, negotiate, or deal

• D. A call for persons to put in offers to do something

In a bilateral contract, what do each of the parties do?

• C. Both parties communicate acceptance

• D. Only one party communicates acceptance

• B. Only one party makes a promise

• A. Both parties make a promise to the other party

In the case of Carlill v Carbolic Smoke Ball Company (1892), what was the outcome regarding Mrs. Carlill's claim?

• B. There was no consideration provided by Mrs. Carlill

• D. Mrs. Carlill's claim was successful

• A. Mrs. Carlill's claim was rejected

• C. The advertisement was not considered a binding offer

What is the main difference between an offer and an option?

• A. An offer is legally binding, while an option is not

• B. An option is open for a specific time, while an offer is not

• C. An offer requires consideration, while an option does not

• D. An offer can be accepted, while an option cannot

When does an offer terminate by acceptance?

• A. Once the offer is communicated to the offeree

• D. Once the offer is revoked by the offeror

• B. Once the offer is rejected by the offeree

• C. Once the offer is accepted by the offeree

What happens when an offeree makes a counter-offer?

• A. The original offer is terminated

• B. The counter-offer becomes invalid

• C. Both offers are considered simultaneously

• D. The offeree must accept the original offer

In the context of an invitation to treat, who becomes the offeror?

• A. The shop displaying the goods

• B. A customer interested in the goods displayed

• C. The cashier in the shop

• D. The salesperson in the shop

How can an offer be terminated by revocation?

• A. By lapse of time without communication

• B. By failure of the offeree to fulfill a condition precedent

• C. By the death or mental disorder of the offeree

• D. By communication of notice of revocation by the offeror

What is the main requirement for an offer and acceptance to correspond?

• D. The offer must be distinguished from preliminary negotiations

• A. The offer must be communicated to the offeree

• C. The offer must be distinguished from an option

• B. There must be a meeting of minds

In the Raffles v Wichelhaus case (1864), what led to the termination of the contract?

• D. Misrepresentation of the goods being sold

• A. Mutual mistake as to the other's intention

• C. Failure to communicate acceptance

• B. Lack of consideration provided by either party