Topic 4 - Contract Law (Offer)

Which of the following statements about the formation of a contract is TRUE?

• Consideration must be of equal value to the promise received.

• An agreement made without consideration is always void.

• A contract must always be in writing to be legally binding.

• A contract without intention to create legal relations is not enforceable.

In Harvey v Facey (1893), why did the court determine there was no contract?

• The seller did not intend to be bound by the response.

• The buyer failed to provide consideration.

• The agreement was not in writing.

• The buyer’s acceptance was not communicated properly.

In Carlill v Carbolic Smoke Ball Co (1892), why was the company’s advertisement considered a unilateral offer?

• It was addressed to a specific person.

• The company had deposited money to show sincerity.

• The company explicitly stated it was an invitation to treat.

• The offeree had to communicate acceptance before claiming the reward.

Under the postal rule, when does an acceptance become effective?

• When the letter is received by the offeror.

• When the letter is correctly addressed, stamped, and posted.

• When the offeror acknowledges receipt of the letter.

• When the offeree verbally confirms acceptance after posting the letter.

In Dickinson v Dodds (1876), why was the revocation of the offer valid?

• It was communicated via a reliable third party.

• It was made in writing and signed by the offeror.

• The offeree had not yet responded.

• It was sent via registered mail.

If an offeree makes a counter-offer, what happens to the original offer?

• It remains open for the original acceptance.

• It becomes a new contract.

• It is automatically revoked.

• It is converted into a unilateral offer.

In O’Keefe v Lee Calan Imports (1970), why was the advertised price of a car not enforceable?

• The advertisement was an invitation to treat, not an offer.

• The price had already been changed before acceptance.

• The offeree failed to make a valid acceptance.

• The seller made a counter-offer.

If an offer states it will remain open for 10 days, but the offeror sells the item to someone else on day 7, is the offer still valid?

• Yes, the offeror must wait the full 10 days.

• No, the offer has been revoked.

• Only if the offeree has not yet received notice of the sale.

• Yes, unless the offeree makes a counter-offer.

If an offeree states “I accept, but can you lower the price?”, what is the legal effect?

• A contract is formed.

• It is a counter-offer.

• It is a rejection of the original offer.

• It is a request for information.

Can an offeror impose a condition that silence will be deemed acceptance?

• Yes, if the offeree has previously agreed.

• No, silence cannot constitute acceptance.

• Yes, if the offeror includes it in a contract.

• No, unless the offeror and offeree are in a fiduciary relationship.