Understanding Contract Basics

Which of the following best describes an 'offer' in contract law?

• A suggestion that cannot be accepted

• A definite proposal made with the intention to be bound if accepted

• A casual conversation about a possible agreement

• An invitation to treat

What is 'acceptance' in the context of forming a contract?

• A counter-offer

• An agreement to all terms of the offer without changes

• A rejection of the offer

• A request for more information

Which of the following is NOT required for a valid contract?

• Offer

• Consideration

• Written document

• Intention to create legal relations

In Australian contract law, what does 'consideration' mean?

• A polite conversation

• Something of value exchanged between parties

• A written agreement

• A legal penalty

Which of the following is an example of an invitation to treat?

• A shop displaying goods with price tags

• A person saying, "I will sell you my bike for \$100"

• Signing a contract

• Paying for an item at the checkout

Which of the following statements about consideration is TRUE?

• Consideration must be adequate in value

• Consideration must move from the promisee

• Consideration can be past consideration

• Consideration is not necessary in Australian contracts

Which of the following would most likely NOT be considered a valid offer?

• "I will sell you my car for \$5,000."

• "Would you be interested in buying my car?"

• "I offer to sell you my car for \$5,000."

• "If you pay me \$5,000, I will sell you my car."

Which of the following is necessary for acceptance to be valid?

• It must be communicated to the offeror

• It must be in writing

• It must be witnessed by a lawyer

• It must be made within 24 hours

Which of the following is NOT an example of consideration?

• Paying money for goods

• Promising to do a service

• Giving a gift with no expectation of anything in return

• Exchanging goods

Which of the following best describes 'intention to create legal relations'?

• The parties must intend their agreement to be legally binding

• The parties must be friends

• The agreement must be in writing

• The agreement must be witnessed