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CHAPTER 2 : ACCEPTANCE & CONSIDERATION

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

This section provides the definition of "Offer" is

a)

Section 2 (a) CA 1950

b)

Section 2 (b) CA 1950

c)

Section 2 (c) CA 1950

d)

Section 2 (d) CA 1950

2.

Which of the following DOES NOT amount to acceptance of an offer?

a)

When the acceptance is put in the post by the offeree

b)

When the acceptance is received by the offeror

c)

When a third party informs the offeror that the offeree is accepting the offer.

d)

When the acceptance is received by the offeror's agent.

3.

The following statements relate to the postal rules, which one is incorrect

a)

The postal rules can never be excluded from a contract.

b)

The postal rules can be excluded from a contract.

c)

Under the postal rules a letter of acceptance is effective from the moment of posting even though it never arrives.

d)

The postal rules only apply to acceptance of an offer

4.

Which of the following statements is CORRECT, in relation to the withdrawal of an offer?

a)

Communication of withdrawal an offer may only be made by the offeror.

b)

Communication of withdrawal of an offer may only be by the offeree.

c)

Once an offer has been made it can never be withdrawn.

d)

An offeror has one week to withdraw his offer.

5.

Jake send an e-mails to Ali by offering him his computer for £1,000. Ali replies asking if Jake will accept a cheque or does he want cash? Ali's statement will be treated as which of the following.

a)

A counter offer terminating the offer made by Jake.

b)

A refusal of the contract.

c)

Acceptance of Jake's offer.

d)

A request for information.

6.

Which one of the following statements regarding acceptance is TRUE?

a)

Silence does not constitute valid acceptance

b)

An offeree can accept an offer of which he was not aware

c)

There is no need for an offeree to communicate his acceptance to the offeror.

d)

Acceptance need not precisely match the terms of the offer.

7.

What is the principal effect of a counter-offer?

a)

A counter-offer destroys the original offer and replace it with a new offer

b)

A counter-offer creates a binding contract based on the terms of the counter-offer.

c)

A counter-offer creates a new offer, but the original offer is still capable of being accepted.

d)

A counter-offer creates a binding contract based on the terms of the original offer

8.

What does the postal rule state?

a)

That acceptance occurs as soon as the letter is posted.

b)

That acceptance occurs when the letter is received by the offeror

c)

That acceptance occurs when the letter is read by the offeror.

d)

That acceptance does not occur if the letter is lost in the post.

9.

Which one of the following statements provides an accurate description of executory consideration?

a)

Executory consideration is consideration that is yet to be provided

b)

Executory consideration is consideration that has already been provided.

c)

Executory consideration is consideration that is promised following the other party's performance of an act.

d)

Executory consideration is consideration that is insufficient in the eyes of the law

10.

Consideration must be something of value in the eyes of the law . Decided Case involve.....

a)

Thomas v Thomas

b)

Ward v Byham

c)

Re McArdle (1951) Ch 669

d)

Williams v Roffey Bros

11.

B promised to pay A if A completed his house renovation. What type of consideration is this?

a)

Executory consideration

b)

Executed Consideration

c)

Future Consideration

d)

Past Consideration

12.

Adam Danish promised to reward RM2000 to anyone who finds and returns his wallet. Sara Aleesya found and return it to Adam. This is considered as which type of consideration?

a)

Past Consideration

b)

Executory Consideration

c)

Executed Consideration

d)

Federal Constitution

13.

Past consideration means _________.

a)

Money received in the past without making even a proposal

b)

The price which is more than the promisee’s expectation

c)

A past act done before the promise is made

d)

None of the above

14.

A promise to pay a time-barred debt must be :

a)

Oral

b)

Written and signed

c)

Registered

d)

Written and registered

15.

If there is no consideration, then _________.

a)

The agreement is valid

b)

The agreement is void

c)

The agreement is illegal

d)

The agreement is voidable