Question 1

Which of the following would be an offer (and not an invitation to treat)?

Accepted Answer

An auctioneer advertising that she will sell goods without reserve and then putting those goods up for sale constitutes an offer because it signifies the auctioneer's intention to be bound to sell those goods to the highest bidder, without the option to withdraw them. This contrasts with invitations to treat, which are merely invitations for others to make offers.

Question 2

On 1 August, A makes a telephone call to B, stating that she would like to sell her car to B for £13,000. B asks for some time to consider this offer. However, on 8 August, B hears from A's mother that A already sold the car to a third party. B immediately hires a courier to deliver a letter to A, asking A whether she can deliver the car by Friday. On the same day, A writes to B saying that she is withdrawing the offer, and B sees this letter on 9 August.
Which statement is correct?

Accepted Answer

A's offer was revoked when B learned from A's mother that the car was sold to a third party, meaning B could no longer accept the offer.

Question 3

T offers to sell a camera to B for £120, stating that this offer is to be taken as accepted if B does not indicate the contrary by 1 May. On 2 May, B replies: I wish to buy the camera for £100. T rejects this price. B then accepts the offer to sell for £120. At what point is a contract concluded, if at all?

Accepted Answer

B's counter-offer on 2 May for £100 effectively rejected T's original offer, and when B later attempted to accept the original offer, it was no longer valid. Thus, no contract was formed.

Question 4

Y offered to buy Z's car. The offer provided that Z had examined the car and had satisfied herself that it was in good order and condition. In between Y's offer and Z's acceptance of the offer, the car was stolen and badly damaged. Please select all that apply.

Accepted Answer

B) Once the car was stolen and badly damaged, the subject matter of the contract (the car in good order and condition) no longer exists in the state it was at the time of the offer. This change materially affects the basis on which the offer was made, preventing Z from accepting it as if nothing had changed.D) The offer has come to an end because the fundamental basis of the offer (the car in good order and condition) has been altered by circumstances beyond the control of either party. The condition of the car being in good order and condition was a critical aspect of the offer, and with the car now damaged, the original offer cannot be accepted.

Question 5

G offers to sell property to H, and states that she will keep the offer open for six weeks if H gives her £1. H does so. Before the six weeks are up, G revokes the offer by giving notice to H. Does H have a remedy against G?

Accepted Answer

H has a remedy against G because the payment of £1 by H in exchange for G's promise to keep the offer open for six weeks creates an option contract, which is legally binding and cannot be revoked by G before the expiration of the agreed period.

Question 6

If the offeror does not specify a time for the termination of the offer, the offer continues in existence until the offeror revokes the offer.

Accepted Answer

If the offeror does not specify a time for the termination of the offer, the offer typically remains open for a reasonable period of time, after which it automatically expires if not accepted.

Question 7

What does a 'battle of the forms' usually result in?

Accepted Answer

The 'battle of the forms' typically results in the contract terms being those of the last party to offer to contract on his standard terms, often referred to as the "last shot" rule. This happens because the last set of terms sent before the contract is performed is considered to be the terms that both parties agreed to, assuming the other party does not object to these last terms.

Question 8

Which of the following statements best reflects the postal rule?

Accepted Answer

The postal rule states that acceptance of an offer becomes effective when it is posted, not when it is received by the offeror, unless the offer specifically states otherwise or if using the post was not an anticipated method of communication between the parties.

Quiz 2: Formation of Bilateral Contracts

Which of the following would be an offer (and not an invitation to treat) ?

Y offered to buy Z's car. The offer provided that Z had examined the car and had satisfied herself that it was in good order and condition. In between Y's offer and Z's acceptance of the offer, the car was stolen and badly damaged. Please select all that apply.

G offers to sell property to H, and states that she will keep the offer open for six weeks if H gives her £1. H does so. Before the six weeks are up, G revokes the offer by giving notice to H. Does H have a remedy against G?

If the offeror does not specify a time for the termination of the offer, the offer continues in existence until the offeror revokes the offer.

What does a 'battle of the forms' usually result in?

Which of the following statements best reflects the postal rule?