Deck 2: Formation of Bilateral Contracts

Question 1

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

A) An auctioneer advertises that she will sell goods without reserve, and those goods are put up for sale.
B) A shop owner displays goods in a shop window.
C) An invitation to tender, asking for tenders for the supply of certain goods.
D) An auctioneer puts up certain goods for sale.

Answer 1

A

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?

A) There is no contract, as B could not have accepted the offer.
B) There is no contract, as B's reply constitutes a counter-offer, which A did not accept.
C) Acceptance was complete, and thus the contract was made, as of 8 August.
D) There is no contract, as A effectively revoked the offer on 8 August.

Answer 2

A

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?

A) There is no contract between the parties.
B) The offer was accepted on 1 May.
C) B's reply on 2 May constitutes valid acceptance.
D) B accepting the offer to sell for £120 constitutes valid acceptance.

Answer 3

A

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.

A) Damage to the car does not frustrate the proposed contract since it is not clear that it would have amounted to frustration had the contract been concluded.
B) Z can no longer accept the offer.
C) The term that Z had examined the car and had satisfied herself that it was in good order and condition is irrelevant, as it does not require the car to remain in the same condition.
D) The offer has come to an end.

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?

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.

Question 7

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

A) No contract.
B) The contract terms are those of the last party to offer to contract on his standard terms.
C) The contract terms are those of the first party to offer to contract on his standard terms.
D) The court seeks to identify the material terms from both parties standard terms.

Question 8

Which of the following statements best reflects the postal rule?

A) Offers, revocation of offers, and acceptances made by post are deemed to have been made when posted.
B) A contract is made when acceptance is made by post, unless the postal rule is excluded by the terms of the offer or where postal acceptance was not within the contemplation of the parties.
C) Offers and acceptance made by post are deemed to have been made when received by the offeror.
D) A contract is made when acceptance is made by post.