Chapter 3 End of Chapter Questions

. Ben enters Aaron's Light Emporium and picks up a candle to purchase. The candle is made with rare oils and the point of sale sign states 'Exclusive item, first come first served. One per customer.' Ben then takes it to the till and purchases the candle. At what point is the contract made by offer and acceptance?

Aaron is offering the candle for sale and when Ben presents it for purchase at the till, he is accepting that offer.

Aaron is offering the candle for sale and Ben accepts that offer when he takes the candle from the shelf.

Ben makes an offer when he presents the candle for payment at the till and Aaron accepts that offer by taking Ben's payment.

None of the options given is correct.

. A sells a necklace at an auction which he considers to be an antique. He is confident that he can sell it for at least £500, as this is what it has been valued at, but does not set a minimum price in order to save on auction fees. B reads an advertisement that the necklace is being offered to the highest bidder and makes the highest bid of £450. What is the outcome?

A is contractually bound to sell B the necklace for £450.

A is contractually bound to sell B the necklace if B provides the £500 the necklace is valued at.

A can reject B's bid and can sell the necklace at any other time.

A can reject B's bid but must give him first refusal on any subsequent sale of the necklace.

. A writes an advertisement stating that he is selling his antique watch and will consider any offers that are made to him via telephone before he leaves London at 4pm on Friday. A is in a rush and when B calls at 2pm on Friday and offers £100,000 for the watch, A accepts. An hour later C leaves a telephone message, also offering £100,000. A deletes the message without listening to it. Does C have any action for breach of contract?

Yes, because A did not even consider C's offer.

No, even if A had listened to the message, he would still have decided to accept B's offer.

No, C left a telephone message rather than speaking to A on the telephone.

No, the offer was no longer open when A accepted B's offer.

. What policy reason is there for generally disallowing referential bids?

It would be impossible to determine which was the highest bid.

All fixed bidders would be deprived of success.

The invitor's object of obtaining the best price would be frustrated.

All of the options given are correct.

. A invites bids for his property and promises to sell to the highest bidder. B offers £100,000. C offers '£90,000 or £20,000 more than the highest bidder, the maximum being £130,000'. Who is the successful bidder?

B

C

It is in A's discretion whether he wishes to accept C's referential bid.

Both are merely offers and it is at A's discretion as to whether he accepts any of the offers. correct incorrect

not completed

. A sends an offer to purchase B's farm to B by post on 12^th December. B sends his acceptance on 16^th December, but it is not received by A until 19^th December. When is the contract made?

12^th December

16^th December

19^th December

No contract is concluded.

. A offers to supply B with all of his office supplies for 3 years on A's standard terms. B replies: 'I accept on my standard terms which are attached' and places an order for some stationary. A delivers them to B, with an invoice that states that A is acting under his own standard terms. B accepts the delivery. Is B bound by A's terms?

Yes

No

. A offers to sell to B a rare collectible card for £5000. There is only one such card in existence. B meets C, a member of the same collectors group as A and B. C tells B that he purchased the card from A for £4500 and shows B the card. B telephones A straight away and says he accepts A's offer, to which A replies that the card has already been sold. Can B sue A on the basis of a contract that has been concluded between them?

Yes

No

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