Chapter 3 Self-test questions

. The display of goods in a shop window is generally considered to be what?

An offer to the customer.

An acceptance by the shopkeeper.

An invitation for the customer to make an offer.

A referential bid by the shopkeeper.

. In auction sales, who makes an offer, and who accepts the offer?

The auctioneer makes the offer, the bidder accepts.

The bidder makes the offer, the auctioneer accepts.

The owner of the goods makes the offer, the bidder accepts.

The bidder makes the offer, the owner of the goods accepts.

. When tenders are solicited from persons known to the invitor, and there is a prescribed procedure for the submission of tenders, will the invitor be required to consider all tenders?

Yes, always.

No, never.

Yes, if the tenders are submitted according to the conditions.

No, unless the tenderer sues for breach of contract.

. Where acceptance is made by post, at what point is acceptance deemed to occur?

When A posts their acceptance.

When O reads the letter.

When O receives the letter.

When A puts their acceptance letter into its envelope.

. Which statement best describes the position where acceptance is communicated via email, telex, or fax?

Acceptance must be communicated to the offeror, and the contract is formed in the place from where acceptance is communicated.

If the offeree's acceptance fails, for instance if they receive an email bounce-back message, there is a valid contract.

Acceptance must be communicated to the offeror, and there will be a contract as soon as the offeree sends their acceptance.

Acceptance must be communicated to the offeror, and the contract is formed in the place where acceptance is received.

. Which of the following constitutes a counter-offer?

O offers to sell a car for £3000. A agrees to pay £3000.

O offers to sell a car for £3000. A agrees to buy the car but offers to pay only £2000.

O offers to sell a car for £3000. A asks whether O would be willing to accept £2000.

O offers to sell a car for £3000. A refuses to accept this offer.

. Which statement best characterises the approach taken to the acceptance of standard terms by the majority in Butler Machine Tool Co Ltd v Ex-Cell-O Corp (England) Ltd?

The party last to send its standard terms to the other successfully imposes their terms for the contract.

The party first to send its standard terms to the other successfully imposes their terms for the contract.

Where both parties attempt to impose their standard terms to the contract, a flexible approach must be taken, to incorporate the material terms in which the parties agree.

Neither party succeeds in imposing their terms for the contract. Instead, the court decides the terms.

. What is the rationale for requiring the terms of the acceptance to correspond to those of the offer?

It respects the autonomy of the offeree, and ensures that they are able to negotiate the terms of their contract.

It respects the autonomy of the offeree, and allows them to modify the terms of the offer.

It respects the autonomy of the offeror, and forces him to part with property against his wishes.

It respects the autonomy of the offeror, and prevents terms being imposed on him to which he cannot agree.

. In the absence of express stipulation, for how long will an offer be valid?

It won't be valid; all offers must contain a deadline by which the offeree must respond.

Up to one month after the offer is sent.

Up to one month after the offer is received.

For the length of a reasonable amount of time.

. In relation to the duration of an offer, what is the 'implied term theory'?

Even though the offeror stipulates a deadline for acceptance, this is unfair, so the court implies a term that the offer expires after a reasonable amount of time.

Where the offeror does not stipulate a deadline for acceptance, the court implies a term that the offer expires after a reasonable amount of time.

Where the offeror does not stipulate a deadline for acceptance, the court implies a term that the offer does not expire unless this is communicated by the offeror.

Where the offeror does not stipulate a deadline for acceptance, the court implies a term that the offer expires one month after the offer is received.

. What was the explanation of Buckley J in Manchester Diocesan Council for Education v Commercial and General Investments Ltd [1970] 1 WLR 241 for why the court may determine the duration for which an offer is valid, when no duration is specified by the offeror?

The failure to accept within a reasonable time amounts to an implied rejection of the offer, which also brings the offer to an end.

Where the offeror does not stipulate a deadline for acceptance, the court implies a term that the offer expires after a reasonable amount of time.

The failure to accept within a reasonable time amounts to an implied acceptance of the offer, meaning that the parties have a valid contract.

None of the above: Buckley J does not believe that the courts should determine the duration for which an offer is valid, when no duration is specified by the offeror.

. When may O revoke the offer made to A?

Always.

Never.

Only before it has been accepted by A.

Only after it has been accepted by A.

. Which of the following limits the ability of O to revoke an offer made to A?

A requests that O provides A more time to decide whether to accept.

O receives communication from A that A will not accept the offer.

O accepts consideration from A in return for a promise to keep the offer open.

None of the above: unless A accepts the offer O will always be able to revoke the offer.

. What may A do if they intend to accept O's offer to buy property, but it emerges from a trustworthy source that O has sold the property to a third party?

Sue O: O is in breach of contract.

Sue O: O has breached A's confidence.

Nothing: A and O are deemed to have a collateral contract, dependant on O's contract with the third party.

Nothing: A cannot accept O's offer.

. O offers A the use of his vehicle to A, but before A accepts the offer, the car is stolen and disappears. A then accepts the offer. What is the consequence of this acceptance?

Acceptance is not effective: the offer has come to an end.

Acceptance is effective and O is liable for breach of contract.

Acceptance is effective but O is not liable for breach of contract.

None of the above.

. If O writes to A, offering to paint A's portrait, and dies after posting the offer, how may A respond?

Accept the offer and sue O's personal representatives for damages when no portrait is painted.

Accept the offer and sue O's personal representatives for an order for specific performance of the contract.

Accept the offer even where A knew of O's death.

None of the above.

. Can an agent carry out the act of acceptance when the intended offeree has died?

Yes, in all cases.

Yes, provided the offeror knows of the intended offeree's death.

No, the offeree's death generally brings the offer to an end.

No, unless it is a contract for services.

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