Chapter 2 Self-test questions

. Which of the following statements is incorrect?

There is no difference in law between an offer and an invitation to treat.

An offer is a set of terms by which the offeror is willing to be bound.

In bilateral contracts the parties exchange promises.

Acceptance in contract may take effect through conduct and need not necessarily be communicated.

. The case Fisher v Bell established the following point of law:

All adverts in a magazine will constitute an offer to sell.

A price tag on an item displayed in a shop window must be sold at the displayed price by the retailer.

An item in a shop window displaying a price tag is generally held as an invitation to treat.

All adverts through the internet are considered offers and are not examples of an invitation to treat.

. Where a contract does not stipulate an expiry date, it will remain open:

forever, until accepted by the offeree.

until expressly revoked by the offeror.

until a counter-offer is made.

for a reasonable time, after which it will automatically expire.

. Where the offeror has promised to keep open an offer for a specific period of time, he/she:

may revoke the offer before the time has expired where this has been communicated to the offeree.

must keep the offer open for this period of time.

may refuse to go ahead with contract if he/she changed his/her mind but failed to communicate this to the offeree.

may revoke the offer before the expiry of the time limit only where he/she has obtained permission from the offeree.

. Which of the following is NOT effective communication of acceptance of an offer?

Deviation (which is a quicker form) from the method stipulated in the offer

Silence

Conduct of the contract

Outward evidence of the offeree's intention to accept

. In relation to instantaneous forms of communication of acceptance, where will acceptance take place?

From the location where the communication via telex is sent.

As soon as a letter of acceptance is posted.

When the acceptance has been received by the offeror.

From the location where the communication by e-mail is sent.

. The adequacy of the consideration provided in an agreement in establishing an enforceable contract is:

assessed by reference to the 'reasonable man'.

assessed in relation to the consideration provided and an independent assessment of the value of the item being contracted for.

what the court considers is adequate.

a matter for the parties to consider at the time of making the agreement.

. In relation to existing duties, which of the following statements is incorrect?

Performance of existing duties can never amount to good consideration.

Where the existing duties are exceeded, this may amount to good consideration.

Where the promisee confers a benefit on the other party, this may amount to good consideration.

Where the promisee assists the other party in avoiding a detriment, this may amount to good consideration.

. An intention to create legal relations will be presumed in which of the following situations?

Between friends and social acquaintances

Between husband and wife

Where parties in a commercial relationship have established the agreement between them is 'in honour only'

Between parties in a commercial relationship

. Where a meaningless term is used in an agreement, the effect is?

The entire contract will be held unenforceable.

It has no practical effect on the contract - the whole contract is enforceable.

This term, rather than the entire contract, may be held unenforceable.

The courts will order the parties to re-write the contract to more accurately identify what their intentions were.

Chapter 2 Self-test questions

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