Chapter 1 Multiple choice questions

. According to the Court of Appeal in Pharmaceutical Society of GB v Boots [1953] 1 QB 401, which one of the following statements most accurately describes the normal process of contract formation in a self-service shop?

The display of goods is an offer and the customer accepts that offer by placing the goods into the shopping basket/trolley.

The customer makes an offer by placing the goods into their shopping basket/trolley and the cashier accepts that offer by ringing up the price of the goods on the cash register (or passing the goods over the barcode reader).

The customer makes an offer by taking the goods to the checkout and the cashier accepts that offer by ringing them up on the cash register.

The display of goods is an offer and the customer accepts that offer when they take the goods to the checkout.

. In which one of the following circumstances is the acceptance ineffective because it does not comply with the prescribed method of acceptance in the offer?

The offeree uses an equally efficacious method of acceptance as that prescribed in the offer.

The offeree uses a method of acceptance that is more advantageous to the offeror than the prescribed method of acceptance in the offer.

The offeror makes it clear that the prescribed method of acceptance is the only and mandatory method.

The offeree knows that the offeror prefers the prescribed method of acceptance.

. A Ltd sends a brochure to B, which prices a certain type of mountain bike at £250. B replies: 'I am prepared to pay £240 in cash for the mountain bike.' Which one of the following statements is true?

B's reply constitutes a counter-offer.

B's reply constitutes an acceptance of A's offer.

B's reply constitutes an offer.

B's reply constitutes a request for information.

. A, the owner of Tyr Supermarket, advertises a 'reward of £500 for the first person to supply information if that information leads to the successful prosecution of the criminal mastermind responsible for a series of thefts from Tyr Supermarket'. B supplies the information from which the criminal is successfully arrested and prosecuted. B thereupon claims the reward. Which one of the following statements is true?

The advertisement is only an invitation to treat and therefore B has no right to the reward.

The advertisement is only an invitation to treat but B can claim the reward once the criminal has been successfully prosecuted.

The advertisement is a unilateral offer under which A is bound to pay B £500 when B supplies the information.

The advertisement is a unilateral offer under which A is bound to pay B £500 only when the information supplied by B finally leads to the successful prosecution of the criminal.

. A offers to sell her car to B for £2,000. B replies: 'Can I pick it up tomorrow by any chance?' A responds: 'If you pay by cheque, then it must be cleared by my bank before you can drive the car away, but if you pay by cash, you can pick up the car immediately if you wish.' B replies: 'I accept your very generous offer. I'll pay by cheque but I need to collect the car immediately.' The next morning, B sends another message to A: 'OK. I can pay by cash.' B turns up to pay that afternoon, but A then refuses to sell her car to B because she has received a better offer from C. Which one of the following statements most accurately describes the legal position between A and B?

B's first response is a counter-offer, which destroys A's original offer. No contract can therefore take place.

B's first response is a request for information but no contract can take place because B's second response is a counter-offer, which destroys A's original offer, and this counter-offer is never accepted by A.

Both of B's first two responses are requests for information and a contract is made when B's third response is communicated to A accepting A's offer.

There is a contract between A and B because A has failed to respond to B's last message expeditiously and B has relied upon A's silence by turning up to pay.

. A, a commercial landowner, sends a letter to B and C inviting them to make tenders for a construction project. In the letter, A requires that both tenders 'must reach me before the 1st of June' and also states that he 'will accept the most competitive bid'. B submits a bid of £30,000; C submits a bid of £28,000. Both bids arrive in A's office before 6pm, on 1 June. Due to a mistake by A's secretary, C's bid is not processed. The two bids are similar in all aspects but the price. After careful consideration, A decides to employ B as the constructor for £30,000. Which one of the following statements is true?

There is a bilateral contract between A and C when C submits its bid. A has breached this contract by employing B.

There is no contract between A and C because A has accepted B's bid.

There is a bilateral contract between A and C when C submits its bid. A is bound to consider C's bid and has breached this duty by neglecting it.

There is a unilateral contract between A and C when C submits its bid. A has breached this contract by employing B.

. On 1 June, A, a manufacturer, sends a fax to B, the owner of a stationery shop, offering to sell one ton of standard-quality A4 paper to B for £500. On 3 June at 10pm, B faxes an acceptance to A. Later that night, B changes her mind and emails a revocation of her acceptance to A's private email address. At 9am the next day, A opens up his shop as usual and immediately sees the fax. Two hours later he checks his private email account (from his shop) and reads B's withdrawal. Which one of the following statements most accurately describes the legal position between A and B?

A contract exists between A and B because B can assume that A's fax machine is monitored 24 hours a day and B's faxed acceptance is effective when it arrives at A's office at 10pm on 3June.

No contract exists between A and B because, by analogy with the postal rule, B's email is communicated at the time it is sent and this precedes the time when B's faxed acceptance takes effect, namely at 9am on 4 June.

No contract exists between A and B because A should have checked his emails at home before departing for his shop and B's email should be treated as having been communicated before her faxed acceptance takes effect at 9am on 4 June.

A contract exists between A and B because B's email has not been communicated when her faxed acceptance takes effect at 9am on 4 June.

. A sends an email to B offering to sell her Ford Focus car to B for £5,000 and clearly states that the offer will be open for one week. On the fifth day, A receives an offer from C to buy the same car for £5,500. A then emails B to say that she now wants £5,500 for the car. On the sixth day, B replies to A's second email purporting to accept the original offer of £5,000. Which one of the following statements is true?

There is no contract between A and B because A's second email has revoked the original offer to sell the car for £5,000.

There is a contract between A and B because A's second email is not an express revocation of the original offer and B can pick one of the two offers to accept.

There is a contract between A and B because A clearly states that the original offer is open for one week and thus cannot revoke it before that period expires.

There is a contract between A and B because B replies to A's second email and B's reply must be taken as an acceptance of A's second offer of £5,500.

. Which one of the following statements relating to revocation of a unilateral offer is most likely to be true?

The offeror is entitled to revoke the unilateral offer at any time before completion of the performance of the act requested in the offer.

The offeror loses the power to revoke the unilateral offer once an offeree has commenced performance of the act requested in the offer.

The offeror loses the power to revoke the unilateral offer once the offeror has notice that an offeree has commenced performance of the act requested in the offer.

The offeror has a general implied obligation not to revoke the unilateral offer once the offeror has notice that an offeree has commenced performance of the act requested in the offer.

. Which one of the following statements most accurately describes the principle for which Byrne & Co v Van Tienhoven & Co (1880) 5 CPD 344 is authority?

A unilateral offer of reward cannot be accepted if there is no knowledge of the offer.

An offeree could not accept an offer after the offeror had posted a letter revoking the offer.

Revocation of an offer by post would only become effective when received by the offeree.

A counter-offer destroys an original offer.

Chapter 1 Multiple choice questions

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