Chapter 5

Question 1

Essentials of a binding contract

Answer 1

1. Offer
2. Acceptance
3. Consideration
4. Intention to create legal relations

Question 2

bilateral offer

Answer 2

promise for promise

ex. sale of goods

Question 3

unilateral offer

Answer 3

promise for act
made to the world at large
ex. reward for lost property

Question 4

Arbitration clauses

Answer 4

states that in the case of a disagreement this clause allows for later variations to take into account future needs (availability or price)

• lack of clarity may be resolved= binding offer

Question 5

invitation to treat

Answer 5

invitation to make offers; advertisements

Question 6

tender

Answer 6

competitive offer (bid)

Question 7

subject to contract

Answer 7

not an acceptance; prior to a contract being drawn up

Question 8

burden of truth/proof

Answer 8

responsibility of proving something

Question 9

balance of probabilities

Answer 9

comparing the two stores (judge decides who is tell the truth)

Question 10

quotation

Answer 10

request for information or response to such a request

-not a valid offer

Question 11

Communication: electronic

Answer 11

valid when recipient receives message

Question 12

Communication: post

Answer 12

valid once sent

Question 13

Revocation

Answer 13

• offeree has to know (not valid until he knows)

- at any time before acceptance

Question 14

Ways to terminate offer

Answer 14

1. Death
2. Refused and counter offer
3. Time limit
4. Revocation

Question 15

gratuitous promise

Answer 15

give something for nothing (not contractual)

Question 16

option

Answer 16

a promise to allow an offeree time to consider doing business on the terms of a pre-existing offer (payment to be help open)