Contract Law

Question 1

Which one of the following cases illustrates an offer to the public at large ?

a) Fisher v Bell (1960)
b) Carlill v Carbolic Smoke Ball Co (1893)
c) Thornton v Shoe Lane Parking Ltd (1971)
d) Gibson v Manchester City Council

Answer 1

b) Carlill v Carbolic Smoke Ball Co (1893)

Question 2

What is an invitation to treat ?

a) A contract where each party assumes an obligation
b) A contract where only one party assumes an obligation
c) A non binding expression of an intent to negotiate
d) The stage of an transaction at which an offer is made

Answer 2

c) A non binding expression of an intent to negotiate

Question 3

In which one of the following circumstances will an original offer not become terminated ?

a) When a counter offer is made
b) When the offer is effectively revoked or withdrawn
c) When the offeree rejects the offer
d) When information is requested about the offer

Answer 3

d) When information is requested about the offer

Question 4

Which one of the following statements is incorrect in relation to the rules of acceptance ?

a) Unilateral contracts are usually accepted by communication
b) Unilateral contracts are usually accepted by conduct
c) Generally remaining silent will not amount to acceptance
d) Acceptance of an offer means unconditional agreement to all of the terms of that offer

Answer 4

a) A unilateral contracts are usually accepted by communication

Question 5

Which of the following is not an exception to the rule that acceptance must be communicated to the offeror?

a) Performance of a unilateral contract
b) The postal rule
c) Where parties communicate face to face
d) When an offer may stare or imply that acceptance need not be communicated

Answer 5

c) Where parties communicate face to face

Question 6

Which case established the postal rule ?

a) Adams v Lindsell (1818)
b) Felthouse v Bindley (1862)
c) Cowan v O’Connor (1888)
d) The Brimnes (1975)

Answer 6

a) Adams v Lindsell (1818)

Question 7

Under the postal rule, acceptance takes place in which one of the following situations ?

a) When the letter of acceptance is written by the offeree
b) When the letter of acceptance is read by the offeror
c) When the letter of acceptance is posted by the offeree
d) When the letter of acceptance arrives with the offeror

Answer 7

c) When the letter of acceptance arrives with the offeror