Offer and acceptance

Question 1

Contract definition

Answer 1

An agreement supported by consideration from both parties with the intention to be legally binding by parties with the legal capacity to enter into the agreement

Question 2

Gratuitous promises

Answer 2

Enforceable if executed via a deed otherwise only enforceable if supported by consideration from both parties

Question 3

Offer definition and criteria

Answer 3

Expression of willingness to be bound by certain terms.

The terms have to be certain and not vague.

Question 4

Invitation to treat

Answer 4

Inviting someone to make an offer (including goods in windows, adverts in newspapers, prospectus)

Question 5

Fax rule

Answer 5

If agreement faxed then acceptance is when signed fax is received

Question 6

Postal rule

Answer 6

Acceptance is when the agreement is posted

Question 7

Unilateral or “reward type” contracts

Answer 7

Company placed advert offering £100 for anyone who bought a smoke ball and subsequently caught flu

This does not require communication of acceptance as the action constitutes acceptance