Week 2 Formation of Contract

Question 1

What are the 5 elements of a contract?

Answer 1

1) Offer
2) Acceptance
3) Consideration
4) Intention
5) Writing?

Question 2

What are the 3 rules to an offer?

Answer 2

1) Must not be puffery / invitation to treat.
2) Must be communicated.
3) Can be revoked at any time before acceptance.

Question 3

Difference between Offer & Invitation to Treat?

Answer 3

The offer has to be an amount which can be agreed to at anytime, cannot be refuted once paid. E.g. Vending Machines with stock, car parking.

Invitation to Treat is the potiential for an item to be sold. E.g. Advertisements, Goods on Display.

Question 4

Are contracts about parameters or terms?

Answer 4

Contracts are only about parameters.

Question 5

What are the 2 Major Types of Contracts?

Answer 5

1) Unilateral
2) Bilateral