Offer and Acceptance: The Foundation of Contract Formation

Question 1

Which of the following is NOT a key element of an offer in contract law?

Accepted Answer

Consideration

Answer

Clear and definite terms

Answer

Intention to create legal relations

Answer

Communication to the offeree

Question 2

What is the fundamental difference between an invitation to treat and an offer?

Accepted Answer

An invitation to treat is not intended to be legally binding, while an offer is.

Answer

An offer is not intended to be legally binding, while an invitation to treat is.

Answer

An invitation to treat is directed at specific individuals, while an offer is made to the general public.

Answer

There is no distinction between an invitation to treat and an offer.

Question 3

Which of the following is NOT a valid method of communicating acceptance?

Accepted Answer

Telepathic communication

Answer

Verbal expression

Answer

Actions that align with the offer's terms

Answer

Electronic means

Question 4

In contract law, which of these is NOT a valid way to communicate an offer?

Accepted Answer

Telepathic

Answer

Verbal

Answer

Written

Answer

Electronic

Question 5

Which of the following is NOT an essential element of an offer?

Accepted Answer

Delivery of the offer

Answer

Communication of the offer

Answer

Intention to be legally bound

Answer

Certainty and completeness

Question 6

What is the general rule regarding the communication of an offer?

Accepted Answer

It must be communicated to the offeree

Answer

It must be accepted within a reasonable time

Answer

It must be in writing

Answer

It must be witnessed by a third party

Question 7

How does an invitation to treat differ from an offer?

Accepted Answer

An invitation to treat is not intended to be legally binding.

Answer

An offer must be in writing, while an invitation to treat can be oral.

Answer

An offer is revocable, while an invitation to treat is not.

Question 8

When is an acceptance effective in forming a contract?

Accepted Answer

When it is communicated to the offeror

Answer

When it is accepted by the offeror

Answer

When it is sent to the offeror

Answer

When it is received by the offeree

Question 9

Which of the following is NOT a way to accept an offer?

Accepted Answer

By remaining silent

Answer

By words or conduct

Answer

By counteroffer

Answer

By performance of the contract

Question 10

What is the effect of a counteroffer on the original offer?

Accepted Answer

It terminates the original offer

Answer

It modifies the original offer

Answer

It accepts the original offer

Question 11

Can an offer be accepted after the expiration date?

Accepted Answer

No

Answer

Yes, if the acceptance is received before the offer expires

Answer

Yes, if the offeror agrees to extend the expiration date

Answer

Yes, if the offeree does not know of the expiration

Question 12

What is the key distinction between a unilateral and a bilateral contract?

Accepted Answer

A unilateral contract is created by a single promise for an act, while a bilateral contract is created by a promise for a promise.

Answer

A unilateral contract is binding on both parties, while a bilateral contract is only binding on the promisor.

Question 13

Which fundamental element is essential for a valid offer to be formed?

Accepted Answer

Intention to create legal relations

Answer

Consideration

Answer

Promise of a reward

Answer

Acceptance by the offeree

Question 14

What is the main purpose of a counteroffer in the negotiation process?

Accepted Answer

To reject the original offer and propose new terms

Answer

To terminate the negotiation process

Answer

To accept the original offer with modifications

Answer

To clarify the terms of the original offer

Question 15

Which of the following communication methods is typically NOT considered an effective means of accepting an offer?

Accepted Answer

Silence

Answer

Written communication

Answer

Implied conduct

Answer

Verbal communication

Question 16

What is the potential legal issue that can arise from the 'battle of the forms' in contract formation?

Accepted Answer

Different parties may have differing beliefs about the agreed-upon terms

Answer

It renders the contract automatically void

Answer

It always favors the party who sends the first form

Question 17

Which of the following is a critical requirement for a valid acceptance to an offer?

Accepted Answer

Communication of acceptance to the offeror

Answer

Consideration

Answer

Signature by both parties

Answer

Written form

Question 18

Explain the concept of 'estoppel by representation' in the context of offer and acceptance.

Accepted Answer

A party may be legally bound to an offer, even if it was not intended to be legally binding, due to their own conduct

Answer

It is a defense that allows a party to withdraw an offer at any time

Question 19

Which of the following is NOT a way to terminate an offer?

Accepted Answer

Acceptance by the offeree

Answer

Revocation by the offeror

Answer

Lapse of time

Answer

Rejection by the offeree

Question 20

What is the legal significance of an invitation to treat?

Accepted Answer

It is an expression of willingness to negotiate, not a legally binding offer

Answer

It automatically results in the formation of a contract

Answer

It is a binding offer that can be accepted immediately

Question 21

Which type of contract is most commonly formed through the process of offer and acceptance?

Accepted Answer

Bilateral contract

Answer

Void contract

Answer

Unilateral contract

Answer

Executed contract

Question 22

What is the legal effect of an offer being made 'subject to contract'?

Accepted Answer

The offer is not legally binding until a formal contract is drawn up and signed

Answer

The offer is only binding if it is accepted in writing

Answer

The offer is immediately binding and cannot be withdrawn