Offer and Acceptance: Essential Elements and Communication in Contract Formation

Question 1

The postal rule states that:

Accepted Answer

An acceptance is effective upon dispatch

Answer

An acceptance is effective upon receipt

Answer

An offer is effective upon dispatch

Answer

An offer is effective upon receipt

Question 2

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

Accepted Answer

Consideration (exchange of value)

Answer

Intent to create legal relations

Answer

Certainty and completeness of terms

Answer

Communication to the person to whom the offer is directed (offeree)

Question 3

What is the legal effect of a unilateral offer in contract law?

Accepted Answer

It creates a binding contract upon the performance of the requested act

Answer

It creates a binding contract upon acceptance of the offer

Answer

It is not enforceable unless it is supported by consideration (exchange of value)

Answer

It is not a valid offer

Question 4

Identify the element that is NOT essential to constitute a valid offer.

Accepted Answer

Consideration (except for unilateral contracts)

Answer

Expression of present intention to be bound

Answer

Communication to a specific party or the public

Answer

Sufficient certainty for legal enforceability

Question 5

Which of these effectively constitutes acceptance of an offer?

Accepted Answer

Performing the requested action or remaining silent

Answer

Rejecting the offer and then performing its terms

Answer

Proposing an offer to accept the original offer

Answer

Submitting a counter-offer

Question 6

Identify the contract type that involves a promise to keep an offer open for a specified period.

Accepted Answer

Option contract

Answer

Offer to sell goods at a fixed price for a specific time

Answer

Contract for land purchase

Answer

Contract for service provision

Question 7

In unilateral contracts, acceptance takes the form of:

Accepted Answer

Performing the requested action

Answer

Communicating acceptance to the offeror

Answer

Providing consideration in the form of a promise

Answer

Partially performing the action by the offeree

Question 8

In contract law, which of the following is NOT considered a valid form of consideration?

Accepted Answer

An unfulfilled promise

Answer

Payment of money

Answer

Transfer of goods

Answer

Performance of services

Question 9

Which of the following is NOT essential for an offer to be valid?

Accepted Answer

It must be in writing.

Answer

It should be communicated to the offeree.

Answer

It must specify all the material terms of the contract.

Answer

It must be clear and unambiguous.

Question 10

Which of the following is a valid method of acceptance?

Accepted Answer

(B) and (C).

Answer

Silence.

Answer

Conduct.

Answer

Part performance.

Question 11

In unilateral contracts:

Accepted Answer

The offeror offers a promise in exchange for an act.

Answer

The offeree offers a promise in exchange for a promise.

Answer

(A) and (B).

Answer

Neither (A) nor (B).

Question 12

When is a communication of acceptance effective?

Accepted Answer

When it is received by the offeror.

Answer

When it is sent by the offeree.

Answer

When it is both sent and received.

Answer

When it is posted.

Question 13

Which of the following is an example of an implied offer?

Accepted Answer

A display of goods in a shop window.

Answer

An advertisement in a newspaper.

Answer

A letter from a friend.

Answer

A verbal promise.

Question 14

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

Accepted Answer

Acceptance

Answer

Certainty and completeness

Answer

Intention to create legal relations

Answer

Communication to the offeree

Question 15

When is an offer effectively communicated to the offeree?

Accepted Answer

When the offeree has the opportunity to become aware of it

Answer

When the offeror sends it

Answer

When the offeree accepts it

Question 16

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

Accepted Answer

By silence

Answer

By words

Answer

By conduct

Answer

By a combination of words and conduct

Question 17

What is the legal effect of an acceptance that is conditional or varies the terms of the offer?

Accepted Answer

It amounts to a counteroffer

Answer

It is a valid acceptance

Answer

It terminates the original offer

Answer

It creates a new contract

Question 18

Which of the following is NOT considered an essential element of a valid offer in contract law?

Accepted Answer

Consideration

Answer

Communication to the offeree

Answer

Certainty and completeness

Answer

Intention to create legal relations

Question 19

An offer is communicated when:

Accepted Answer

It is received by the intended recipient.

Answer

It is accepted by the offeree.

Answer

It is drafted by the offeror.

Answer

It is sent by the offeror.

Question 20

Which of the following is a generally recognized valid mode of acceptance in contract law?

Accepted Answer

Express acceptance, communicated in a clear and unambiguous way.

Answer

Mental acceptance, where the offeree silently agrees.

Answer

Acceptance by silence, where the offeree's inaction is interpreted as acceptance.

Answer

Conditional acceptance, where the acceptance is subject to specific terms.

Question 21

Regarding the revocation of an offer, which statement is accurate?

Accepted Answer

An offer can be revoked at any time before it is accepted, even if a time limit for acceptance was initially specified.

Answer

An offer can only be revoked if the offeror provides a reason for revocation.

Answer

An offer can only be revoked if it is done in writing.

Answer

An offer cannot be revoked once it is communicated.

Question 22

The 'mailbox rule' in contract law states that:

Accepted Answer

Acceptance is effective when the acceptance letter is properly posted by the offeree, even if it is not received by the offeror immediately.

Answer

Acceptance is effective only when the offeror receives the acceptance letter.

Answer

Acceptance is effective when the offeror is notified of the acceptance by any means.

Question 23

What is the primary difference between an invitation to treat and a legally binding offer?

Accepted Answer

An invitation to treat is a mere expression of willingness to negotiate or enter into discussions, while a binding offer indicates a definite promise to be bound upon acceptance.

Answer

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

Answer

An invitation to treat is only valid for a specific period of time, while an offer is valid indefinitely.

Question 24

Which of the following is a classic example of a unilateral offer?

Accepted Answer

A reward offered for finding a lost pet.

Answer

An offer to sell a specific item at a particular price.

Answer

A promissory offer to pay a debt.

Answer

A tender offer for a contract.

Question 25

Acceptance 'subject to contract' generally signifies that:

Accepted Answer

The parties intend to be bound only when a formal contract is signed, although they may be bound by some terms even before signing.

Answer

The parties have formed a legally binding contract without the need for further formalities.

Answer

The parties are not bound at all, and there is no intention to form a contract.

Question 26

The legal basis for the principle of caveat emptor in contract law is:

Accepted Answer

The buyer is expected to inspect the goods and take responsibility for any defects that are readily apparent or could have been discovered through reasonable inspection.

Answer

The buyer is protected by implied warranties, regardless of their own inspection.

Answer

The seller is obligated to provide a warranty covering all defects in the goods.