Offer and Acceptance: The Foundation of Contract Law

Question 1

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

Accepted Answer

Acceptance by the offeree

Answer

Clear and comprehensive terms

Answer

Intention to create legal relations

Answer

Communication to the offeree

Question 2

Why is intention to create legal relations a key factor in determining the validity of an offer?

Accepted Answer

It shows the parties' desire to be legally bound.

Answer

It defines the offer as social or commercial.

Answer

It adds details to the offer's terms.

Answer

It applies only to written offers.

Question 3

Which of the following is generally **not** considered a reliable method for communicating an offer in contract law?

Accepted Answer

Social media post

Answer

Telephone

Answer

Text message

Answer

Postal mail

Question 4

What is the legal consequence of a counteroffer on the original offer?

Accepted Answer

A counteroffer terminates the original offer.

Answer

A counteroffer alters the conditions of the original offer.

Answer

A counteroffer extends the validity of the original offer until it is accepted.

Question 5

Which of the following is NOT an essential element of a valid offer under English contract law?

Accepted Answer

Acceptance by the offeree

Answer

Clear and unambiguous terms

Answer

Communication to the offeree

Answer

Intention to create legal relations

Question 6

An offer had a time limit of 24 hours for acceptance. If the offeree accepts after this period has passed, what is the legal consequence?

Accepted Answer

The offer is automatically terminated.

Answer

The offer remains open.

Answer

The offeree can still accept the offer.

Question 7

When considering an offer made under duress or undue influence, which of the following most accurately describes the legal implications for the validity of the offer?

Accepted Answer

The offer is voidable at the discretion of the party subjected to duress or undue influence.

Answer

Duress or undue influence automatically renders the offer void.

Answer

An offer made under duress or undue influence remains legally binding.

Question 8

Which of the following is NOT an essential element of an offer in English Contract Law?

Accepted Answer

Acceptance by the offeree

Answer

Intent to create legal relations

Answer

Clarity and certainty

Answer

Communication to the offeree

Question 9

When is an offer considered irrevocable in English Contract Law?

Accepted Answer

When it is made in the form of a deed

Answer

When it is supported by consideration

Answer

When it is made in writing

Answer

When it is accepted by the offeree

Question 10

What is the effect of an invitation to treat in English Contract Law?

Accepted Answer

It is an expression of willingness to negotiate

Answer

It creates a binding contract

Answer

It is an offer that can be accepted

Answer

It is a unilateral contract

Question 11

Which of the following is NOT a way to revoke an offer in English Contract Law?

Accepted Answer

Conditional acceptance by the offeree

Answer

Communicating the revocation to the offeree

Answer

Lapse of time

Answer

Death of the offeror

Question 12

The 'battle of the forms' typically arises when:

Accepted Answer

(a) Both parties use different standard form contracts that contain conflicting terms.

Answer

(d) The contract is for the sale of goods that are not yet in existence.

Answer

(c) The terms of the contract are unclear or ambiguous.

Answer

(b) One party signs a contract, but the other party does not.

Question 13

Which element is essential for an offer to be legally binding?

Accepted Answer

An expression of willingness to be bound by specific terms

Answer

Acceptance by the offeree

Answer

Performance of the contract by the offeror

Question 14

Which of the following is NOT a recognized method of communicating an offer?

Accepted Answer

Implied communication

Answer

Verbal communication

Answer

Written communication

Answer

Electronic communication

Question 15

In the context of the postal rule, when does an acceptance become effective?

Accepted Answer

When the letter of acceptance is properly addressed, stamped, and posted

Answer

When the letter of acceptance is received by the offeror

Answer

When the letter of acceptance is written by the offeree

Question 16

In relation to the communication of acceptance, analyze the significance of the postal rule. Explain any potential exceptions to its application.

Accepted Answer

The postal rule presumes acceptance from the moment the letter is sent, regardless of its arrival.

Answer

The postal rule applies only to written acceptances, excluding electronic or verbal forms.

Answer

The postal rule is absolute and has no exceptions.

Answer

The postal rule only applies if the letter is sent by registered mail.

Question 17

Which of the following is NOT a characteristic of an invitation to treat?

Accepted Answer

It is an offer

Answer

It can be withdrawn at any time

Answer

It invites others to make offers

Answer

It is not intended to be legally binding

Question 18

Which element is NOT essential for an offer to be valid?

Accepted Answer

Acceptance

Answer

Communication

Answer

Intention to create legal relations

Answer

Certainty

Question 19

When can an offer be revoked?

Accepted Answer

Before it is accepted

Answer

Only if it is made in writing

Answer

After it is accepted

Question 20

To what does the postal rule apply?

Accepted Answer

Acceptance of an offer sent by post

Answer

Revocation of an offer sent by post

Answer

Formation of contracts by email

Question 21

What is a key characteristic of bilateral contracts?

Accepted Answer

They require promises from both parties

Answer

They are formed by acceptance of an offer

Answer

They require consideration from only one party

Question 22

What is a key difference between an offer and an invitation to treat?

Accepted Answer

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

Answer

An invitation to treat can be withdrawn before it is accepted, while an offer cannot

Answer

An offer can only be accepted in writing, while an invitation to treat can be accepted verbally

Question 23

What is the "battle of the forms"?

Accepted Answer

A situation where each party to a contract has different standard terms and conditions

Answer

A conflict between common law and statute

Answer

A dispute over consideration

Question 24

Which of the following is a valid method of accepting an offer made by telephone?

Accepted Answer

Verbal communication

Answer

Written communication

Answer

Email

Question 25

Which of the following factors is NOT relevant to the legal validity of an offer?

Accepted Answer

The age of the offeror

Answer

The offeror's intention to create legal relations

Answer

The presence of consideration

Question 26

According to the "mirror image rule", what is the requirement for an effective acceptance?

Accepted Answer

It must exactly match the terms of the offer

Answer

It must be communicated by the same means as the offer

Answer

It must be given in writing

Question 27

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

Accepted Answer

Acceptance by the offeree

Answer

Sufficiently definite terms

Answer

Clear intention to be bound by a contract

Question 28

Which of the following constitutes a valid form of acceptance?

Accepted Answer

Any unambiguous expression of assent to the terms of the offer

Answer

Silence or inaction

Answer

A counter-offer

Question 29

What is the legal effect of a counter-offer on the original offer?

Accepted Answer

It terminates the original offer

Answer

It modifies the original offer

Answer

It has no impact on the original offer

Question 30

Under which condition does an offer become legally irrevocable?

Accepted Answer

When made under seal

Answer

When accepted by the offeree

Answer

Never, an offer can always be revoked

Answer

When made to a specific individual

Question 31

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

Accepted Answer

An invitation to treat seeks offers, while an offer creates a binding contract upon acceptance

Answer

An invitation to treat can be revoked at any time, while an offer cannot

Answer

An invitation to treat is unilateral, whereas an offer is always bilateral

Question 32

What is the legal nature of a unilateral offer?

Accepted Answer

It creates a binding contract upon performance of the requested act

Answer

It can be revoked at any time by the offeror

Answer

It requires acceptance by the offeree before a contract is formed

Question 33

What is the essence of the "mailbox rule" in contract law?

Accepted Answer

Acceptance is legally effective upon dispatch, regardless of whether it is received by the offeror

Answer

Acceptance is effective upon communication to the offeree

Answer

Acceptance is effective upon receipt by the offeror

Question 34

Which of the following communication methods is NOT typically considered valid for communicating an offer in contract law?

Accepted Answer

Telepathy

Answer

Verbal communication (e.g., phone call)

Answer

Written communication (e.g., letter)

Answer

Electronic communication (e.g., email)

Question 35

Which of the following is NOT an essential element that must be present for a valid offer in contract law?

Accepted Answer

Acceptance

Answer

Certainty of terms (i.e., clear and definite)

Answer

Intention to create legal relations (i.e., parties intend to be legally bound)

Answer

Communication to the offeree (i.e., the offer must be communicated to the intended recipient)

Question 36

A statement expressing willingness to negotiate or discuss a potential agreement is known as:

Accepted Answer

An invitation to treat

Answer

A counteroffer

Answer

An offer

Answer

An acceptance

Question 37

An offer can be terminated by all of the following EXCEPT:

Accepted Answer

Acceptance

Answer

Counteroffer by the offeree

Answer

Rejection by the offeree

Answer

Lapse of time (e.g., offer expires)

Question 38

What is the legal effect of a counteroffer made in response to an offer?

Accepted Answer

It terminates the original offer, and a new offer is created.

Answer

It accepts the original offer.

Answer

It has no effect on the original offer.

Answer

It creates a new offer but leaves the original offer open.

Question 39

Which of the following is NOT a generally recognized method for communicating acceptance of an offer in contract law?

Accepted Answer

Telepathy

Answer

Email

Answer

Mail (e.g., letter)

Answer

Verbal communication (e.g., phone call)

Question 40

The 'mailbox rule' in contract law refers to:

Accepted Answer

Acceptance of an offer is effective when it is properly posted, regardless of whether the offeror has received it.

Answer

Acceptance is effective only when it is communicated to the offeror.

Answer

Acceptance is effective only when it is received by the offeror.

Answer

Acceptance is effective only when the offeror becomes aware of it.

Question 41

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

Accepted Answer

A reward offered for the return of a lost pet.

Answer

An offer to sell a specific car at a stated price.

Answer

An offer to sell a product subject to certain conditions.

Answer

An offer to buy a certain quantity of goods at a specific price.

Question 42

What is the key difference between an offer and a request for information?

Accepted Answer

An offer is intended to be binding if accepted, while a request for information is simply seeking further details and does not create legal obligations.

Answer

An offer is more specific than a request for information.

Answer

An offer is more formal than a request for information.