Question 1

Breach of a non-contractual agreement:

Accepted Answer

A)  may lead to an action for breach of contract by the injured party.
B)  will be of no legal consequence.
C)  may still be a breach of consumer protection legislation.
D)  will lead to criminal penalty. C

Question 2

Email is an example of instantaneous communication.

Accepted Answer

A) True 
 B)False  False

Question 3

According to the postal rule,where the parties contemplate the use of the post as a method of communication,an acceptance is effective as soon as it is posted.Why do you think the courts originally developed this rule? Do you think those reasons are still valid today?

Accepted Answer

The postal rule was originally developed by the courts to provide a clear and practical solution for determining the moment at which a contract is formed when parties are communicating through the mail. This rule was established at a time when the postal service was the primary method of long-distance communication, and it was necessary to have a standard for determining when an acceptance sent through the post would be considered effective.

The courts likely developed this rule to promote certainty and fairness in contract formation. By establishing that an acceptance is effective as soon as it is posted, the rule provides a clear and objective moment at which a contract is formed, regardless of when the acceptance is actually received by the offeror. This helps to prevent disputes and uncertainty regarding the timing of contract formation, and it also ensures that both parties are bound by the terms of the contract at the same time.

In today's digital age, the reasons for the development of the postal rule may not be as relevant as they once were. With the prevalence of instant communication methods such as email and messaging apps, parties can often communicate and receive acceptances in real-time. However, the postal rule may still be valid in certain situations where parties specifically contemplate the use of the post as a method of communication. In these cases, the rule continues to provide a practical and objective standard for determining the moment at which a contract is formed, promoting certainty and fairness in contract law. Ultimately, the continued validity of the postal rule may depend on the specific circumstances and preferences of the parties involved.

Question 4

As a general rule,an offer may be directed to the world at large.

Accepted Answer

A) True 
 B)False

Question 5

In the case of Dickinson v Dodds [1876] 2 Ch D 463,it was held that an offer can be revoked:

Accepted Answer

A)  by the offeror sending an email to the offeree.
B)  only by the offeror telling the offeree that the offer has been withdrawn.
C)  by the offeree learning from a reliable source that the offer has been revoked.
D)  by a letter despatched to the offeree.

Question 6

If an offer is made by facsimile and no method of acceptance is specified by the offeror,which of the following methods of acceptance would NOT be effective?

Accepted Answer

A)  Email.
B)  Telephone.
C)  Facsimile.
D)  Post.

Question 7

In order to reach a legally enforceable agreement,the parties to an agreement:

Accepted Answer

A)  need only reach broad agreement on the substance of the contract.
B)  must agree to more than just the substance of the contract.
C)  must expressly agree to every term of the agreement.
D)  cannot leave any details to be worked out later.

Question 8

The offeror is the person making the offer.

Accepted Answer

A) True 
 B)False

Question 9

An offer is NOT terminated by:

Accepted Answer

A)  a counter-offer by the offeree.
B)  a request for more information by the offeree.
C)  a rejection of that offer by the offeree.
D)  a qualified acceptance by the offeree.

Question 10

Explain the difference between an offer and an invitation to treat.

Accepted Answer

The answer of Explain the difference between an offer and...

Question 11

The decision in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist (Southern)Limited [1953] 1 QB 401 means that when a customer shops at a supermarket,the offer is accepted and the contract is formed:

Accepted Answer

A)  as soon as the customer enters the supermarket.
B)  at the checkout,when the customer accepts the supermarket's offer to sell the goods.
C)  when the customer accepts the goods on offer on the shelves by placing them in their basket.
D)  at the checkout,when the supermarket accepts the customer's offer to buy the goods.

Question 12

In respect to a purported contract an offer made to a person is ineffective if:

Accepted Answer

A)  it is made to a group of people without specifying who in the group can accept the offer.
B)  it is not brought to the notice of the person to whom it is directed.
C)  it is made to the whole world.
D)  it is not made in writing.

Question 13

For contracts formed online,a business should include a choice of jurisdiction clause.

Accepted Answer

A) True 
 B)False

Question 14

Describe an option contract's main objective and the requirements for creating one.

Accepted Answer

The answer of Describe an option contract's main objective and...

Question 15

According to the postal rule:

Accepted Answer

A)  an acceptance will only be effective if it is sent by post.
B)  revocation of an offer is effective as soon as it is posted.
C)  offer and acceptance are only effective when received.
D)  an acceptance will be effective if it is sent by post or a faster method.

Question 16

What are the scenarios in which an offer may be terminated?

Accepted Answer

The answer of What are the scenarios in which an...

Question 17

A promise to 'keep an offer open' for a specified period:

Accepted Answer

A)  is not enforceable unless made in writing.
B)  is not enforceable.
C)  is not enforceable unless supported by the offeree's consideration.
D)  is not enforceable unless supported by the offeror's consideration.

Question 18

A valid offer does NOT require which of the following?

Accepted Answer

A)  The offer must be kept open if supported by consideration.
B)  The offer must be more than a request for information.
C)  The offer must be made to a specific offeree.
D)  All terms must be brought to the notice of the offeree and followed exactly.

Question 19

Which of the following is NOT a requirement of a valid acceptance to an offer?

Accepted Answer

A)  The acceptance must be absolute and unqualified.
B)  The acceptance must be expressed verbally or in writing.
C)  The acceptance must be strictly in accordance with the terms of the offer.
D)  The acceptance must be made in reliance on the offer.

Question 20

Which of the following situations is likely to be seen as an offer rather than as a mere invitation to treat?

Accepted Answer

A)  A poster advertising Business Law at a reduced price.
B)  An email containing the question 'Can I buy your copy of Business Law for $50?'
C)  A copy of Business Law in the window of a book shop with a price tag attached to it.
D)  A catalogue containing a description of Business Law and the statement 'Special offer!'.

Exam 7: Agreement Between the Parties

Breach of a non-contractual agreement:

Email is an example of instantaneous communication.

According to the postal rule,where the parties contemplate the use of the post as a method of communication,an acceptance is effective as soon as it is posted.Why do you think the courts originally developed this rule? Do you think those reasons are still valid today?

As a general rule,an offer may be directed to the world at large.

In the case of Dickinson v Dodds [1876] 2 Ch D 463,it was held that an offer can be revoked:

If an offer is made by facsimile and no method of acceptance is specified by the offeror,which of the following methods of acceptance would NOT be effective?

In order to reach a legally enforceable agreement,the parties to an agreement:

The offeror is the person making the offer.

An offer is NOT terminated by:

Explain the difference between an offer and an invitation to treat.

The decision in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist (Southern) Limited [1953] 1 QB 401 means that when a customer shops at a supermarket,the offer is accepted and the contract is formed:

In respect to a purported contract an offer made to a person is ineffective if:

For contracts formed online,a business should include a choice of jurisdiction clause.

Describe an option contract's main objective and the requirements for creating one.

According to the postal rule:

What are the scenarios in which an offer may be terminated?

A promise to 'keep an offer open' for a specified period:

A valid offer does NOT require which of the following?

Which of the following is NOT a requirement of a valid acceptance to an offer?

Which of the following situations is likely to be seen as an offer rather than as a mere invitation to treat?