Deck 8: Agreement Between the Parties

Question 1

If an offer and acceptance cannot be identified, there can never be a contract.

Answer 1

False

Question 2

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

Answer 2

In relation to an invitation to treat, the rules relating to offer and acceptance are varied. An invitation to treat is not an offer, but rather is an offer to consider offers. This is because the person making the statement does not intend their words or conduct to constitute an offer, such as in the case of advertisements. Other examples include auctions, catalogues, price lists and the like, automatic vending machines and ticket dispensing machines. In the case of an offer, the person making the offer does intend to be bound by the offer. In other words, if it is clear in the circumstances that a party intends their words or conduct to constitute an offer, such as in Carlill v Carbolic Smokeball, then the courts will construe it as an offer.

Question 3

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

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.

Answer 3

A

Question 4

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

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 5

Which of the following actions or conduct is NOT a requirement of a valid offer?

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 6

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

A) The revocation must take place prior to acceptance of the offer by the offeree.
B) The offeree must be made aware of the revocation of offer.
C) The offeror must give notice of the revocation to the offeree.
D) The offeror must sign and date the revocation of offer.

Question 7

In relation to contract law an invitation to treat is best described as:

A) An offer to accept an offer.
B) An offer.
C) An offer to offer an offer.
D) An offer to consider offers.

Question 8

In Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, the advertisement placed by the company was:

A) An offer.
B) A statement of intention.
C) An invitation to treat.
D) None of the above.

Question 9

An offer may be made to the world at large.

Question 10

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

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!'.

Question 11

When goods are sold by tender, the offer is accepted and the contract is formed:

A) According to the terms on which the invitation to tender is made.
B) As soon as the announcement is made by the seller.
C) When the tenderer accepts the sellers offer by submitting a tender.
D) When the seller accepts the tenderer's offer by accepting the tender.

Question 12

In order to be contractually binding on the parties, an agreement:

A) May arise by implication as a result of the conduct of the parties.
B) Must be expressed in writing and signed.
C) Must be expressed in writing but need not be signed in all cases.
D) Must be either expressed in writing or expressed verbally.

Question 13

The offeror is the person making the offer.

Question 14

An offer is NOT terminated by:

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 15

If an agreement is made between two parties of unequal bargaining power:

A) The court will not enforce the agreement.
B) The court will nevertheless enforce the agreement.
C) The court will not enforce the agreement if the pressure used by the stronger party was unconscionable.
D) The court will only enforce the agreement if the weaker party could have chosen to deal with another person, but did not do so.

Question 16

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

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 17

What is the purpose of an option?

Question 18

It is important to identify when parties have reached agreement because:

A) A contract comes into existence once agreement is reached.
B) The terms and conditions agreed to create legally enforceable rights.
C) It helps to determine the time and place of the contract.
D) All of the above.

Question 19

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:

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 20

Breach of an agreement which is NOT actually a contract:

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.

Question 21

When you purchase goods at an online auction, who makes the offer, who accepts the offer, and when and where is the contract formed?

Question 22

Only the person or persons to whom an offer is made are capable of accepting the offer.

Question 23

Under the electronic Transactions Act 1999 (Cth), a contract is formed:

A) When the acceptance is sent to the offeror's email address.
B) When the acceptance is received at the server specified by the offeror.
C) When the offeror reads the offeree's email.
D) When the offeree's email is opened and printed out.

Question 24

What is the correct name for a term in an agreement which provides that the agreement will terminate upon the happening of a certain event?

A) A condition precedent.
B) A condition consequent.
C) A condition subsequent.
D) A condition antecedent.

Question 25

If the postal rule applies, the contract is made at the place where the letter of acceptance is received.

Question 26

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?

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

Question 27

According to the postal rule:

A) An acceptance will only be effective 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 28

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

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 29

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?

Question 30

Email is an example of instantaneous communication.

Question 31

List the ways in which an offer may be terminated.

Question 32

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

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.