Auction Conditions and Offers

Play an AI-generated podcast conversation about this lesson

In auctions with reserve, what must the bid be higher than?

The reserve price (correct)

The auctioneer's commission

The starting bid

The estimated value of the item

When is an offer considered accepted in an auction?

When the auctioneer announces the item sold

When the highest bidder makes a payment

When the hammer falls (correct)

When the auction begins

What happens when a counter offer is made in contract law?

It invalidates the original offer

It creates a new offer with different terms (correct)

It extends the validity of the original offer

It leads to an immediate sale

What act outlines requirements for notice and auctioneer/owner participation in bids for auctions with reserve?

Consumer Protection Act, Section 45.4 Signup and view all the answers

How are offers terminated in contract law?

By counter offer Signup and view all the answers

What determines when offers may be terminated?

The time elapsed since the offer was made Signup and view all the answers

What is the 4th requirement for a valid acceptance in contract law?

Specific form prescribed by the offeror Signup and view all the answers

In contract law, who is the one that sets the terms for acceptance?

Offeror Signup and view all the answers

What theory states that a contract comes into being at the place where the letter of acceptance was posted?

Expedition theory Signup and view all the answers

When does a contract come into being according to the declaration theory?

At the place and time when acceptance is expressed Signup and view all the answers

What is crucial in determining if a prescribed method of acceptance is the only method in a contract?

Timing of acceptance Signup and view all the answers

Which theory is particularly relevant to postal contracts in South African law?

Expedition theory Signup and view all the answers

What is the second requirement for acceptance of an offer?

The acceptance must be made by the person to whom the offer was directed. Signup and view all the answers

In the context of option contracts, what is the process known as when a person transfers the right of acceptance to a third party?

Sessionary Signup and view all the answers

What was established in the case of Baird versus Somerville and another regarding offers made to specific persons?

An offer made to a specific person can only be accepted by that specific person. Signup and view all the answers

Why could the respondent in the case of Blum versus the American Swiss Watch Company not recover a reward offered by the company?

Because they provided information without being aware of the existence of the reward offer. Signup and view all the answers

What requirement does the text emphasize regarding acceptance in order for a contract to be formed?

Both parties must be aware of the offer and consciously accept it. Signup and view all the answers

Why is joint acceptance by multiple individuals not permissible as per the text?

It violates legal principles of acceptance. Signup and view all the answers

According to the postal rule theory, when is an acceptance of a contract deemed to be accepted?

At the place and time when it was posted Signup and view all the answers

In South Africa, in general, when does a contract come into being according to the prevailing theory?

When the acceptance is communicated to the offeror's mind Signup and view all the answers

What is true about the termination of an offer?

A contract is deemed concluded if the offeree accepts the offer before being aware of the revocation. Signup and view all the answers

Which theory applies to contracts concluded by electronic means?

Reception theory Signup and view all the answers

For contracts concluded by telephone or fax, which theory is followed according to South African law?

Information theory Signup and view all the answers

What is required for a valid acceptance according to the text?

It must be unqualified and clear assent to all terms in the offer. Signup and view all the answers

Which theory applies to agreements concluded by data message?

Perception theory Signup and view all the answers

When does revocation of an offer become effective?

Once it has been communicated to the offerer. Signup and view all the answers

What is the exception to the general rule in South Africa regarding when a contract comes into being?

Contracts concluded by post Signup and view all the answers

What happens if an acceptance contains new terms different from the original offer?

It does not constitute a valid acceptance and no contract is concluded. Signup and view all the answers

Under what circumstances can an offer be terminated by revocation?

When the offeree has already accepted the offer. Signup and view all the answers

What can lead to a termination of an offer based on legal capacity?

The offeror losing legal capacity before the offeree accepts. Signup and view all the answers