Contract Law Basics

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What is a characteristic of a valid offer?

It must be made with the intention of not concluding a contract

It can be made to the public at large

It can be ambiguous and unclear

It must be communicated to a particular person or persons (correct)

What happens when an auctioneer accepts an offer at an auction?

The auctioneer rejects all other bids

The auctioneer makes a new offer to the highest bidder

A contract is concluded and the sale is finalized (correct)

The bidder can withdraw their offer

What is the main difference between a quote and a tender?

A quote is an invitation to treat, while a tender is an offer

A quote is an offer, while a tender is an invitation to treat (correct)

A quote is only used in auctions, while a tender is used in business

A quote is used in business, while a tender is used in auctions

What happens to an offer if it is not accepted?

It can be revoked by the offeror Signup and view all the answers

What is the purpose of the Consumer Protection Act 68 of 2008?

To protect consumers from incorrect price displays Signup and view all the answers

What is the purpose of a reserve price in an auction?

To set a minimum price that must be exceeded Signup and view all the answers

Where is a contract concluded according to the Information Theory?

Where and when the offeror is informed of acceptance Signup and view all the answers

What is the condition for the Postal Theory to apply?

The offer must be made by post and in the normal run of business Signup and view all the answers

When does the contract conclude according to the Postal Theory?

When the acceptance is posted Signup and view all the answers

What is the time period within which 'A must pay'?

14 days from conclusion of the contract Signup and view all the answers

What is the requirement for acceptance in the Postal Theory?

The acceptance must be made via the post Signup and view all the answers

What is the significance of the 15th of January in the Information Theory example?

The day the offeror was informed of the acceptance Signup and view all the answers

What is an exception to the postal rule?

Revoking acceptance by a faster medium of communication Signup and view all the answers

What is the main difference between the postal rule and the receipt theory?

The postal rule considers the time of posting, while the receipt theory considers the time of receipt Signup and view all the answers

What determines the time of receipt according to the Electronic Communications and Transactions Act?

When the message enters the addressee's information system Signup and view all the answers

Where is a contract considered concluded according to the Electronic Communications and Transactions Act?

At the usual place of business or residence of the offeror Signup and view all the answers

What is the significance of the date on which the message is received in the offeror's inbox?

It is the date on which the contract is deemed concluded Signup and view all the answers

What is a possible consequence of the receipt theory?

The contract is concluded without the offeror's knowledge Signup and view all the answers

What is the effect of a valid acceptance on an offer?

A contract comes into existence Signup and view all the answers

Which of the following is a requirement for a valid acceptance?

The acceptance must be communicated to the offeror Signup and view all the answers

What is the result of an enquiry about the terms of an offer?

It is not an acceptance Signup and view all the answers

When does a contract come into existence?

When the acceptance is made Signup and view all the answers

What is the significance of the time and place of acceptance?

It determines the jurisdiction of the court Signup and view all the answers

What is the difference between a partial acceptance and a valid acceptance?

A partial acceptance requires additional information Signup and view all the answers

According to the reliance theory, what is required for a contract to be in existence?

Reasonable reliance on the conduct of the other party Signup and view all the answers

What is the term for a reasonable, material mistake that excludes consensus and makes the contract void?

Iustus error Signup and view all the answers

What makes a mistake material in a contract?

All of the above Signup and view all the answers

What happens if the mistaken party's material mistake is not reasonable?

The contract is deemed to be valid Signup and view all the answers

What is the key difference between the reliance theory and the will theory?

The reliance theory allows for a contract to exist without consensus Signup and view all the answers

What is required for a person to reasonably rely on the conduct of another party?

The conduct must be reasonable and believable Signup and view all the answers