Contracts and Sales Quiz

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What is the central notion of a contract?

Legal dispute resolution

Promise enforcement

Exchange of goods

Concept of bargain (correct)

According to Sir Federick Pollock, a contract is:

An enforceable promise

A binding agreement

A legal obligation

A promise or set of promises enforceable by law (correct)

Which of the following is NOT an element of a valid contract?

Mutual trust (correct)

Capacity to enter into a contract

Consideration

Intention to create legal relations

What is required to form a valid offer in a contract?

Statement of intention to be bound on certain terms Signup and view all the answers

In a valid contract, what follows a valid offer?

Acceptance Signup and view all the answers

Which of the following is essential for a promise to be enforceable in law?

Legal capacity of the parties Signup and view all the answers

When an advertisement states that goods will be put up for auction, what does this signify?

It does not constitute an offer to any person that the goods will actually be put up. Signup and view all the answers

In an auction sale without a reserve price, what does it signify when someone places the highest bid?

The bid is considered an offer to purchase the goods. Signup and view all the answers

In WARLOW v HARRISON (1859), what was the outcome when the Plaintiff bid for a pony at an auction 'without reserve'?

The pony was sold to the owner of the pony. Signup and view all the answers

What did Baron Martin conclude in WARLOW v HARRISON regarding the auction 'without reserve'?

There is a contract between the auctioneer and the Plaintiff. Signup and view all the answers

What type of auction sale allows the auctioneer to set a minimum price below which they will not sell an item?

Auction sale with a reserve price Signup and view all the answers

What did the court emphasize about a valid offer in the case of NTHC Ltd v Antwi SCGLR 117, 125?

It must be communicated to the offeree for acceptance or rejection. Signup and view all the answers

In Taylor v Laird (1856), why did the owners of the ship not have to pay for the master's assistance?

The master's offer to assist was not communicated to them. Signup and view all the answers

How can an offer be communicated according to the text?

Orally or by conduct. Signup and view all the answers

What was the offer made by the Carbolic Smoke Ball Company in Carlill v Carbolic Smoke Ball Company (1893)?

£100 to any person who used their smoke ball and succumbed to influenza. Signup and view all the answers

What is essential for an offer to be considered valid?

Communication to the offeree for acceptance or rejection. Signup and view all the answers

In what situation did the court rule against paying for assistance in Taylor v Laird (1856)?

The offeror did not communicate the offer of assistance. Signup and view all the answers

When is an auction sale considered complete?

When the auctioneer announces its completion by the fall of the hammer Signup and view all the answers

What happens if a bid is retracted before the auctioneer's announcement of completion?

The seller can withdraw the goods Signup and view all the answers

Under what condition can a seller or their representative make a bid at an auction?

If they reserve the right to do so Signup and view all the answers

What is the significance of a sale being expressed as 'without reserve' in an auction?

The highest bona fide bidder must be allowed to buy at the bid price Signup and view all the answers

What can a seller do if an auction is notified to be subject to a reserve price?

Only make one bid openly Signup and view all the answers

In an auction where goods are put up for sale in lots, how are these lots considered in terms of sale contracts?

Each lot is considered separate contracts Signup and view all the answers