Contracts: Valid, Void, and Voidable
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Questions and Answers

What information must catalog marketing agreements provide to consumers?

  • Supplier's marketing strategies
  • Supplier's name, license or registration number, physical address, and refund policy (correct)
  • Supplier's social media accounts
  • Supplier's phone number and email address
  • Which of the following is considered an invitation to do business and not a valid offer?

  • An offer for a reward
  • An auction
  • An offer made to a specific person
  • An advertisement (correct)
  • What must determine if a statement constitutes an offer?

  • The font size of the statement
  • The number of words in the statement
  • The color scheme used in the advertisement
  • The intention behind the statement or the reasonable impression it creates (correct)
  • Which act prohibits misleading or deceptive advertising of goods and services?

    <p>Consumer Protection Act</p> Signup and view all the answers

    In the case of Crowley versus Reicks, what did the advertisement for cheap tobacco constitute?

    <p>An intention to sell at the advertised price</p> Signup and view all the answers

    According to Smith Jay's observations, what is an advertisement considered?

    <p>An invitation to do business</p> Signup and view all the answers

    What is a characteristic of void contracts?

    <p>They contain a legal flaw</p> Signup and view all the answers

    What must be present for a contract to be valid?

    <p>Consensus on all terms</p> Signup and view all the answers

    What is the result of a voidable contract?

    <p>It contains a legal flaw to the disadvantage of one party</p> Signup and view all the answers

    What is the role of consensus in contract formation?

    <p>To ensure agreement on material aspects</p> Signup and view all the answers

    Which tool helps establish whether consensus has been reached in a contract?

    <p>Offer and acceptance analysis</p> Signup and view all the answers

    In what circumstances can silence signify agreement in contract formation?

    <p>When previous dealings make it reasonable to interpret as acceptance</p> Signup and view all the answers

    What is the term used when a person transfers the right of acceptance to a third party under an option contract?

    <p>Session</p> Signup and view all the answers

    According to the information provided, what was the outcome in the case of Baird versus Somerville and another regarding acceptance?

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

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

    <p>The respondent was not aware of the existence of the reward offer.</p> Signup and view all the answers

    Which of the following statements about acceptance under an option contract is true?

    <p>Acceptance must always be a conscious response to the offer.</p> Signup and view all the answers

    In the context provided, which of the following is NOT a requirement for a valid acceptance?

    <p>Joint acceptance by multiple individuals</p> Signup and view all the answers

    What is necessary for a contract to be formed according to the information provided?

    <p>Awareness and conscious acceptance of an offer</p> Signup and view all the answers

    When is an offer considered complete in an auction?

    <p>When the hammer falls</p> Signup and view all the answers

    What happens in auctions without reserve?

    <p>The auctioneer accepts the highest bid</p> Signup and view all the answers

    How are offers terminated in contract law?

    <p>By accepting a counter offer</p> Signup and view all the answers

    What distinguishes auctions with reserve from auctions without reserve?

    <p>The presence or absence of a reserve price</p> Signup and view all the answers

    Who makes an offer in auctions with reserve?

    <p>The auctioneer</p> Signup and view all the answers

    When can an offer in an auction be terminated due to a counter offer?

    <p>When a qualified acceptance is given</p> Signup and view all the answers

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

    <p>When it is posted</p> Signup and view all the answers

    Which theory applies to contracts concluded by electronic means?

    <p>Reception theory</p> Signup and view all the answers

    According to the information theory, when does a contract come into being?

    <p>When the acceptance is read by the offeror</p> Signup and view all the answers

    In South Africa, which theory is generally followed to determine when a contract comes into being?

    <p>Information theory</p> Signup and view all the answers

    In which situation does the expedition theory apply?

    <p>Postal contracts</p> Signup and view all the answers

    Which theory applies to agreements concluded by data message?

    <p>Perception theory</p> Signup and view all the answers

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