Formation and Factors of Contract: Legal Concepts Quiz

An offer is a definite promise to be bound on certain terms, while an invitation to treat is merely an invitation to others to make offers or submit tenders.

In a unilateral contract, the offeree can only be forced to agree to the offer if they perform the requested action, thereby accepting the offer through their conduct.

In Harvey v Facey, the Privy Council held that the second telegram was not an offer, but merely an indication of the minimum price if the defendants ultimately resolved to sell. This distinguished the supply of information from a binding offer.

<p>If it is difficult or impossible to analyze a transaction in terms of offer and acceptance, NZ courts may adopt an 'objective' or 'global' approach. This involves considering the dealings as a whole from the perspective of reasonable persons on both sides to determine whether a concluded bargain was reached.</p> Signup and view all the answers

<p>The three main options an offeree has in response to an offer are: 1) Accept the offer, 2) Reject the offer, or 3) Make a counter-offer.</p> Signup and view all the answers

<p>For a valid acceptance of an offer, the acceptance must be: 1) Final and unqualified, 2) Made in the manner specified or indicated by the offeror, and 3) May be oral, written, or by conduct.</p> Signup and view all the answers

<p>The 'freedom of contract' principle allows parties to freely negotiate and agree to contract terms without external interference.</p> Signup and view all the answers

<p>A standard form contract is one where the terms are set by one party and the other party has little or no opportunity to negotiate. It may be considered unfair due to the lack of bargaining power for one side, who essentially must 'take it or leave it'.</p> Signup and view all the answers

<p>The key elements are: 1) An offer was made, 2) The offer was accepted, 3) Acceptance was communicated, 4) The terms are certain, and 5) The agreement is not conditional.</p> Signup and view all the answers

<p>An offer is a statement made with the intention to create legal relations if accepted. An 'invitation to treat' is a preliminary statement that merely invites others to make an offer. For example, advertising goods for sale is an invitation to treat, while a customer making an offer to purchase is potentially an offer.</p> Signup and view all the answers

<p>The court held that while excessive or far-fetched statements are generally considered 'mere puffs', the company's claim that its product could prevent influenza was a valid offer based on the specific terms and reward stated, which could create legal relations if accepted.</p> Signup and view all the answers

<p>Statutory reform, through the enactment of legislation by Parliament, has substantially influenced and shaped the development of contract law in New Zealand.</p> Signup and view all the answers