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Introduction to Contract Law: What is a Contract?

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Introduction to Contract Law: What is a Contract?

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Questions and Answers

What distinguishes an agreement from a contract?

Offer and acceptance

Intention, consideration, and legality of purpose (correct)

Presence of legal rights and obligations

Oral or written form

Which elements are necessary for an agreement to constitute a contract?

Legal rights and obligations

Legal formality

Intentions to be legally bound

Offer, acceptance, and consideration (correct)

What is the crucial aspect that makes an offer legally binding?

Implied by Conduct

Acceptance by the other party (correct)

Being orally made

Presence in a written contract

What distinguishes 'puffs' from offers in the context of a contract?

Exaggerated claims and assertions Signup and view all the answers

Which is not a reason that may prevent an agreement from being considered a contract?

Presence of oral terms Signup and view all the answers

What is the primary factor that differentiates an offer from a puff?

'Exaggerated claims' in marketing Signup and view all the answers

In the case of Carlill v Carbolic Smoke Ball Co., what did the court determine about the advertisement offering a reward for using the smoke ball?

The lady's acceptance of the offer created a valid contract. Signup and view all the answers

Why did the court consider the advertisement in Leonard v PepsiCo to be a puff rather than a serious offer?

The advertisement featured an unrealistic scenario, making it clear it was exaggerated. Signup and view all the answers

In Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd, why did the Pharmaceutical Society accuse Boots Chemists of making an offer instead of an invitation to treat?

Boots Chemists failed to supervise the sale of medications as required by law. Signup and view all the answers

What distinguishes an invitation to treat from an offer according to the information provided?

An offer is a serious indication of willingness to enter into a contract, while an invitation to treat is merely an expression of interest in starting negotiations. Signup and view all the answers

Why did the court in Carlill v Carbolic Smoke Ball Co. conclude that the advertisement constituted a genuine offer?

Accepting and using the smoke ball as directed amounted to an acceptance of the offer. Signup and view all the answers

Auctions are typically considered as ________ according to the information provided.

Invitations to treat Signup and view all the answers