Offer and Acceptance Revisionary Quiz

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Questions and Answers

Which of the following scenarios best exemplifies the application of the objective test in determining the existence of an agreement?

Both parties subjectively believe they have reached an agreement, even though their outward conduct suggests otherwise to a reasonable person.
A party secretly intends to reject an offer but outwardly behaves as if they accept it, leading the other party to believe there is a contract. (correct)
A party initially rejects an offer but later changes their mind and attempts to accept before the offeror revokes, claiming the original rejection was not their true intention.
A party makes a clear and unambiguous offer, but the other party remains silent, leading to an implied acceptance based on industry custom.

The presence of outward agreement invariably indicates a mutual understanding and willingness to enter into a contract, thereby nullifying any need for further assessment.

False (B)

Briefly describe the significance of Lord Blackburn J's statement in Smith v. Hughes regarding the objective test in contract law.

Lord Blackburn J's statement emphasizes that a party's conduct, as perceived by a reasonable person, is more important than their actual intention when determining whether an agreement exists.

An offer demonstrates a __________ to contract on specific terms, indicating that it will become binding upon acceptance.

willingness Signup and view all the answers

Match the indicator of agreement with its description.

Outward Agreement = This refers to the visible or apparent manifestations of consensus between parties, observable through actions like the use of gestures signifying approval. Oral Agreement = This is a spoken agreement made through verbal communication, where parties express their intentions and terms, but are not written. Written Agreement = This is a formal document that details the terms and conditions agreed upon by the parties, providing a tangible record of the agreement. Signup and view all the answers

In contract law, acceptance is best defined as:

The final and unqualified expression of assent to the terms of an offer. (B) Signup and view all the answers

According to contract law, acceptance can only be demonstrated through explicit written statements, not through conduct.

False (B) Signup and view all the answers

What key element distinguishes an 'enquiry' from a 'counteroffer' in contract negotiations?

willingness to contract Signup and view all the answers

In the case of Brogden v. Metropolitan Railway Co., acceptance of the contract was demonstrated through the parties' __________.

conduct Signup and view all the answers

Which of the following actions would be considered a counteroffer, effectively terminating the original offer?

Expressing interest in the offer while suggesting a different price. (A) Signup and view all the answers

Once an offer is made, any question about the terms, no matter how minor, automatically constitutes a counteroffer.

False (B) Signup and view all the answers

Match the following scenarios with their correct legal interpretation in contract law:

A party responds to an offer by proposing a change to the quantity of goods to be purchased. = Counteroffer A party asks for details about the warranty included with a product before accepting the offer. = Enquiry Both parties behave as though a written contract is in effect, fulfilling its terms despite never formally signing it. = Acceptance by Conduct Signup and view all the answers

In contract law, under what conditions is an offer considered legally accepted?

When the offeree communicates unconditional agreement to every element of the offer. (C) Signup and view all the answers

According to the definition established in NTHC Ltd v. Antwi, what is the critical element that defines an offer?

An intention to be bound by specific terms upon acceptance (C) Signup and view all the answers

An invitation to treat demonstrates a definitive willingness to be bound by specific terms immediately upon acceptance.

False (B) Signup and view all the answers

What is the essential distinction between an offer and an invitation to treat regarding the intention to enter into a bargain?

finality Signup and view all the answers

The display of goods in a shop window with prices attached is generally considered an invitation to _______, not an offer.

treat Signup and view all the answers

Match the contract type with its description:

Bilateral Contract = A promise in exchange for another promise, creating mutual obligations. Unilateral Contract = A promise in exchange for the performance of a specific act, with acceptance occurring upon completion of the act. Signup and view all the answers

In a unilateral contract, when does acceptance legally take effect?

Upon complete performance of the stipulated act (C) Signup and view all the answers

In a bilateral contract, both parties are mutually liable from the moment the contract is formed.

True (A) Signup and view all the answers

In the context of contract law, what differentiates a general offer from a specific offer?

audience Signup and view all the answers

Carlill v. Carbolic Smokeball is an example of a _______ offer, highlighting the concept of performing an action in response to a previous offer.

general Signup and view all the answers

Which of the following scenarios best illustrates a unilateral contract?

A company announces a reward of $1,000 for anyone who finds and returns their lost dog. (D) Signup and view all the answers

Which of the following scenarios represents an effective communication of acceptance in contract law?

An offeree verbally agrees immediately upon hearing the offer. (D) Signup and view all the answers

An offeror can legally enforce a contract if the offeree remains silent, but acts in accordance with the contract's terms.

True (A) Signup and view all the answers

Briefly explain why silence is generally not considered a valid form of acceptance, referencing a relevant legal principle.

Silence is generally not a valid form of acceptance because acceptance must be communicated to the offeror. An offeror cannot unilaterally impose a condition that silence constitutes acceptance. Signup and view all the answers

When an offeror specifies a precise method of acceptance, the offeree _____ comply unless an alternative method is equally advantageous and acceptable to the offeror.

must Signup and view all the answers

Match the legal principle with its correct description:

Communication of Acceptance = The principle that acceptance must be made known to the offeror through words or conduct. Prescribed Method of Acceptance = The concept where an offeror specifies the exact means by which acceptance must occur. Effectiveness of Acceptance = The point at which acceptance takes legal effect, often upon receipt by the offeror. Silence as Acceptance = The general rule that an offeror cannot impose a condition that silence equals acceptance. Signup and view all the answers

In what situation can an offeree use a different method of acceptance other than the one originally specified?

The other method is not less advantageous to the offeror and does not compromise safety or speed. (A) Signup and view all the answers

If an offeree keeps silent but honors the terms of a contract where silence was suggested as acceptance, the offeror is legally bound.

True (A) Signup and view all the answers

Describe a scenario where an offeror attempts to use silence as a method of implied acceptance, and explain why a court may not uphold this.

An offeror sends goods to another party with a note stating that if the goods are not returned within a week, it will indicate acceptance of a sale. A court may not uphold this because acceptance requires clear communication, and the offeror cannot impose terms where silence implies consent. Signup and view all the answers

In the case of Felthoude v. Bindley, the uncle's attempt to impose silence as acceptance for the sale of a horse was deemed _____ because acceptance must be affirmatively communicated.

invalid Signup and view all the answers

Which of the following best describes the 'effectiveness of acceptance' in contract law?

The point at which legal effects of the acceptance take place. (C) Signup and view all the answers

Flashcards

Acceptance

Final and unqualified assent to the terms of an offer.

Acceptance by Conduct

Acceptance demonstrated through actions, not just words.