Podcast
Questions and Answers
When is an offer considered valid?
When is an offer considered valid?
- When it is communicated to the party to whom it is made (correct)
- When it precedes an acceptance
- When the terms are filled by the offeror
- When it is accepted before being made
According to section 4 para 2, when is communication of acceptance considered complete?
According to section 4 para 2, when is communication of acceptance considered complete?
- When the proposer has knowledge of the acceptance
- When the acceptor puts the acceptance in translation (correct)
- When the proposer communicates the offer
- When the acceptor reads the offer
What is required for the communication of acceptance to be complete under section 4?
What is required for the communication of acceptance to be complete under section 4?
- Filling in free terms of the promise
- Silence from the acceptor
- Posting the letter of acceptance correctly adjusted and sufficiently stamped (correct)
- Reading the acceptance by the proposer
When can a proposal be revoked as per section 5 para 1?
When can a proposal be revoked as per section 5 para 1?
What must be done for a revocation to be considered complete as per section 4 para 3?
What must be done for a revocation to be considered complete as per section 4 para 3?
What signifies completion of acceptance in postal transit according to the text?
What signifies completion of acceptance in postal transit according to the text?
What is necessary for an offer to be valid?
What is necessary for an offer to be valid?
What does an acceptance of an offer indicate?
What does an acceptance of an offer indicate?
Why is a statement of price not considered an offer?
Why is a statement of price not considered an offer?
What is required for acceptance to be binding according to legal rules?
What is required for acceptance to be binding according to legal rules?
What happens if an acceptance is not according to the mode prescribed in the offer?
What happens if an acceptance is not according to the mode prescribed in the offer?
Why must an acceptance be communicated within a reasonable time?
Why must an acceptance be communicated within a reasonable time?
What is required for an offer to be considered capable of giving rise to a legal relationship?
What is required for an offer to be considered capable of giving rise to a legal relationship?
Which of the following is not necessary for an invitation to make an offer?
Which of the following is not necessary for an invitation to make an offer?
What distinguishes an invitation to make an offer from an actual offer?
What distinguishes an invitation to make an offer from an actual offer?
Which of the following is NOT a requirement for an agreement to be enforceable by Law?
Which of the following is NOT a requirement for an agreement to be enforceable by Law?
In the context of offer and acceptance, what does the capacity of parties refer to?
In the context of offer and acceptance, what does the capacity of parties refer to?
Which type of offer is made to the world at large?
Which type of offer is made to the world at large?
What is the key factor that differentiates an express offer from an implied offer?
What is the key factor that differentiates an express offer from an implied offer?
'An agreement suffers from any legal flaw it would not be enforceable by Law.' Which principle does this statement relate to?
'An agreement suffers from any legal flaw it would not be enforceable by Law.' Which principle does this statement relate to?
What does it mean for consent in a contract to be 'free'?
What does it mean for consent in a contract to be 'free'?
Why must an offer be definite and unambiguous?
Why must an offer be definite and unambiguous?
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Study Notes
Essential Elements of a Valid Contract
- Acceptance must be according to the most prescribed and must be communicated to the offeror
- Intention to create legal relationship: when two parties enter into an agreement, their intention was to create legal relations between them
- Lawful consideration: an agreement to be enforceable by Law must be supported by consideration, which means an advantage or benefit moving from one party to the other
- Capacity of parties: the parties to the agreement must be capable of entering into a valid contract
- Free and genuine consent: essential to the creation of every contract that there might be free and consent of the parties to an agreement
- Lawful object: the object of an agreement must be lawful and not illegal, immoral, or opposed to public policy
- Certainty and possibility of performance: the agreement must be ascertained and not too vague or indefinite
- Legal formalities: a contract may be made by words spoken or written, and some contracts require registration or stamping
Offer and Acceptance
- Offer may be made by express words or spoken, or implied from the conduct of the parties
- Offer must be definite, not ambiguous or vague, and communicated to the offeree
- Offer must be made with a view to obtaining the assent of the other party
- Statement of price is not an offer
- Acceptance is the act of assenting to an offer, and must be absolute, unqualified, and communicated to the offeror
- Acceptance must be given within a reasonable time, and cannot precede an offer
Communication of Offer, Acceptance, and Revocation
- Communication of offer, acceptance, and revocation must be completed by communication to the other party
- Mode of communication is governed by Section 3
- Communication of offer, acceptance, and revocation is complete when it comes to the knowledge of the person to whom it is made
- Time for revocation of offer and acceptance is governed by Section 5
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