Understanding Offer in Contract Law

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Questions and Answers

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?

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?

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?

Before the communication of its acceptance is complete Signup and view all the answers

What must be done for a revocation to be considered complete as per section 4 para 3?

When it is put in transmission to the person to whom it is made Signup and view all the answers

What signifies completion of acceptance in postal transit according to the text?

As soon as the letter of acceptance is posted Signup and view all the answers

What is necessary for an offer to be valid?

Communication to the offeree Signup and view all the answers

What does an acceptance of an offer indicate?

Willingness to be bound by the terms of the offer Signup and view all the answers

Why is a statement of price not considered an offer?

It does not indicate willingness to contract Signup and view all the answers

What is required for acceptance to be binding according to legal rules?

Must be absolute and unqualified Signup and view all the answers

What happens if an acceptance is not according to the mode prescribed in the offer?

Acceptance is deemed invalid Signup and view all the answers

Why must an acceptance be communicated within a reasonable time?

To prevent revocation of the offer Signup and view all the answers

What is required for an offer to be considered capable of giving rise to a legal relationship?

Certainty and possibility of performance Signup and view all the answers

Which of the following is not necessary for an invitation to make an offer?

Offer made with definite terms Signup and view all the answers

What distinguishes an invitation to make an offer from an actual offer?

Potential legal consequences upon acceptance Signup and view all the answers

Which of the following is NOT a requirement for an agreement to be enforceable by Law?

Social or domestic nature Signup and view all the answers

In the context of offer and acceptance, what does the capacity of parties refer to?

The legal capacity to contract Signup and view all the answers

Which type of offer is made to the world at large?

General offer Signup and view all the answers

What is the key factor that differentiates an express offer from an implied offer?

Specificity of recipient Signup and view all the answers

'An agreement suffers from any legal flaw it would not be enforceable by Law.' Which principle does this statement relate to?

'Lawful object' Signup and view all the answers

What does it mean for consent in a contract to be 'free'?

Parties agree without any external pressure Signup and view all the answers

Why must an offer be definite and unambiguous?

To create legal obligations upon acceptance Signup and view all the answers

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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Description

Learn about the concept of offer in contract law, including the requirements for a valid offer and how communication plays a key role in forming an offer. Explore the intention behind making an offer and the significance of obtaining the assent of the other party.