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Contract FLK SQE1 Exam With Correct Answers Latest Update 100% Verified
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Contract FLK SQE1 Exam With Correct Answers LatestUpdate 100% Verified
What is needed for an enforceable contract? - ANSWER 1. Agreement. offer and
acceptance
2. Intention to create legal relations
3. Consideration
What is the approach of the court in deciding whether there is an agreement? - ANSWER
An objective test considering what a reasonable man would say was the intention of the
parties, having regard to all the circumstances.
What is a bilateral contract? - ANSWER Each party assumes an obligation to the other
party by making a promise.
2 people having to do something e.g. sell an item in exchange for payment. Promise for
promise.
What is a unilateral contract? - ANSWER One party makes an offer/ proposal which calls
for an act to be performed by one or more parties.
Offer is accepted by performance of an act
What is an offer? - ANSWER An undertaking to be contractually bound by the terms of
that offer in the event of an unconditional acceptance being made by the offeree.
What is an invitation to treat? - ANSWER - Not an offer
- First step in negotiations which may or may not lead to a firm offer by one of the
parties.
,Cannot be accepted to form a binding contract
Are advertisements offers or invitations to treat? - ANSWER Invitations to treat
statements inviting further negotiations
Partridge v Crittenden [1968]
What is the exception to the general rule that advertisements are invitations to treat? -
ANSWER Where advertisements amount to a unilateral offer
e.g. advertising a reward or a clear prescribed act w/ clear intent to be bound
Carlill v Carbolic Smoke Ball Co (1893)
Are goods on display offer or invitations to treat? - ANSWER Invitations to treat
Fisher v Bell (1961)
What is a tender? - ANSWER Where a party invites tenders (i.e. offers) from those
interested in supplying goods and services to submit bids so that they can be chosen to
carry out the work for them.
Are invitations to tender offers or invitations to treat? - ANSWER Invitations to treat
Requestor can accept or reject any tender.
Spencer v Harding (1870)
,What is the exception to the rule that invitations to tender are invitations to treat? -
ANSWER Where the invitation to tender expressly contains an undertaking to accept the
highest or lowest bid - forming a unilateral contract.
Harvela Investments
Ltd v Royal Trust Co. of Canada (CI) Ltd [1985]
Auction sales-are they offers or invitations to treat? ANSWER Invitation to treat
The bidder makes an offer which the auctioneer is free to accept or reject
Payne v Cave (1789)
At an auction, when is the offer made and accepted? ANSWER Bid = offer
Accepted = by the fall of the auctioneer's hammer (marks acceptance of last bid)
What are auctions "without reserve"? - ANSWER Seller promises to sell to the highest
bidder whatever it may be
e.g. as opposed to reserved price where if no bid above then seller can keep item.
What is the exception to the rule that auction sales are invitations to treat? - ANSWER
Auctions "without reserve"
The auctioneer may be sued for breach of contract if they refuse to sell to highest
bidder.
What are the ways an offer is terminated? (3 of them) - ANSWER 1. Rejection
2. Lapse
3. Revocation
, When does rejection of an offer take effect? - ANSWER When it is communicated to the
offeror
Where a counter-offer is made, can the original offer still be accepted? - ANSWER NO.
Where an offeree makes counter-offer, the original offer is deemed rejected and cannot
be subsequently accepted
Hyde v Wrench (1840)
What is the distinction between a counter offer and request for further information? -
ANS Counter offer = new terms and amounts to rejection of original offer
Request for further information = enquiry about offer. Seeks clarification of the extent
and terms of offer. Original offer remains open
What are the ways an offer can be terminated through lapse of time? - ANS 1. Passage
of time
2. Death of one of the parties
Under what 2 circumstances can an offer lapse by passage of time? - ANSWER 1. Where
acceptance is not made within the period prescribed by the offeror;
2. Where no period is prescribed and acceptance is not made within a reasonable time.
What is reasonable will depend on the circumstances of the case.
Will death of offeree cause an offer to lapse? - ANSWER YES
offer can no longer be accepted. The offer cannot be
accepted after the offeree's death by the offeree's representatives.
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