Contract 2

Which one of the following is an example of a unilateral contract?

• Anne loses her dog, and puts up a poster asking people to look out for it and phone her if they find it.

• Anne loses her dog, and agrees with Ben to pay him £25 to spend the morning looking for it.

• Anne loses her dog, and puts up a poster describing it and offering a £50 reward to anyone who finds it.

• Anne loses her dog, and Carlo finds it. When he brings it back, she gives him £50.

What is the key difference between an invitation to treat and an offer?

• An invitation to treat can only be accepted to form a bilateral contract.

• An invitation to treat has to be in writing.

• An invitation to treat cannot be accepted and form a contract.

• An invitation to treat can be accepted by conduct, such as picking up goods on display and taking them to a till.

Meera offers to sell Pavel her Contract textbook for £10. In which of these circumstances would her offer be terminated?

• Pavel says he’ll buy the book for £5.

• 
  

  
  Pavel hands over the £10, but Meera changes her mind and says she wants £15.
  

• Pavel agrees to buy the book, and pay in two days’ time, but without telling him, Meera agrees to sell it to someone else.

• Pavel asks if she can deliver it to him.

When does verbal acceptance of an offer take effect?

• When the acceptance is confirmed in writing

• When both parties sign the contract
  

• When the offeree says they accept the offer
  

• When the offeror is aware that the offeree has accepted the offer

What is the postal rule?

• An acceptance sent by post is only effective once the offeror confirms receipt.
  

• An offer can only be accepted by post if it was sent by post.

• An acceptance sent by post takes effect when it is received.

• An acceptance sent by post takes effect when it is posted.
  

In which of these situations would there be a presumption that the parties did intend to be legally bound by their agreement?

• Joe goes to the races with Anna and says, ‘If I win, I’ll share the money with you.’

• Sita agrees to give up her job in a bar and take up a place to study engineering if her mother pays her tuition fees.

• Carol, a plumber, agrees to fit a new sink for Richard for £120.

• Carlo agrees to clean his wife’s car for £10 as long as she parks it outside their house.
  

What was the main reason why the court in Merritt v Merritt found there was an intent to create legal relations?

• Mr Merritt had agreed to pay the allowance if Mrs Merritt used it to pay the mortgage.
  

• Mr Merritt put his promise in writing.

• The parties were a married couple.

• The parties were in the process of separating.
  

On what basis did the court in Simpkins v Pays decide the agreement should be binding?

• It was a commercial agreement so there was a presumption that it was intended to be binding.

• It was fairer to all the parties if the prize was shared.

• It was wrong for the defendant not to honour a promise.
  

• Looking at what the parties had said and done, that appeared to be their intention.

Where one party to a commercial agreement argues it was not meant to be binding, which of these describes the legal position?

• It depends which party is arguing it was not binding – the buyer or the seller.

• The courts will presume the agreement was not binding, but the presumption can be rebutted.

• The courts will presume the agreement was binding, but the presumption can be rebutted.

• The agreement is considered binding because it is made in a commercial setting.

In which of these bargains is consideration present?

• A asks B to clean her car and offers to pay her £10; B agrees.
  

• A cleans B’s car as a surprise, and B bakes her a cake to say thank you.
  

• A offers to clean B’s car and B says yes.
  

• A asks B to clean her car, and B agrees.