CHAPTER 2 CONTRACT FORMATION

Which of the following types of contract must be in writing or evidenced in writing?

• A partnership agreement

• A contract for the sale of goods

• An agreement for the transfer of land

• An employment contract

Which of the following terms describes a contract where one party may set it aside, but property 2 transferred before avoidance is usually irrecoverable from a third party?

• VOID

• VOIDABLE

• UNENFORCEABLE

• VALID

Grace intends to promise Carlos that she will pay the debts owed to Carlos by Duncan, in the event that Duncan fails to pay them himself.

Requirement

Which of the following is true with regard to Grace's proposed guarantee so that it will be enforceable in a court of law?

• It must be by deed.

• It must be in writing

• It can be oral provided it is evidenced in writing.

• It can be oral only.

Denzil puts a notice in the local post office saying "Reward. Lost cavalier King Charles spaniel named Bee. £150 reward for her safe return". Florence finds Bee and, unaware of Denzil's notice, takes her to Denzil's home address which is written on the dog's name tag.

Requirement

Which of the following statements best describes the legal position?

• Florence is not entitled to the reward. The offer is invalid as it is not made to an identifiable class A of persons.

• Florence is entitled to the reward. The offer is valid and her acceptance of the offer can be B inferred from her act of returning the dog.

• Florence is not entitled to the reward. She failed to claim the reward at the time of returning Bee C (and accepting Denzil's offer) and has therefore waived her right to receive it.

• Florence is not entitled to the reward as she did not even know that a reward was being offered.

Clara sells high-quality French cheeses from her shop. She delivers a leaflet containing all of her best 5 offers to all of the £1 million plus homes in her local area. On reading her copy of the flyer, Keiko places a large order.

REQUIREMENT
Is the leaflet issued by Clara a valid offer?

• YES

• NO

Clara sells high-quality French cheeses from her shop. She delivers a leaflet containing all of her best 5 offers to all of the £1 million plus homes in her local area. On reading her copy of the flyer, Keiko places a large order.

REQUIREMENT

Is Clara in breach of contract if she says to Keiko that what she has ordered is out of stock and that she is unable to get hold of any more stock?

• YES

• NO

A local newspaper advertises “50 scooters remaining. 3 feet high. Only £20 each”.

Requirement

Which legal term best describes the advert?

• OFFER

• A STATEMENT OF INTENTION

• INVITATION TO TREAT

• SUPPLY OF INFORMATION

All of the following, except one, have the effect of terminating an offer.

Requirement

Which is the exception?

• Rejection

• A Counter offer

• When a pre-condition is satisfied

Martine offers to sell her sailing dinghy to Diego for £1,500, provided she gets the job for which she has just been interviewed, since that would result in her having to live somewhere too far from sailing facilities. Diego is delighted and thinks £1,500 is an excellent price. Martine fails to get the job. Requirement

What is the consequence of Martine failing to get the job?

• The offer is terminated.

• The contract is voidable

• The contract is unconditional.

• The contract is unenforceable.

On Monday, Ivan offers to sell his piano to Hilda for £1,500, to be delivered on Thursday. On 9 Tuesday, Hilda replies, saying that she will only buy the piano if Ivan will delay delivery until the following Monday. Ivan doesn't reply but sells his piano to Ivy on Thursday.

REQUIREMENT

On Friday, Hilda sees Ivan and accepts his offer. Is there a binding contract between Ivan and Hilda?

• Yes, Hilda's reply on Tuesday constitutes an acceptance of the offer.

• No, Hilda's reply on Tuesday constitutes a counter offer which destroys the original offer.

• No, the offer is terminated when Ivan sells the piano to Ivy on Thursday.

• Yes, Hilda's reply on Tuesday is a request for information only and on Friday she accepts his offer.