2

Question 1

In Fisher v Bell the defendant displayed a flick knife in his shop window. He was found not guilty of the criminal offence of offering for sale an offensive weapon because:

a.	The knife was behind a window and therefore not accessible by the general public
b.	Although the display of the knife was an offer, no one had accepted the offer
c.	Although the knife was in the shop window, the defendant stated that he did not want to sell it
d.	The display of the knife was classified as an invitation to treat, not an offer for sale

Answer 1

d. The display of the knife was classified as an invitation to treat, not an offer for sale

Question 2

The definition of a bilateral offer is one where:

a.	The offer is a promise in return for the completion of an act
b.	The offer is a promise made in return for a promise
c.	The offer is an act made in return for a promise
d.	The offer is an act with nothing made in return

Answer 2

b. The offer is a promise made in return for a promise

Question 3

If I said that an agreement consists of a promise in exchange for an act.

What type of agreement would I be referring to?

a.	Bilateral
b.	Unilateral

Answer 3

b. Unilateral

Question 4

An offer can terminate through a number of ways, such as:

(1) 	By lapse of time.
(2) 	By rejection.
(3) 	By accepting another acceptance.
(4) 	By death.
(5) 	By revocation before acceptance.

Which ones are correct?
 
a.	(1), (2), (4) and (5)
b.	All
c.	(1), (2) and (4)
d.	(2), (3) and (5)

Answer 4

a. (1), (2), (4) and (5)

Question 5

If all other elements are present, as soon as an offer is accepted a contract comes into existence and both sides are legally bound.

a.	True
b.	False

Answer 5

a. True

Question 6

(1) Acceptance needs to be communicated to the offeror (unless it falls within one of the exceptions (unilateral or postal rule)).
(2) Silence cannot amount to acceptance (following the rule in Felthouse v Bindley).
(3) Acceptance never needs to be communicated.
(4) Acceptance must always be in writing.

Which are correct statements?

a.	(1) and (2)
b.	All
c.	(1) only
d.	(1) and (3)

Answer 6

a. (1) and (2)

Question 7

Which of the following is not normally necessary for a valid acceptance?

a.	Intention to create legal relations
b.	Communication of acceptance to the offeror
c.	Communication of acceptance to the offeree
d.	Acceptance of all the terms of the offer

Answer 7

c. Communication of acceptance to the offeree

Question 8

The offeror has the right to specify the mode of communication of acceptance.

a.	True
b.	False

Answer 8

a. True

Question 9

Where an offeree attempts to vary the terms offered, the effect is:

a.	This is treated as a counter-offer which rejects the 			original offer
b.	This is treated as a counter-offer but the original offer still survives
c.	The whole contract is automatically terminated
d.	The offeror can either accept or decline the variation and then the offeree has a choice of whether to accept or decline the acceptance

Answer 9

a. This is treated as a counter-offer which rejects the original offer

Question 10

Does a unilateral contract require acceptance to be communicated?

a.	Yes
b.	No

Answer 10

b. No