Contract

Question 1

Elements to form a binding contract

Answer 1

• offer
• acceptance
• intention to create legal relations
• consideration

Question 2

valid offer requirements

Answer 2

• clear
• certain
• with intention to be legally bound

Question 3

Auction sales requests for bids are

Answer 3

invitations to treat

Question 4

When can the bidder of the auction sales revoke their offer?

Answer 4

At anytime before the hammer falls

Question 5

auction without reserve cases

Answer 5

the auctioneer promises to sell to the highest bidder no matter the value of that bid

• If auctioneer does not sell, then he breaches a unilateral contract
• The highest bidder is then entitled to be compensated by damages

Question 6

When does an invitation to tender amount to an offer?

Answer 6

when a tender promises to accept the highest or lowest bid (undertakes), then there is an offer
(unilateral offer)

Question 7

tender is regarded as a binding contract if
(Blackpool conditions)

Answer 7

• solicited from specified parties known to the offerer
• absolute deadline for submission
• laid down absolute and non-negotiable conditions for submission

Question 8

What amounts to termination of offer

Answer 8

1) counter-offer
2) Lapse (passage of time) - either prescribed period OR within a reasonable time
3) death of the offeror or offeree

Question 9

when can the offer be revoked

Answer 9

anytime before acceptance

Question 10

when does revocation take effect

Answer 10

from the moment it actually reaches the offeree
(rwhen eceived)