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ACCT 252 LAW OF BUSINESS
CONTRACTS 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Where communication of acceptance is instantaneous
Entores Ltd v Miles Far East Corporation.
Electronic Acceptance - correct answer -Electronic Transactions
Act 2002 (the Act) confirms that no transaction will be denied
legal effect merely because it took place using electronic
technology
Minor Contract S6 - correct answer -Morrow & Benjamin Ltd v
Whittington
The contracts were entered into by a substantial firm of
stockbrokers which was fully aware of Defendant's minority
Stage 1 ('threshold test') - the court shall determine whether the
contract was fair and reasonable at the time the contract was
entered into
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Stage 2 - the court shall exercise its discretion in making orders
under s 6(2)(a) or (b), as the case may be.
unsound mind Contracts - correct answer -Hart v O' Connor.
O'Connor was suffering from senile dementia.
A contract with a party who lacks capacity will still be enforceable
if the other contracting party did not know, and could not
reasonably have known, of the lack of capacity.
Scott v Wise
understand the nature of the transaction when explained to him,
not all the details
Unsound Mind Gifts & Voluntary Transactions - correct answer -
Dark v Boock
signed a document granting Defendant the right to live in
Plaintiff's property until the death of Defendant.
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Plaintiff lacked capacity to properly understand the document and
the transaction it contained. Nature or the document was
essentially a gift and was voidable
Drunken Persons - correct answer -Peeters v Schimanski
Vendor was affected by alcohol to some degree when signing the
agreement, but he knew what he was doing and could read even
the fine print
Kurth v McGavin
and drunkenness that deprived that person of his or her business
sense only; in the latter case the contract was voidable only
Agreement Traditional approach - correct answer -the court
looks for whether an "offer" has been made by one party and
whether there is an "acceptance" of the offer
Boulder Consolidated Ltd v Tangaere
Boulder's letters fell short of contractual offers and amounted to
no more than offers to treat
ACCT 252 LAW OF BUSINESS
CONTRACTS 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
Where communication of acceptance is instantaneous
Entores Ltd v Miles Far East Corporation.
Electronic Acceptance - correct answer -Electronic Transactions
Act 2002 (the Act) confirms that no transaction will be denied
legal effect merely because it took place using electronic
technology
Minor Contract S6 - correct answer -Morrow & Benjamin Ltd v
Whittington
The contracts were entered into by a substantial firm of
stockbrokers which was fully aware of Defendant's minority
Stage 1 ('threshold test') - the court shall determine whether the
contract was fair and reasonable at the time the contract was
entered into
, Page | 2
Stage 2 - the court shall exercise its discretion in making orders
under s 6(2)(a) or (b), as the case may be.
unsound mind Contracts - correct answer -Hart v O' Connor.
O'Connor was suffering from senile dementia.
A contract with a party who lacks capacity will still be enforceable
if the other contracting party did not know, and could not
reasonably have known, of the lack of capacity.
Scott v Wise
understand the nature of the transaction when explained to him,
not all the details
Unsound Mind Gifts & Voluntary Transactions - correct answer -
Dark v Boock
signed a document granting Defendant the right to live in
Plaintiff's property until the death of Defendant.
, Page | 3
Plaintiff lacked capacity to properly understand the document and
the transaction it contained. Nature or the document was
essentially a gift and was voidable
Drunken Persons - correct answer -Peeters v Schimanski
Vendor was affected by alcohol to some degree when signing the
agreement, but he knew what he was doing and could read even
the fine print
Kurth v McGavin
and drunkenness that deprived that person of his or her business
sense only; in the latter case the contract was voidable only
Agreement Traditional approach - correct answer -the court
looks for whether an "offer" has been made by one party and
whether there is an "acceptance" of the offer
Boulder Consolidated Ltd v Tangaere
Boulder's letters fell short of contractual offers and amounted to
no more than offers to treat
