PAPER 2 (STANDARD LEVEL) – 40 QUESTIONS WITH
VERIFIED ANSWERS & DETAILED EXPLANATIONS | TEST
BANK 2026
COURSE NAME
Offer and Acceptance in Contract Law
LEVEL
Standard Level
SHORT INTRODUCTION
This standard-level exam paper focuses on the principles of offer and acceptance in
contract law. It examines legal rules governing formation of agreements,
communication of offers, revocation, counteroffers, and acceptance methods. The
paper is designed to strengthen legal reasoning, contract interpretation, and exam
preparation skills through structured questions and detailed explanations.
INSTRUCTIONS
• Answer all 40 questions
• Section A: Multiple Choice Questions
• Section B: Short Answer Questions
• Section C: Scenario-Based Questions
• Section D: Analytical Questions
• Each question includes an Answer followed by Explanation written in italics
• Suggested time: 2 hours
• Use for revision and examination preparation
, SECTION A: MULTIPLE CHOICE QUESTIONS (1–15)
1. An offer becomes legally effective when it is:
A. Written only
B. Communicated to the offeree
C. Signed by a lawyer
D. Registered in court
Answer: B
Explanation An offer must be communicated before it can be accepted.
2. A counteroffer:
A. Accepts the original offer
B. Rejects and replaces the original offer
C. Creates immediate contract
D. Is illegal
Answer: B
Explanation A counteroffer destroys the original offer and introduces new
terms.
3. An invitation to treat is:
A. A binding agreement
B. A final acceptance
C. An invitation to negotiate
D. A court judgment
Answer: C
Explanation It invites others to make offers rather than creating obligations.
4. Acceptance must be:
A. Conditional
B. Unclear
C. Absolute and unconditional
D. Delayed
Answer: C
Explanation Acceptance must fully agree with the offer terms.
5. Which case usually represents an invitation to treat?
A. Reward advertisement
B. Shop display
C. Signed agreement
D. Oral promise
Answer: B
Explanation Goods displayed in shops are invitations for customers to make
offers.