PGDL Contract Law Exam With 100% Correct Answers 2024

State the three elements required to form a legally binding contract - correct answer-1. Consideration 2. Intention to Create Legal Relations 3. Agreement (O+A) What must an offer be? - correct answer-1. Valid (Clear, Certain, and Addressed to the Offeree) 2. Communicated to offeree 3. Not rejected, revoked or lapsed 4. Made with intention to treat What must acceptance be? - correct answer-1. A mirror image of the offer 2. Made by the offeree in response to the offer 3. Communicated to the offeror Offeror - correct answer-Person making the offer Offeree - correct answer-Person to whom the offer is made When is there a valid offer? - correct answer-Treitel: An expression of willingness to contract on specified terms made with the intention that it is to become legally binding as soon as it is accepted by the person to whom it is addressed Invitation to treat - correct answer-Preliminary stage of negotiations, not an offer Adverts - correct answer-The general rule is that an advert is an ITT, not an offer Invitation to tender - correct answer-The general rule is that an invitation to tender is an ITT, not an offer How can an offer be communicated? - correct answer-1. Orally 2. In Writing 3. By Conduct How can an offer be terminated? - correct answer-1. Rejection 2. Revocation 3. Lapse Counter-Offer - correct answer-Rejection of the first offer Request for further information - correct answer-Original offer remains open Revocation - correct answer-Can occur any time before acceptance Revocation of a unilateral offer - correct answer-Can be revoked any time before complete performance Lapse - correct answer-1. Passage of time-after a reasonable period 2. fulfilment of a condition 3. Death Requirements for acceptance - correct answer-1. Must be mirror image of the offer 2. Must be made by an offeree 3. In response to the offer/ being aware of the offer 4. Motive for acceptance is irrelevant 5. An acceptance must be communicated Exceptions to the above requirement for communication of acceptance - correct answer-1. For unilateral offers, only performance of the act is necessary 2. Where the failure to communicate acceptance is the offeror's fault 3. The Postal Rule The Postal Rule - correct answer-- For acceptance sent in the post, acceptance occurs at the moment of posting - Offeror cannot revoke their offer after acceptance is posted, even if they are unaware of its posting - Must be properly posted - The acceptance is still valid even if the letter is lost or destroyed Exceptions to the Postal Rule - correct answer-- If it is addressed incorrectly by the offeree then it is only valid from the moment that it arrives - It is not reasonable to use the post or there is an implied condition or actual condition that prompt acceptance is required - If the application of the postal rule would cause manifest inconvenience and absurdity - If the postal rule is ousted by the offeree Instantaneous Communications - correct answer-Acceptance occurs when the communications is received Unilateral Offer - correct answer-A legal contract in which one individual, the buyer, pays for a specific action from another party. One-Sided agreement Bilateral offer - correct answer-Between two parties who agree to perform certain services to provide certain products for a specific price