PVL3702 LAW OF CONTRACT EXAM 2025
COMPLETE STUDY GUIDE CERTIFICATION
EVALUATION EXAMS 2026 SOLVED
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Communicated to offeree. Answer: a. Offeree must have
knowledge/awareness
b. Public Offers: Offer held suspended until accepted by one with
knowledge of offer. (a unilateral contract)
In common law the courts will not write a contract for the parties
⩥ What is not an offer?. Answer: 1. An offer made in jest: An offer
which the offeree knows or should know is made in jest.
2. Preliminary negotiations and statements of future intentions: "I'm
thinking of selling my car for a thousand dollars," or "I am going to sell
my car for a thousand dollars."
3. Price quotations: Generally, a price quote is not an offer, especially if
it does not include a quantity, is not addressed to a specific offeree, or
does not include words like "offer".
,4. Solicitations: Solicitations create no legal obligations.
A straightforward example of a solicitation would be, "I would like to
sell you my car. Make me an offer." The speaker is understood to be
soliciting an offer, not making one.
Advertisements will normally be construed by courts to be invitations to
the public to make offers.
⩥ When an advertisement may be an offer.. Answer: An advertisement
may be construed to be an offer if it would leave a reasonable
prospective buyer to believe that an offer was intended.
This would occur if the advertisement contains the elements of an offer:
Clear and Definite terms, and apparent conveyance of power of
acceptance to the offeree.
⩥ Termination of an offer: 5 ways. Answer: 1. Lapse of the offer
2. Rejection
3. Counteroffer
, 4. Revocation
5. Death or mental disability of the offeror
⩥ Revocation. Answer: A revocation is effective when the offeree learns
of an act by the offeror that is wholly inconsistent with the offer.
i.e. such as learning that the offeror has sold the item in question to
someone else.
⩥ Rejection. Answer: The offeree's communication to the offeror,
rejecting the offer, terminated the power of acceptance, should the
offeree later change her mind.
⩥ Lapse of offer. Answer: The offer may lapse in a stated time, or after a
reasonable time.
⩥ Counteroffer. Answer: A counteroffer always includes a rejection of
the original offer. If the counter offer is not accepted, the original offer
cannot now be accepted unless it is offered again.
⩥ Revocation *. Answer: The offeror is "master of her offer" and may
freely revoke the offer prior to acceptance. The revocation is only
effective once it has been communicated to the offeree. This
COMPLETE STUDY GUIDE CERTIFICATION
EVALUATION EXAMS 2026 SOLVED
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Communicated to offeree. Answer: a. Offeree must have
knowledge/awareness
b. Public Offers: Offer held suspended until accepted by one with
knowledge of offer. (a unilateral contract)
In common law the courts will not write a contract for the parties
⩥ What is not an offer?. Answer: 1. An offer made in jest: An offer
which the offeree knows or should know is made in jest.
2. Preliminary negotiations and statements of future intentions: "I'm
thinking of selling my car for a thousand dollars," or "I am going to sell
my car for a thousand dollars."
3. Price quotations: Generally, a price quote is not an offer, especially if
it does not include a quantity, is not addressed to a specific offeree, or
does not include words like "offer".
,4. Solicitations: Solicitations create no legal obligations.
A straightforward example of a solicitation would be, "I would like to
sell you my car. Make me an offer." The speaker is understood to be
soliciting an offer, not making one.
Advertisements will normally be construed by courts to be invitations to
the public to make offers.
⩥ When an advertisement may be an offer.. Answer: An advertisement
may be construed to be an offer if it would leave a reasonable
prospective buyer to believe that an offer was intended.
This would occur if the advertisement contains the elements of an offer:
Clear and Definite terms, and apparent conveyance of power of
acceptance to the offeree.
⩥ Termination of an offer: 5 ways. Answer: 1. Lapse of the offer
2. Rejection
3. Counteroffer
, 4. Revocation
5. Death or mental disability of the offeror
⩥ Revocation. Answer: A revocation is effective when the offeree learns
of an act by the offeror that is wholly inconsistent with the offer.
i.e. such as learning that the offeror has sold the item in question to
someone else.
⩥ Rejection. Answer: The offeree's communication to the offeror,
rejecting the offer, terminated the power of acceptance, should the
offeree later change her mind.
⩥ Lapse of offer. Answer: The offer may lapse in a stated time, or after a
reasonable time.
⩥ Counteroffer. Answer: A counteroffer always includes a rejection of
the original offer. If the counter offer is not accepted, the original offer
cannot now be accepted unless it is offered again.
⩥ Revocation *. Answer: The offeror is "master of her offer" and may
freely revoke the offer prior to acceptance. The revocation is only
effective once it has been communicated to the offeree. This
