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Formation of a Contract

The Requirements of Offer and Acceptance

  • 3 things to know
  • Paper 3

Overview

Recall questions on the two characteristics an offer must have, what acceptance means, what unqualified requires and how an invitation to treat differs.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What two essential characteristics must an offer possess?

Key term

To whom can an offer be made?

Key term

What is the legal effect of a counter-offer on the original offer?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What two essential characteristics must an offer possess?

    Model answer

    An offer must be clear and definite in its terms.

  2. 2

    Define acceptance in the context of contract formation.

    Model answer

    Acceptance is the unqualified and unconditional agreement to all terms of an offer, communicated to the offeror.

  3. 3

    What does it mean for acceptance to be 'unqualified'?

    Model answer

    It means the acceptance must agree to all terms of the offer without any conditions or modifications.

  4. 4

    How does an invitation to treat differ from an offer?

    Model answer

    An invitation to treat is not an offer but merely an invitation for others to make offers; it does not express willingness to be bound.

  5. 5

    Why is a shop window display not considered an offer?

    Model answer

    Because it is an invitation to treat, inviting customers to make offers to purchase, rather than a statement of terms by which the shop agrees to be bound.

  6. 6

    What must happen before an offer can be validly accepted?

    Model answer

    The offer must be communicated to the offeree.

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