levo

Formation

Offer and acceptance

  • 6 things to know
  • Component 4

Overview

Recall questions on offers and invitations to treat, the mirror image rule and counter-offers, silence and the postal rule, and termination of an offer by revocation, rejection, lapse of time, death and failure of a condition.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

How does an invitation to treat differ from an offer?

Key term

When does acceptance take effect, generally and under the postal rule?

Evaluation

How can an offer be terminated by revocation or by failure of a condition?

Key term

What is an offer in contract law?

Key term

Give two examples of invitations to treat.

Key term

What is the mirror image rule in contract formation?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is an offer in contract law?

    Model answer

    A definite promise to be bound on specific terms, capable of acceptance.

  2. 2

    How does an invitation to treat differ from an offer?

    Model answer

    An invitation to treat is not an offer but an invitation for others to make offers. It does not demonstrate an intention to be bound upon acceptance.

  3. 3

    Give two examples of invitations to treat.

    Model answer

    Goods displayed in a shop window and goods displayed on shop shelves.

  4. 4

    What is the mirror image rule in contract formation?

    Model answer

    Acceptance must be unqualified and correspond exactly with the terms of the offer.

  5. 5

    Can silence constitute valid acceptance of an offer?

    Model answer

    No, acceptance must be communicated to the offeror, and silence cannot constitute acceptance.

  6. 6

    When does acceptance by post take effect under the postal rule?

    Model answer

    Acceptance is effective when the letter is posted, not when it is received by the offeror.

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