ACCA F4 - Corp and Business Law (ENG)

Part B The law of obligations  3: Formation of contract I 53

Quick Quiz

1 How is the circulation of a price list categorised in the law of contract?

Offer Tender

Invitation to treat Auction

2 Fill in the blanks in the statements below, using the words in the box.

As a general rule, acceptance must be (1) .................... to the (2) .................... and is not effective

until this has been done.

An (3) .................... is a definite promise to be bound on specific terms, and must be distinguished

from a supply of (4) .................... and from an (5) ....................

A counter-offer counts as (6) .................... of the original offer

 information  offer  invitation to treat

 rejection  communicated  offeror

3 Advertising an auction is an offer to sell

True^

False^

4 As a general rule, silence cannot constitute acceptance.

True^

False

5 Fill in the blanks in the statement below:

A valid contract is a legally binding agreement. The three essential elements of a contract are

(1) ...................., (2) .................... and (3) .....................