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Which of the following statements concerning the law and contracts is correct? 

A

The law seeks to ensure equal bargaining power between parties 

B

 The law will only interfere in contracts where one party abuses a stronger bargaining position 

C

The law does not interfere in the formation of contracts 

D

 The law seeks to maintain the bargaining power of parties in a contract 

Which TWO of the following are examples of valid offers? 

(1) A person verbally stating to another person that they would like to sell their computer to them for £500 today  

(2) A newspaper advert that states a shop is selling shoes for £20  

(3) A person handing their shopping to a supermarket checkout operator  

(4) A business that circulates its price list to customers 

A

 1 and 2 

B

 1 and 3 

C

 2 and 3 

D

 2 and 4 

Which of the following is an example of a valid offer? 

A

 A display of goods for sale 

B

An Internet shop that advertises products for sale 

C

 A newspaper advert that includes a specific statement, made to the world at large, offering areward for the return of a particular item 

D

 An invitation for potential suppliers to tender for the provision of services 

 Which of the following statements regarding counter-offers is correct? 

A

 Counter-offers may be accepted by the original offeror 

B

 Counter-offers do not terminate the original offer 

C

 A statement that enquires whether alternative terms would be acceptable is a counter-offer 

D

 A counter-offer is made by the original offeror to the original offeree 

In which of the following situations will an offer be terminated? 

A

When a letter of revocation is posted 

B

 When a third party, who is sufficiently reliable, verbally notifies the offeree of the offeror's revocation 

C

 When an offeree enquires whether the offeror will accept payment by credit card rather than cash 

D

When an offeror dies, the offeree is unaware of the death and the contract is not of a personal nature

Which of the following would be regarded as valid, binding acceptance? 

A

 A counter-offer 

B

 Acceptance 'subject to contract' 

C

A tender to perform one task 

D

 Posting a letter of acceptance 

Which TWO of the following statements regarding acceptance of an offer are correct?

 (1) Acceptance does not need to be communicated in a unilateral contract 

(2) If two identical offers between two parties cross in the post, then one will be regarded as acceptance of the other

 (3) Under the postal rule, a letter of acceptance that has been posted does not have to be received by the offeror to be valid acceptance

 (4) If no method of communicating acceptance is stated in the offer, then acceptance must be made by post 

A

 1 and 2 

B

 1 and 3 

C

 2 and 3 

D

 2 and 4 

Which parties are bound by the terms of the tender when one party submits a tender? 

A

 The person submitting the tender 

B

 The person requesting the tender 

C

 Both parties 

D

 Neither party 

 In the context of contract law, a bid at an auction is which of the following? 

A

 An invitation to treat 

B

 An offer 

C

 A counter-offer 

D

 An acceptance 

 Abe issued an invitation to tender for a contract and Bea submitted her terms. 

Which of the following statements is accurate? 

A

 Abe made an offer which Bea accepted 

B

 Abe made an invitation to treat and Bea made an offer 

C

 Both Abe and Bea made invitations to treat 

D

 Abe made an offer and Bea made a counter-offer