BUS201 U2

"In general, which of the following is an exception to the general rule that acceptance must be physically received or heard by the offeror? I) Both parties agree that acceptance can be sent by post, and the letter of acceptance has been posted by the offeree. II) One of the parties sends a letter to the offeror stating, "If you don't reply to me within 2 days, it will mean that my acceptance is valid." III) Both parties agree that the offeree is required to communicate only if he wishes to reject the offer."

(I) and (III)

"Which of the following generally would constitute an offer? I) A pamphlet which you received in your mailbox. It offers a reward to any person who finds a lost cat and returns it to the owner. II) An advertisement in a newspaper for consumer electronics goods. It shows the shop name, pictures of laptops and printers, and the price displayed under each item, but with no further information. III) A customer tells the shop assistant company that he wishes to buy the book and asks about the price. IV) A customer brings the shirt to the cashier, ready to pay for it."

(I) and (IV)

"An offer can be made to _________. I) A stranger that you met on a bus. II) A group of your classmates. III) People around the world whom you have never met."

(I), (II) and (III)

"Which of the following promises would be regarded as being insufficient (and hence, invalid) consideration, based on the case law? I) Promise by a mother to be a good parent. II) Promise by a student to study hard in school. III) Promise by a fireman to put out a fire. IV) Promise to pay a debt ahead of schedule."

(I), (II) and (III)

"In general, which of the following are basic elements of a valid contract (ie, items which determine whether there is a meeting of the minds between the parties)? I) offer and acceptance II) consideration III) a written agreement IV) intention to create legal relations"

(I), (II) and (IV)

"Which of the following statements are true? I) An offer can be revoked so long as the offeror communicates the revocation to the offeree before the offeree accepts the offer. II) An offer, once made, can never be revoked. III) Where an offer is not expressed to be open for a specified period of time, it may be regarded as having been terminated after a reasonable period of time has lapsed. IV) An offer may be superseded by a new offer, so long as the original offer has not been accepted."

(I),(III) and (IV)

"Which of the following rules are correct? I) Consideration must reflect market value. Hence, if the market value of a car is S$50,000, the purchase price of S$10,000 for the car would be deemed as invalid consideration. II) Consideration need not move to the promisor. Hence, where Adrian promises to transfer possession of a book to Bertha if Bertha pays Charles a sum of money, Bertha's payment of money to Charles will constitute good consideration for Adrian's promise. III) Past consideration is also valid consideration. Hence, where Danny wants to buy a book from Edith, the lunch that he bought for her a few months ago can constitute consideration for the present purchase of the book. IV) There is only one "consideration" in a sale and purchase of a book transaction. The consideration is the promise by the buyer to pay the purchase price."

(II) only

Andrew is selling his car. His advertisement states that the sale must be completed within 1 week and that interested buyers should post to him a letter stating their acceptance of his offer. Which of the following describes a situation where there was a valid acceptance of an offer?

? Kelvin mails a short note to Andrew, stating that he accepts her offer. Andrew does not receive the note.

In which of the following situations does the law presume that there was an intention to create legal relations?

A car repair company launches a promotional offer on a 2-year maintenance contract to its customers.

Which of the following best describes an honour clause?

A clause in an agreement which states that the agreement is merely a record of the parties' intention and is not intended to be legally binding

"Which best describes the law in Singapore regarding written contracts? I) In some situations, oral (verbal) evidence may be introduced to alter the terms of a written contract. II) Certain transactions are required to be in writing. III) Transactions relating to transfers of real property must be evidenced in writing."

All of the listed choices

Based on the case of Merritt v Merritt (1970), the wife succeeded in her claim against her husband for breach of contract. This indicated that _________

Although the law presumes that a domestic agreement lacks the intention to create legal relations, this presumption may be rebutted by circumstances to the contrary.

An exception to the privity of contract rule is the Contracts (Rights of Third Parties) Act, Cap. 53B of Singapore. Under this Act, _________.

Any person who is not party to the contract is still able to enforce the contract if (i) the contract states that he may do so and (ii) that party is identified in the contract.

At law, consideration is essential for all contracts, except for _________.

Contracts executed as a deed

Ian, as the landlord, promised Hazel (the tenant) to lower the rent for 6 months when she was out of a job. As a result of his promise, Hazel did not look for cheaper accommodation. However, the landlord subsequently tried to claim for the original rental amount. Based on the doctrine of promissory estoppel in the case of Central London Property Trust v High Trees House Ltd (1947), what would be the likely outcome?

Hazel relied on the landlord's promise to her detriment - she did not seek cheaper alternative accommodation. The landlord is likely to be estopped from claiming the original rental amount.

John offered to sell his apartment at S$200,000 to Lily. She requested for one week to consider his offer. John agreed. Based on Routledge v Grant (1828), is John legally obliged to do so?

No, unless there is a separate contract supported by consideration for John to keep the offer open eg. payment by Lily of a small fee.

On Friday, Jane mails a letter to Tom, offering to sell him her boat at S$100,000. On Saturday, Jane left a voice message on Tom's mobile, stating that she wishes to sell the same boat at S$120,000 instead. Tom never received the letter nor heard the voice message. Which of the following is a valid offer?

None of the listed choices.

Based on the case of Compaq Computer Asia Pte Ltd v Computer Interface (S) Pte Ltd (2004), it is a valid acceptance by Party A when _________.

Party A unconditionally accepts all the terms and conditions attached to an offer, without any changes.

Past consideration is usually not valid consideration. Which of the following is considered past consideration?

Susan agrees to provide cleaning services to Max for S$200 per week. One week later, Max agrees to sell his car to Susan in exchange for Susan's provision of cleaning services. Susan's promise to provide cleaning services is considered past consideration.