CHAPTER 6

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1. When an item is purchased in a supermarket, the offer occurs when

the store puts the item on display with a marked price
the customer presents the item at the till
the store employee rings up the price on the till
the customer presents money for payment
the customer leaves the store carrying the item

2. "I agree to pay you more than required under our contract because your costs are higher than estimated" is

an invitation to treat
an offer
acceptance of an offer
consideration
a gratuitous promise

3. In order to form a contract, the acceptance of the offer must

A) be unconditional
B) be communicated to the offeror
C) be written
D) a & b
E) a & c

4. Use of a seal in a written contract

is always required
is never required
can make an agreement binding that otherwise would not be
does not make any difference in the eyes of the law
is a silly and useless old custom

5. Promissory estoppel

is a principle regarding the enforceability of promissory notes
is a principle that can be used as the basis for taking legal action
is a principle that can be used to enforce a gratuitous promise
is a principle that applied only until legislation abolishing it was passed in 1867
has nothing to do with the enforcement of promises

6. The requirement of intention regarding contracts applies

to all contracts
only to commercial contracts
only to contracts with family members
only to contracts for goods
only to contracts for services

7. If the normal rules apply, entering your name in an electronic order form on the homepage of a vendor on the internet constitutes

an invitation to treat
an offer
acceptance of an offer
consideration
contractual intention

8. In order for a contract to have been formed,

there must have been an exchange of consideration between the parties
there must have been an agreement to exchange consideration between the parties
at least one of the parties must have given consideration to the other
the amount of consideration flowing in each direction must be of equal value
none of the above

9. "I will pay you $100 if you honor your obligations under the contract you have with my brother" is

an invitation to treat
an offer
acceptance of an offer
contractual intention
a gratuitous promise

10. When a member of the crowd at a public auction raises his hand to make a bid, he is making

an invitation to treat
an offer
acceptance of an offer
a contractual intention
a gratuitous promise