©EVERLY 2024/2025 ALL RIGHTS RESERVED.
Contract Law (PGDL) Exam Questions And
Answers (Guaranteed A+)
What are the two main types of contract? - Answer✔Bilateral - A promise for a promise
Unilateral - A promise in return for an act
What are the main invitation to treat situations? - Answer✔- Advertisement
- Self-service and shop windows
- Auctions (with reserve)
- Invitations to tender
- Mere statements of price
What is the postal rule? - Answer✔- Acceptance occurs when the letter is posted not when it is
received
- Also applies if the letter is never received (proof of postage)
- Postal rule can be ousted in the offer
- Only applies to acceptance not revocation
Can the offeror stipulate the method of acceptance? - Answer✔- Yes, but they must CLEARLY
STATE that only the stipulated method will be accepted.
- Remember an equally expeditious method to that stipulated should be sufficient (Timm v
Hoffman)
The general rule is that acceptance has no effect until communicated. However, what are the
other considerations? - Answer✔- Silence cannot amount to acceptance
- Acceptance in unilateral contracts (no need to communicate. Performance)
- Acceptance by conduct (may be inferred by conduct without being expressly communicated)
Counter offer v Request for information - Answer✔Counter offer (Hyde v Wrench)
- Destroys previous offer, rendering it incapable of acceptance
- role of offeror and offeree swaps
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Request for information (Stevenson, Jacques and Co v McLean)
- Does not attempt to vary the terms of offer
- The previous offer remains open for acceptance
Types of Termination - Answer✔- Rejection
- Revocation (think about communication in bilateral and unilateral)
- Lapse in time
- Failure to comply with condition
- Death of one of the parties (think about offeror v offeree)
Acceptance must be... - Answer✔- In response to the offer
- Unqualified
- Communicated (think about third party communication)
When is intention to create legal relations presumed? - Answer✔- In commercial agreement it is
presumed that there is an intention
- In a social/domestic agreement it is not presumed that there is an intention
How can the presumption that the parties have an ICLR be rebutted? - Answer✔Wording that the
parties do not intend to create legal relations that is clear and unambiguous
What is consideration? - Answer✔The value given in return for a promise. Look out for the
exchange.
Issues with consideration when varying existing contract - Answer✔- Variation to pay more for
an obligation in an existing contract between the parties (Promise to pay more). Standard rule is
no consideration.
- Variation to accept part payment of a debt under an existing contract (Promise to accept less).
Standard rule is no consideration.
Exceptions to the rule (promise to pay more) - Answer✔Hartley v Ponsonby
- Is there extra? Is there something of value to enforce the extra payment?
Then...
Williams v Roffey
- Must first identify no fresh consideration.
- Is there a practical benefit?
Exceptions to the rule (promise to accept less) - Answer✔Promissory estoppel
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Contract Law (PGDL) Exam Questions And
Answers (Guaranteed A+)
What are the two main types of contract? - Answer✔Bilateral - A promise for a promise
Unilateral - A promise in return for an act
What are the main invitation to treat situations? - Answer✔- Advertisement
- Self-service and shop windows
- Auctions (with reserve)
- Invitations to tender
- Mere statements of price
What is the postal rule? - Answer✔- Acceptance occurs when the letter is posted not when it is
received
- Also applies if the letter is never received (proof of postage)
- Postal rule can be ousted in the offer
- Only applies to acceptance not revocation
Can the offeror stipulate the method of acceptance? - Answer✔- Yes, but they must CLEARLY
STATE that only the stipulated method will be accepted.
- Remember an equally expeditious method to that stipulated should be sufficient (Timm v
Hoffman)
The general rule is that acceptance has no effect until communicated. However, what are the
other considerations? - Answer✔- Silence cannot amount to acceptance
- Acceptance in unilateral contracts (no need to communicate. Performance)
- Acceptance by conduct (may be inferred by conduct without being expressly communicated)
Counter offer v Request for information - Answer✔Counter offer (Hyde v Wrench)
- Destroys previous offer, rendering it incapable of acceptance
- role of offeror and offeree swaps
1|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
Request for information (Stevenson, Jacques and Co v McLean)
- Does not attempt to vary the terms of offer
- The previous offer remains open for acceptance
Types of Termination - Answer✔- Rejection
- Revocation (think about communication in bilateral and unilateral)
- Lapse in time
- Failure to comply with condition
- Death of one of the parties (think about offeror v offeree)
Acceptance must be... - Answer✔- In response to the offer
- Unqualified
- Communicated (think about third party communication)
When is intention to create legal relations presumed? - Answer✔- In commercial agreement it is
presumed that there is an intention
- In a social/domestic agreement it is not presumed that there is an intention
How can the presumption that the parties have an ICLR be rebutted? - Answer✔Wording that the
parties do not intend to create legal relations that is clear and unambiguous
What is consideration? - Answer✔The value given in return for a promise. Look out for the
exchange.
Issues with consideration when varying existing contract - Answer✔- Variation to pay more for
an obligation in an existing contract between the parties (Promise to pay more). Standard rule is
no consideration.
- Variation to accept part payment of a debt under an existing contract (Promise to accept less).
Standard rule is no consideration.
Exceptions to the rule (promise to pay more) - Answer✔Hartley v Ponsonby
- Is there extra? Is there something of value to enforce the extra payment?
Then...
Williams v Roffey
- Must first identify no fresh consideration.
- Is there a practical benefit?
Exceptions to the rule (promise to accept less) - Answer✔Promissory estoppel
2|Page
