ICAEW Commercial law study guide questions and correct Answers 2023/2024

ICAEW Commercial law study guide questions and correct Answers 2023/2024 What does void mean and when are contracts void? correct answer That there is no valid contract and goods should be returned; - illegality (must not be illegal or against public policy) What does voidable mean and when are contracts voidable? - correct answer The contract can be ignored by the 'injured' party; - lack of capacity (due to age or sound of mind) - lack of free will (duress or undue influence) - misrepresentation (incorrect facts that made the contract happen) Which agreements must be evidenced in writing? - correct answer - transfer of land - consumer credit agreements - guarantees Are emails valid evidence for agreement? - correct answer Yes, the typed name can be accepted What is an offer? - correct answer A certain statement of willingness on specific terms What is an invitation to treat? - correct answer An invitation to other parties to make an offer How can an offer be terminated? - correct answer - rejection - counter-offer (not a request for info) - lapse of time - revocation - failure of precondition What is acceptance? - correct answer Unqualified agreement to all terms of the offer (some act is required to accept) When is acceptance effective? - correct answer Generally when it is communicated to the offeror, but it can be waived e.g. In reward contracts. For postal acceptance, this is when it is posted (as long as it is correctly posted and not overridden in the contract)