CONTRACT LAW EXAM 2025
QUESTIONS AND ANSWERS
What is a contract? - ....ANSWER ...-A contract is an agreement between
two or more parties which is binding in law. This means that the agreement creates
rights and obligations which the courts may enforce.
What is a deed? - ....ANSWER ...-A type of contract.
They must be "signed, sealed, delivered" to be valid.
Used when no consideration is being exchanged.
What is a simple contract? - ....ANSWER ...-A type of contract. Every other
contract that is not a deed.
What is executorty consideration? - ....ANSWER ...-Also known as future
consideration. Where there is a promise to do something in the future. Both parties
have not yet "executed" their promise.
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,What is executed consideration? - ....ANSWER ...-An act performed in
exchange for a promise. One party makes a promise and the other performs an act
as consideration for that promise.
What is a bilateral contract? - ....ANSWER ...-An agreement between two
parties in which each side agrees to fulfil their side of the bargain.
What is a unilateral contract? - ....ANSWER ...-One party promises to do
something in return for an act.
Acceptance happens when the offeree does the act.
Only the party who makes the promise to give something is bound. The exchange
of consideration is the promise to pay given for the act.
What are the requirements for an agreement? - ....ANSWER ...-Offer and an
Acceptance are required to make an agreement, the first element of a contract.
This applied to both bilateral and unilateral contracts.
What are the two types of offer? - ....ANSWER ...-Bilateral offer- an offer to
exchange one thing for another.
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,Unilateral offer- promise to do something in return for another party performing
an act.
What are the requirements for a valid offer? - ....ANSWER ...-Clear and
certain with the intention to be bound
What is an invitation to treat? - ....ANSWER ...-An invitation to treat is the
first step in negotiations. It is inviting the other party to make an offer.
It is not an offer!!!
When is an advert not an invitation to treat? - ....ANSWER ...-When it is in
fact a unilateral offer. You need to check the facts: is it a promise to pay or give
money in return for an act?
When is an auction not an invitation to treat? - ....ANSWER ...-When it is an
action without reserve. This is when an item will definitely be sold, regardless of
price, usually to the highest bidder. This makes a unilateral contract.
When is an invitation to tender not an invitation to treat? - ....ANSWER ...-
1) where the tender has an undertaking to accept the highest bidder.
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, 2) the tender is made to a specific number of parties and contains clear conditions
setting when and how the bids should be subitted.
How can an offer be terminated? - ....ANSWER ...-1- Acceptance
2- Rejection
3-Lapse
4-Revocation
What is the "battle of the forms"? - ....ANSWER ...-If you try and accept an
offer on new terms, this creates a counteroffer. This counteroffer ends the original
offer. In effect, you reject the original offer. Instead, the new terms proposed
become the new offer which can be accepted or rejected by the original offer. If
they now propose different terms, this again becomes another counteroffer.
How does an offer lapse? - ....ANSWER ...-1- time passing
2- death of a party
3- condition of acceptance not satisfied
How can a bilateral offer be revoked? - ....ANSWER ...-A bilateral offer can
be revokes at any time before acceptance, provided that the revocation reaches the
offeree before they accept it must actually reach/be communicated to the offeree.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
QUESTIONS AND ANSWERS
What is a contract? - ....ANSWER ...-A contract is an agreement between
two or more parties which is binding in law. This means that the agreement creates
rights and obligations which the courts may enforce.
What is a deed? - ....ANSWER ...-A type of contract.
They must be "signed, sealed, delivered" to be valid.
Used when no consideration is being exchanged.
What is a simple contract? - ....ANSWER ...-A type of contract. Every other
contract that is not a deed.
What is executorty consideration? - ....ANSWER ...-Also known as future
consideration. Where there is a promise to do something in the future. Both parties
have not yet "executed" their promise.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is executed consideration? - ....ANSWER ...-An act performed in
exchange for a promise. One party makes a promise and the other performs an act
as consideration for that promise.
What is a bilateral contract? - ....ANSWER ...-An agreement between two
parties in which each side agrees to fulfil their side of the bargain.
What is a unilateral contract? - ....ANSWER ...-One party promises to do
something in return for an act.
Acceptance happens when the offeree does the act.
Only the party who makes the promise to give something is bound. The exchange
of consideration is the promise to pay given for the act.
What are the requirements for an agreement? - ....ANSWER ...-Offer and an
Acceptance are required to make an agreement, the first element of a contract.
This applied to both bilateral and unilateral contracts.
What are the two types of offer? - ....ANSWER ...-Bilateral offer- an offer to
exchange one thing for another.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,Unilateral offer- promise to do something in return for another party performing
an act.
What are the requirements for a valid offer? - ....ANSWER ...-Clear and
certain with the intention to be bound
What is an invitation to treat? - ....ANSWER ...-An invitation to treat is the
first step in negotiations. It is inviting the other party to make an offer.
It is not an offer!!!
When is an advert not an invitation to treat? - ....ANSWER ...-When it is in
fact a unilateral offer. You need to check the facts: is it a promise to pay or give
money in return for an act?
When is an auction not an invitation to treat? - ....ANSWER ...-When it is an
action without reserve. This is when an item will definitely be sold, regardless of
price, usually to the highest bidder. This makes a unilateral contract.
When is an invitation to tender not an invitation to treat? - ....ANSWER ...-
1) where the tender has an undertaking to accept the highest bidder.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, 2) the tender is made to a specific number of parties and contains clear conditions
setting when and how the bids should be subitted.
How can an offer be terminated? - ....ANSWER ...-1- Acceptance
2- Rejection
3-Lapse
4-Revocation
What is the "battle of the forms"? - ....ANSWER ...-If you try and accept an
offer on new terms, this creates a counteroffer. This counteroffer ends the original
offer. In effect, you reject the original offer. Instead, the new terms proposed
become the new offer which can be accepted or rejected by the original offer. If
they now propose different terms, this again becomes another counteroffer.
How does an offer lapse? - ....ANSWER ...-1- time passing
2- death of a party
3- condition of acceptance not satisfied
How can a bilateral offer be revoked? - ....ANSWER ...-A bilateral offer can
be revokes at any time before acceptance, provided that the revocation reaches the
offeree before they accept it must actually reach/be communicated to the offeree.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
