SQE CONTRACT LAW EXAM 2025
QUESTIONS AND ANSWERS
Are goods on display offers or invitations to treat? - ....ANSWER ...-
Invitations to treat
Are advertisements offers or invitations to treat? - ....ANSWER ...-Generally
invitations to treat, but may amount to an offer if there is intention to be bound
Are adverts of a reward an offer or invitation to treat? - ....ANSWER ...-
Treated as offers
What is a 'reserve price' in an auction? - ....ANSWER ...-a minimum price
below which the auctioneer cannot sell property: bidders will be aware there is a
reserve price but they will not know what it is
What happens if an auctioneer does not accept a bid at a without reserve auction? -
....ANSWER ...-Auctioneer can be sued for breach of unilateral contract.
Damages will be the difference of the total value of product and the bid
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,How can acceptance of an offer be communicated? - ....ANSWER ...-By
words or conduct
Is a conditional response deemed to be an acceptance of an offer? -
....ANSWER ...-No. Conditional response is treated as a counter-offer,
effectively destroying original offer and representing a new offer that the other
party can accept or reject
When is acceptance by post effective? - ....ANSWER ...-As per postal rule,
letter of acceptance is effective when posted, even if the letter is lost in the post
What conditions must be effective for postal rule to apply? -
....ANSWER ...-It was reasonable in all the circumstances to use the post;
the letter was properly addressed, stamped and posted; the postal rule had not been
excluded by offeror
How can termination of an offer occur? - ....ANSWER ...-Rejection by
offeree, revocation of offer by offeror, lapse of time
Can an offeror revoke an offer if they promised to keep the offer open for a
certain period of time? - ....ANSWER ...-Yes, unless the offeree has given
something in return for the promise to keep the offer open
When is revocation effective when electronically communicated? -
....ANSWER ...-When it SHOULD HAVE been read
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, How should revocation be effected for offers made to the public at large? -
....ANSWER ...-Publish a notice of revocation in the same place as offer
with the same prominence
Does the postal rule apply to revocation? - ....ANSWER ...-No, only
acceptance
How does the operation of presumption apply to domestic and commercial
agreements? - ....ANSWER ...-Domestic: rebuttable presumption that parties
did not intend to create legal relations
Commercial: strong presumption parties intended agreement to have legal
consequences
What is the rule for consideration regarding sufficiency and adequacy? -
....ANSWER ...-Consideration must be sufficient, it need not be adequate
Is a promise to stop drinking alcohol sufficient consideration? -
....ANSWER ...-Yes- as a matter of public policy things that should be
positively encouraged against will be sufficient consideration. 'In consideration of
natural love and affection' would not be sufficient
Is past consideration good consideration? - ....ANSWER ...-Generally no
unless:
- the past act was done at the promisor's request
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
QUESTIONS AND ANSWERS
Are goods on display offers or invitations to treat? - ....ANSWER ...-
Invitations to treat
Are advertisements offers or invitations to treat? - ....ANSWER ...-Generally
invitations to treat, but may amount to an offer if there is intention to be bound
Are adverts of a reward an offer or invitation to treat? - ....ANSWER ...-
Treated as offers
What is a 'reserve price' in an auction? - ....ANSWER ...-a minimum price
below which the auctioneer cannot sell property: bidders will be aware there is a
reserve price but they will not know what it is
What happens if an auctioneer does not accept a bid at a without reserve auction? -
....ANSWER ...-Auctioneer can be sued for breach of unilateral contract.
Damages will be the difference of the total value of product and the bid
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,How can acceptance of an offer be communicated? - ....ANSWER ...-By
words or conduct
Is a conditional response deemed to be an acceptance of an offer? -
....ANSWER ...-No. Conditional response is treated as a counter-offer,
effectively destroying original offer and representing a new offer that the other
party can accept or reject
When is acceptance by post effective? - ....ANSWER ...-As per postal rule,
letter of acceptance is effective when posted, even if the letter is lost in the post
What conditions must be effective for postal rule to apply? -
....ANSWER ...-It was reasonable in all the circumstances to use the post;
the letter was properly addressed, stamped and posted; the postal rule had not been
excluded by offeror
How can termination of an offer occur? - ....ANSWER ...-Rejection by
offeree, revocation of offer by offeror, lapse of time
Can an offeror revoke an offer if they promised to keep the offer open for a
certain period of time? - ....ANSWER ...-Yes, unless the offeree has given
something in return for the promise to keep the offer open
When is revocation effective when electronically communicated? -
....ANSWER ...-When it SHOULD HAVE been read
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, How should revocation be effected for offers made to the public at large? -
....ANSWER ...-Publish a notice of revocation in the same place as offer
with the same prominence
Does the postal rule apply to revocation? - ....ANSWER ...-No, only
acceptance
How does the operation of presumption apply to domestic and commercial
agreements? - ....ANSWER ...-Domestic: rebuttable presumption that parties
did not intend to create legal relations
Commercial: strong presumption parties intended agreement to have legal
consequences
What is the rule for consideration regarding sufficiency and adequacy? -
....ANSWER ...-Consideration must be sufficient, it need not be adequate
Is a promise to stop drinking alcohol sufficient consideration? -
....ANSWER ...-Yes- as a matter of public policy things that should be
positively encouraged against will be sufficient consideration. 'In consideration of
natural love and affection' would not be sufficient
Is past consideration good consideration? - ....ANSWER ...-Generally no
unless:
- the past act was done at the promisor's request
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
