1 In a sale by auction thatis stated to be 'without reserve', at which point is an offer made?

A When the auctioneerpresents the goods being sold

B When a bid is made

C When the auctioneer'shammer falls

（Source from BPP）

(1 mark)

 

Answer：A 

In a sale by auction that isstated to be 'without reserve', the auctioneer presenting the goods for sale isthe offer and a bid represents acceptance..

 

2 Which of the following isan example of a standard form contract?

A A verbal agreement betweentwo private individuals

B A contract for the sale ofa house between two private individuals

C A contract for the supplyof electricity between a utility company and a private individual

D A contract of employmentbetween a private individual and a small local shop

（Source from BPP）

(2 marks)

 

Answer：C

 

A standard form contract is adocument set out by large organisations that states the terms that itscustomers will do business with it. There is no negotiation, either thecustomer accepts the terms or goes elsewhere. The contracts in the otheroptions include scope for negotiation.

 

3 Alina posted an offer toBob that she will sell her sofa for ￡100 on 1st June. Two days later, Bobreceived the offer, and call Alina that he will buy the sofa for ￡80, butAlina did not agree. 

 

After that Alina offered her sofa to Cindy for ￡100 bypost on 5th June. Cindy accepted it immediately by telephone aftershe received the letter on 7th June. On 10th June, Bobposted a letter to 

 

agree to pay ￡100 for the sofa., and this letter was receivedby Alina on 12th June.

A There is a contract betweenAlina and Cindy on 7th June

B There is a contract betweenAlina and Bob on 10th June

C There is a contract betweenAlina and Bob on 12th June

D there is no contractcreated

(2 marks)

 

Answer：A

 

The offer of Alina providedto Bob is termination when Bob only provide ￡80 forit. This is a kind of counter offer. Thus, Bob post a letter to acceptance theoriginal offer is invalid. The contract between Cindy and Alina formed on 7thJune when Cindy called for acceptance.