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WalesLegal StudiesQuick questions
The Law of Contract
Quick questions on Formation of contract: offer, acceptance, consideration and intention - WJEC A-Level Law
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is consideration?Show answer
Consideration is the price each party pays for the other's promise: "some right, interest, profit or benefit" to one party, or "some forbearance, detriment, loss or responsibility" to the other (Currie v Misa). The rules are: consideration must be sufficient but need not be adequate (it must have some value but need not be a fair price, Chappell v Nestle); it must move from the promisee; and past consideration is not good consideration (Re McArdle), subject to narrow exceptions.
What are intention to create legal relations?Show answer
The law presumes that parties to a commercial agreement intend to create legal relations, and presumes the opposite for social and domestic agreements. The domestic presumption can be rebutted by evidence: in Balfour v Balfour a husband's promise to a still-cohabiting wife was not binding, but in Merritt v Merritt a written agreement made after the couple separated was intended to be legally binding.
What is q1?Show answer
What is the difference between an offer and an invitation to treat? [2 marks]
What is q2?Show answer
When is a postal acceptance effective? [2 marks]
What is q3?Show answer
Advise whether a valid contract has been formed on the facts. [20 marks]
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