CILEx L3 Contract Law Fundamentals

Question 1

What are the three essential elements required to form a valid contract?

Accepted Answer

Offer, acceptance, and consideration

Answer

Offer, intention, and capacity

Answer

Agreement, writing, and witnesses

Answer

Offer, payment, and delivery

Question 2

What is an 'offer' in contract law?

Accepted Answer

A definite proposal to be bound on specific terms, capable of acceptance

Answer

Any statement of willingness to negotiate

Answer

An advertisement for goods or services

Answer

A statement of price made in a shop

Question 3

What is an 'invitation to treat'?

Accepted Answer

An invitation to make an offer, not an offer itself

Answer

A formal offer to enter into a contract

Answer

An acceptance of contractual terms

Answer

A counter-offer in negotiations

Question 4

What is 'consideration' in contract law?

Accepted Answer

Something of value given by each party in exchange for the other's promise

Answer

The parties' careful thought before contracting

Answer

The subject matter of the contract

Answer

The written terms of the agreement

Question 5

Which case established that consideration must be sufficient but need not be adequate?

Accepted Answer

Chappell v Nestlé [1960]

Answer

Carlill v Carbolic Smoke Ball Co [1893]

Answer

Foakes v Beer [1884]

Answer

Williams v Roffey [1991]

Question 6

What does 'intention to create legal relations' mean?

Accepted Answer

The parties intend their agreement to be legally binding and enforceable by the courts

Answer

The parties intend to write down the contract

Answer

The parties have considered all legal implications

Answer

The parties have sought legal advice before contracting