GSP165: Explain in Detail Each one of the Basic Elements that must be Present in Making a valid and Binding Contract, Making Distinctions Between These Elements and Related Concepts: The Law and You Assignment, SUSS, Singapore

Question 1

In your own words, outline and explain in detail each one of the basic elements that must be present in making a valid and binding contract, making distinctions between these elements and related concepts, for example, invitations to treat, counteroffer, etc.

Question 2 to 11

MCQ – Please apply your knowledge of contract law and choose the most appropriate answer to the following questions.

2. An offer is:-
A. An expression of the intention of one person that he may wish to do business.
B. An expression of the idea that a person may wish to enter into a business at some point.
C. An indication by a person that he was thinking of selling one of his fishes.
D. An indication by a person that he was ready to sell one of his fishes (which won a competition recently) at a price that is $1,000 above its current market price.

3. An invitation to treat is not an offer. Which one of the following is an invitation to treat?
A. Mary said that she would sell her fish tank to John for $300.
B. Mary said that she would sell her fish tank to John at a price that was $150
less than what she would be paying for her new fish tank next Friday.
C. Mary said that she wished to sell her fish tank, and asked if John would be interested to buy it.
D. Mary said that John may have her fish tank if he gave her $250 by 12 noon that same day

4. Which of the following will result from a counteroffer being made to an offer?
A. The first offer remains valid.
B. Finalising the terms of the initial offer.
C. Making changes to the terms of the offer.
D. A concluded and a binding agreement is made.

5. Which of the following contain matters not essential for a valid contract at law?
A. Intention to create legal relations, offer acceptance and consideration.
B. Offer, clarification of terms and reasons for asking the clarifications.
C. Offer and acceptance.
D. Offer and valid consideration.

6. A counter offer will have the following effect, or effects:-
A. A counter offer will revoke the offer.
B. A counteroffer will be a fresh offer, in place of the first offer.
C. Once a counteroffer is made, one cannot revive the first offer any longer.
D. All of the above.

7. Which of the following factors will terminate an offer?
A. Lapse of time – expiry of a deadline set by the offeror.
B. Counteroffer by the offeree.
C. Revocation by the offeror before acceptance by the offeree.
D. All of the above.

8. Consideration must be present to have a valid contract. Which of the following statements about consideration is true?
A. Consideration must move from promisor to promisee.
B. If the consideration is not sufficient to reflect the market value of the object being sold, it is not good consideration.
C. No consideration is needed if a contract is executed under seal.
D. Past consideration may be good enough if both parties agree to accept it.

9. Which of the following statements is false?
A. Past consideration is no consideration.
B. A contract to murder is a valid contract that can be enforced.
C. The terms of an offer must be clear enough to identify the subject of the contract.
D. A contract for the sale of land must be evidenced in writing.

10. Which of the following are vitiating factors that can render a contract void?
A. Illegality
B. Duress
C. Misrepresentation
D. All of the above

11. In order to make a binding contract, acceptance must be:-
A. Immediate
B. Secret
C. In writing only
D. Unconditional

Question 12

Sara owns a shop that sells a variety of art items. She handpicks the items for sale herself, and carefully displays them, each with a price tag carefully arranged on the shelves. She has a very expensive replica of an art piece in her shop by a famous artist, Salvador Dali, which is called “The Persistence of Memory”. It is a piece that she admires very much and was keeping for herself. Sara kept the Dali painting replica in a corner of her shop until she could find the perfect spot to display it.

One day, Peter walked into Sara’s shop. He was browsing the items on the shelves when the painting in the corner caught his attention. Peter was a big fan of Dali’s works, and he immediately realised that it was a very good replica. Peter also noticed that there was a price tag of $2,000 on the frame of the painting, but not attached to it. Peter took the painting and the price tag to Sara at the payment counter of the shop and handed her his credit card for
payment.

When Sara saw the painting, she almost fainted! She explained to Peter that the painting was her personal belonging and that it was not for sale. Peter became upset. He pointed to the price tag that was found loosely sitting on the painting and demanded that Sara sold it to him for $2,000 as stated on the tag. Sara told him that the tag belonged to the painting that was hanging above the Dali painting and that it must have fallen off onto the Dali painting.

Peter was not happy. He has come to you for your opinion on the following questions. Please answer briefly:-

(a) Identify the nature of a price tag that is placed on an item in the shelves of Sara’s shop.

(b) Assume that the price tag was firmly attached to the Dali replica. Apply your knowledge of contract law to identify the nature of the price tag this time.

(c) Peter argues that the price tag was Sarah’s offer. Therefore, when Peter picked up the Dali replica painting and presented his credit card to Sara at the checkout, there was a binding contract because he accepted the price offered on the price tag.

Cite the relevant contract law principles to each of the facts that Peter has, presented and make your own informed decision as to whether Peter’s arguments were correct at law.

Question 13

When a breach of contract happens, there are several remedies that the party who did not breach the contract could get at law. Damages are one such remedy. Specific performance is another remedy.

a) Please state in your own words what “Damages” means. Please give an example to explain your answer.
b) What is “Specific Performance”? Please give an example to explain your answer.

Question 14

Name 4 ways by which an offer may be terminated.
Question 15 Name one vitiating factor, stating:

(i) What it means, in your own words, and
(ii) What its effect on a contract would be.

Question 16

Beth agreed to sell, at $95,900, to Luke (and Luke agreed excitedly to buy) a unique sculpture by a famous artist, who passed away recently. She told him that she would wrap the sculpture up for him and that he could come back the next day to collect it and to make his payment. Luke was so excited that he told Beth he was going to get his contractors to immediately install special lightings to showcase the sculpture. He promised to be back with the payment first thing in the morning the next day.

After Luke left Beth’s art gallery, another customer (Marina) walked in and offered double the price that Luke was willing to pay. Beth was greedy and could not resist accepting Marina’s offer.

When Luke came back the next morning, he was horrified to find out that Beth had breached the contract that she made with him and that she had sold the sculpture to Marina. He saw the sculpture with Marina’s name on it.

Luke wants to sue Beth, especially after he had spent S$10,000 installing special lights in the corner of his dining room to showcase the sculpture. Please identify the relevant facts for Luke to understand his position. Then, inform Luke what, in your opinion, would be the best remedy that he can consider for such a breach of contract.