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CIPS L4M3 Exam - Topic 2 Question 19 Discussion

Posted by Freeman on Jul 26, 2023 at 09:19 AM

In common law, which of the following documents is legally binding without the need for consideration?

Suggested Answer: A

To solve the question, you must distinguish the following notion:

- Offer: The case of Storer v Manchester City Council [1974] 1 WLR 1403 outlines that an offer is: An expression of willingness to contract on specified terms, with the intention that it is to be binding once accepted

- Acceptance: in order for a contract to be formed, the offer must be accepted. Acceptance represents the meeting of the minds of the parties to the contract -- both agree to exchange something for the other (payment, services, goods, etc.).

- Counter offer: is an offer made in response to a prior offer.

- Invitation to treat: An important distinction to make in contract law is that between an offer and an invitation to treat. An invitation to treat is usually an invitation for another party to make an offer. It may also be defined as an indication that a party is open to negotiation.

Here are some key distinctions of offers and invitation to treats.

Offer:

* Certain promise to be bound

* Clear and specified terms

* The conduct or words of the party show certainty

* There is no room for negotiation

Invitation to treat:

* There is room for negotiation

* There is an invitation for offers

* There is a request for information

* Lack of certainty

In the scenario above, initially Michelle just gives an invitation to treat because she is asking whether Hannah is interested to buy her car (request for information from Hannah). Hannah may reject or go into a negotiation with Michelle. Then, Hannah makes an offer by taking the money and shows her intention to be legally bound. At this point, when Hannah's offer is present, Michelle can accept or reject. When she rejects, the contract is not formed. The answer must be 'No, because Michelle has rejected Hannah's offer on buying the car'.


- Definition of Counter Offer

- Formation of the contract

- CIPS study guide page 28-35

LO 1, AC 1.2

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37 comments · newest first
GI
Gilberto 11 months ago
Just to clarify, a deed is enforceable even without a bargain.
WI
Wilda 12 months ago
Definitely C! It's a common misconception.
CR
Cristen 12 months ago
Wait, are you sure about that? I thought all contracts needed consideration.
RA
Ranee 1 year ago
Totally agree, it's all about the formalities!
AH
Ahmad 1 year ago
A deed is binding without consideration.
IR
Irma 1 year ago
I vaguely recall that one-off contracts might not be binding without consideration, but deeds definitely are.
KA
Kaitlyn 1 year ago
I'm torn between a deed and a hire purchase agreement. I thought hire purchase needed consideration, but I'm not entirely confident.
MA
Maryanne 1 year ago
I remember practicing a question about contracts and consideration, and I feel like deeds were mentioned as an exception.
TA
Tarra 1 year ago
I think a deed is the right answer since it doesn't require consideration to be binding, but I'm not completely sure.
ST
Stevie 1 year ago
Ah, I think problem management is the way to go here. It's about identifying and resolving the root causes of incidents, which would include normal service actions. That seems to fit the question best.
VE
Venita 1 year ago
I'm a bit confused on this one. Do I need to set up a GitHub action, or is there a way to integrate Azure Boards directly with the repo?
DE
Desirae 1 year ago
Okay, let me think this through. I know WSDL defines the service operations, so I'll focus on that part of the question.
LA
Lai 1 year ago
I think we might need to check the intercluster trunk settings. It sounds like something we went over in class about routing issues.
GE
Genevive 2 years ago
Isn't a deed like a legally binding promise to do something? I'm pretty sure that's the answer, but I might be barking up the wrong tree here.
BR
Brett 1 year ago
↳ replying to Genevive
No, a blanket order is not legally binding without consideration.
SE
Selene 1 year ago
↳ replying to Genevive
D) Blanket order
BR
Brandon 1 year ago
↳ replying to Genevive
Yes, a deed is legally binding without the need for consideration.
AL
Aliza 1 year ago
↳ replying to Genevive
C) Deed
BL
Blair 1 year ago
↳ replying to Genevive
A) One-off contract
HO
Holley 2 years ago
Haha, this question is a real deedly-doo, isn't it? I'm going with C) Deed, just to get this exam over with.
JA
Jamal 1 year ago
↳ replying to Holley
D) Blanket order
MA
Maryann 1 year ago
↳ replying to Holley
C) Deed
RU
Ruthann 1 year ago
↳ replying to Holley
B) Hire purchase agreement
MI
Michael 1 year ago
↳ replying to Holley
A) One-off contract
RO
Roslyn 2 years ago
Hmm, I'm not sure about that. I was leaning towards B) Hire purchase agreement, but I'll have to double-check the legal requirements.
AR
Art 1 year ago
↳ replying to Roslyn
D) Blanket order is not legally binding without consideration.
DO
Dorothy 1 year ago
↳ replying to Roslyn
I think you were right about B) Hire purchase agreement not needing consideration.
TR
Trinidad 1 year ago
↳ replying to Roslyn
C) Deed is also legally binding without consideration.
EL
Elfriede 1 year ago
↳ replying to Roslyn
A) One-off contract is legally binding without consideration.
RE
Rebbecca 1 year ago
↳ replying to Roslyn
D) Blanket order requires consideration to be legally binding.
LA
Lashandra 1 year ago
↳ replying to Roslyn
I think you were right to lean towards B) Hire purchase agreement.
ED
Edna 1 year ago
↳ replying to Roslyn
C) Deed is also legally binding without consideration.
KE
Keith 1 year ago
↳ replying to Roslyn
A) One-off contract is legally binding without consideration.
NO
Norah 2 years ago
I think the correct answer is C) Deed. A deed is a legally binding document that doesn't require consideration.
CO
Cordelia 2 years ago
I'm not sure, but I think a Deed makes sense because it's a formal document.
SC
Scot 2 years ago
I agree with Eun, a Deed is legally binding without consideration.
EU
Eun 2 years ago
I think the answer is C) Deed.
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