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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 2Question 04
    Easy2 marksMultiple Choice
    The law of obligationsSection ASyllabus BCorporate and Business Law

    ACCA · Question 04 · The law of obligations

    'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can provide daily drone delivery services for your medical supplies at £500 per week. Please reply to discuss terms."

    In contract law, what is the legal status of this email?

    Answer options:

    A.

    A binding offer.

    B.

    An invitation to treat.

    C.

    A counter-offer.

    D.

    A declaration of intent.

    How to approach this question

    Analyze the wording 'reply to discuss terms'. This shows negotiations are still open, meaning it cannot be a firm offer.

    Full Answer

    B.An invitation to treat.✓ Correct
    An offer must be a definite promise to be bound on specific terms. The inclusion of 'Please reply to discuss terms' shows that AeroDyne is inviting negotiations, making it an invitation to treat rather than a firm offer.

    Common mistakes

    Confusing a price quotation with a legal offer. Quotations are generally invitations to treat unless explicitly stated otherwise.
    Question 03All questionsQuestion 05

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