SQE1 Practice Questions - Solicitors Qualifying Examination Part 1 (Functioning Legal Knowledge) Exam

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A company advertised a smoke ball, promising £100 to anyone who used it as directed and still caught influenza, and stated it had deposited £1,000 in a bank to show sincerity. A user followed the directions and caught flu. Why is the company contractually bound to pay?

Because the advertisement was a mere invitation to treat Because advertisements can never amount to binding offers Because there was no consideration provided by the user Because the advertisement was a unilateral offer accepted by performance, with the bank deposit showing intention to be bound

Correct Answer:

Because the advertisement was a unilateral offer accepted by performance, with the bank deposit showing intention to be bound

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