Principles of Business Quiz #4 Form 5_ Name:_______________________________

1. What are the elements of a valid simple contract? (4 marks)

______________________________________________________________________________
______________________________________________________________________________

2. Distinguish between simple contract and speciality contract. (2 marks)

______________________________________________________________________________
______________________________________________________________________________

3. Explain what an ‘invitation to treat’ is and give 1 example. (2 marks)

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

4. When may an offer be revoked? (2 marks)

______________________________________________________________________________
______________________________________________________________________________

5. State the purpose of the following documents: (5 marks)

 Quotation -
____________________________________________________________________
 Pro forma invoice -
______________________________________________________________
 Bill of lading -
___________________________________________________________________
 Stock card -
____________________________________________________________________
 Order form -
___________________________________________________________________

6. Distinguish between insurance and assurance. (2 marks)

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

7. Outline the principles of insurance. (3 marks)

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________