Is a property listing a legal offer?

No — a listing or advertisement is an invitation to treat. The offer is made by the prospective buyer, which the seller is then free to accept or reject.

Can an agent be liable for repeating a seller's false claim?

Yes, in tort. The buyer's statutory claim under s 2(1) of the Misrepresentation Act lies against the seller, the other party to the contract, but an agent who relays a false statement can be liable in deceit or for negligent misstatement and faces CEA discipline. “I only repeated what the seller said” is not a complete defence, so verify material claims or attribute them.

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Paper 1 · Law of Contract & Agency · 26 min read

Contract & Agency Law for the RES Exam

Practise these sections, in sets of about 30:

Must-know for the exam

A valid contract needs offer, acceptance, consideration, intention to create legal relations, capacity and genuine consent; a property listing is only an invitation to treat.
A counter-offer destroys the original offer, but a request for information does not; revocation works only when the offeree learns of it, and silence is not acceptance.
Since 1 Mar 2009 18-to-20-year-olds contract as adults (Civil Law Act s 35), except land purchases, sales and mortgages and leases over 3 years.
Under s6(d) of the Civil Law Act, a contract for the sale or disposition of land must be evidenced in writing and signed, or it is unenforceable, not void.
The estate agency agreement is with the licensed estate agent; the salesperson, under a contract of service or for service, acts for the agency and still owes the client loyalty and care.
A unilateral mistake about a term the other party actually knew of makes a contract void (Chwee Kin Keong, [2005] SGCA 2); duress and undue influence make it voidable.
No term can exclude negligence liability for death or personal injury (UCTA s 2(1)); a consumer's promise to indemnify another for its negligence binds only if reasonable (s 4).
Breach of a condition allows termination; breach of a warranty gives damages unless it deprives the innocent party of substantially the whole benefit (RDC Concrete [2007] SGCA 39).
With no actual or apparent authority and no ratification, the principal is not bound and the agent is personally liable for breach of warranty of authority.
Ratification relates back to the act but needs an agent who acted for that principal, full knowledge and adoption of the whole deal; the principal's death ends authority at once.

On this page · 20 sections

Every property transaction is a web of contracts (OTP, sale & purchase, tenancy agreement) entered into through agents. The RES exam tests whether you understand how a contract forms, when it can be undone, and what an agent is and isn't allowed to do.

Elements of a valid contract

Offer — a definite promise to be bound on specific terms.
Acceptance — unqualified agreement to the offer's terms.
Consideration — something of value exchanged by each side.
Intention to create legal relations.
Capacity — the parties must be legally able to contract. Since 1 Mar 2009 a person aged 18 to 20 contracts as if of full age (Civil Law Act s 35), except contracts to buy, sell, mortgage or settle land (a lease of up to 3 years is allowed) and leases over 3 years, which still need 21.
Genuine consent & legality — no vitiating factor (fraud, duress), and a lawful purpose.

An advertisement or property listing is an invitation to treat, not an offer — the buyer makes the offer, which the seller may accept or reject. Get this backwards and the whole formation analysis goes wrong.

Swipe sideways to see all of it.

The order matters: the listing invites offers, the buyer offers, the seller accepts. A counter-offer resets the chain.

Offer & acceptance, in motion

A counter-offer destroys the original offer — the original can no longer be accepted.
An offer can be revoked any time before acceptance, but revocation works only when the offeree learns of it, from the offeror or from another reliable source.
An offer lapses after a reasonable time, on a stated deadline, or on the offeror's death.
Acceptance must be communicated to the offeror, and on the offeror's terms.
Silence is not acceptance. An offeror cannot say 'if I hear nothing, we have a deal'. You accept by the method the offer invites, or by conduct that shows unqualified assent.
Posted acceptance. Where post is a reasonable or contemplated way to reply, acceptance is complete on posting, not on receipt. Singapore applies this postal rule only where the parties intended it ([2017] SGHC 242).
A question is not a counter-offer. Asking for information, or whether the seller would consider a lower price, leaves the offer open. Proposing a different price rejects and destroys it.
Tenders. A call for tenders is normally an invitation to treat; each tender is an offer the owner may reject. It is an offer only if it promises to accept the highest (or lowest) conforming bid (UOL Development (Novena) v Commissioner of Stamp Duties [2007] SGHC 173).

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Quick self-check · 5 questions

Can you answer these without scrolling up?

Say your answer out loud, then tap to check it.

Can a 19-year-old sign a binding OTP to buy a flat as if of full age?Show answer
No. Since 1 Mar 2009 those aged 18 to 20 contract as if of full age (Civil Law Act s 35), except contracts to buy, sell, mortgage or settle land and leases over 3 years, which still need 21.
What is the difference between a buyer asking whether the seller would consider a lower price and proposing a lower price?Show answer
A question leaves the offer open; a counter-offer destroys it. Proposing a different price rejects the original offer, which can no longer be accepted (Hyde v Wrench).
A seller agrees verbally to sell his condo and later refuses. Is the deal void?Show answer
No, it is unenforceable, not void. Civil Law Act s 6(d) requires a land contract to be evidenced in writing and signed by the party to be charged. A party who acted on it may still seek specific performance on part performance.
Under Misrepresentation Act s 2(1), who faces rescission and damages, the seller or the salesperson?Show answer
The seller, because s 2(1) runs only against another party to the contract. The salesperson's exposure is in tort (deceit or negligent misstatement) and under the CEA Code of Ethics.
A salesperson claims she has authority to accept offers. Does that create apparent authority?Show answer
No. Only the principal's words or conduct create apparent authority. Ask what the third party reasonably believed from the principal's conduct, not from the agent's claim or private instructions.

Common questions

Is a property listing a legal offer?: No — a listing or advertisement is an invitation to treat. The offer is made by the prospective buyer, which the seller is then free to accept or reject.
Can an agent be liable for repeating a seller's false claim?: Yes, in tort. The buyer's statutory claim under s 2(1) of the Misrepresentation Act lies against the seller, the other party to the contract, but an agent who relays a false statement can be liable in deceit or for negligent misstatement and faces CEA discipline. “I only repeated what the seller said” is not a complete defence, so verify material claims or attribute them.

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Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).