Question 1

Indicate the correct statement about consideration.

Accepted Answer

A) Consideration is "the price for which the promise (or the act)of the other is bought." 
B) In a unilateral contract,the performance of the promisee provides no consideration to the promisor. 
C) In a bilateral contract,the exchange of promises does not provide consideration for both parties. 
D) An altered course of action (e.g.,forbearance)is not good consideration. 
E) The common law holds that consideration must be adequate to ensure that contracts are fair bargains. 
A) Consideration is "the price for which the promise (or the act)of the other is bought." 
B) In a unilateral contract,the performance of the promisee provides no consideration to the promisor. 
C) In a bilateral contract,the exchange of promises does not provide consideration for both parties. 
D) An altered course of action (e.g.,forbearance)is not good consideration. 
E) The common law holds that consideration must be adequate to ensure that contracts are fair bargains.

Question 2

One of the requirements in a contract is that there must be an exchange of consideration between the parties.Explain what is meant by consideration.

Accepted Answer

Consideration is usually thought of as t

Question 3

An ad in the newspaper providing for a reward for return of a lost dog is an example of an invitation to treat.

Accepted Answer

A) True 
 B)False

Question 4

For the requirement of consideration to be satisfied,at least one of the parties must have performed what was promised.

Accepted Answer

A) True 
 B)False

Question 5

If an offer is made by mail and an acceptance by mail is requested,when does a letter revoking the previous offer actually take effect?

Accepted Answer

A) at the time it is posted 
B) at any time before a letter of acceptance is received by the offeror 
C) at the time it is received,if before acceptance 
D) Never.A revocation must be done in person. 
E) at any time before actual performance of the contract has begun 
A) at the time it is posted 
B) at any time before a letter of acceptance is received by the offeror 
C) at the time it is received,if before acceptance 
D) Never.A revocation must be done in person. 
E) at any time before actual performance of the contract has begun

Question 6

Mary bought a new Macintosh computer and advertised her old computer system for sale for $1500.Mr.Jones offered to pay $1000.Mary said no,that she wanted $1500.Mr.Jones offered $1250.Mary rejected that offer and said she wanted $1500,but then said,"I withdraw my offer,I've decided to give it to a school and apply for the tax benefit." Mr.Jones said,"All right,I'll accept your offer of $1500." Which of the following is true?

Accepted Answer

A) There is a contract and Mr.Jones has to pay a reasonable price for Mary's old computer. 
B) There is a contract,because once a seller makes an offer she cannot change her mind; she is bound to receive an acceptance. 
C) There is no contract because Mary revoked the offer before Mr.Jones attempted to accept it. 
D) There is a contract because at some point in time Mary was willing to sell and Mr.Jones was willing to buy the computer system for $1500. 
E) There is no contract because the last offer had lapsed. 
A) There is a contract and Mr.Jones has to pay a reasonable price for Mary's old computer. 
B) There is a contract,because once a seller makes an offer she cannot change her mind; she is bound to receive an acceptance. 
C) There is no contract because Mary revoked the offer before Mr.Jones attempted to accept it. 
D) There is a contract because at some point in time Mary was willing to sell and Mr.Jones was willing to buy the computer system for $1500. 
E) There is no contract because the last offer had lapsed.

Question 7

A revocation of an offer is effective only when it has been communicated to the offeree.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an ingredient necessary to form a contract?

Accepted Answer

A) exemption clauses 
B) fairness 
C) privity 
D) capacity 
E) assignment 
A) exemption clauses 
B) fairness 
C) privity 
D) capacity 
E) assignment

Question 9

George contracted with Bob to have a racing bike modified for him to be delivered on February 20,for a race on February 22.The price for the modification was agreed on as$100.About February 10,George became nervous about the bike being finished on time and went to see Bob.Bob said that he was very busy,but if he really wanted to be sure that it would be finished on time,George would have to pay him an extra $25 so he could pay his employees overtime.George agreed and Bob completed the modifications as requested,on time.How much does George legally owe?

Accepted Answer

A) only $100 because Bob had an existing duty to modify the bike and the price was settled 
B) $25 because past consideration is no consideration 
C) $125 because Bob gave consideration for George's promise to pay the additional $25 
D) $100 plus whatever it cost for the overtime 
E) a reasonable amount only 
A) only $100 because Bob had an existing duty to modify the bike and the price was settled 
B) $25 because past consideration is no consideration 
C) $125 because Bob gave consideration for George's promise to pay the additional $25 
D) $100 plus whatever it cost for the overtime 
E) a reasonable amount only

Question 10

Harry saw Joe in his classic Buick at a local drive-in restaurant,and told Joe that he'd like to buy the car.He offered Joe $1500.Joe said he had to think about it and that he'd let Harry know.Two days later,Joe decided that he needed the money and couldn't afford to keep the car.He wrote Harry a letter accepting the offer and mailed it that afternoon.The next day,Harry phoned Joe,saying that he'd changed his mind and that he needed the money for something else.Joe told Harry about the letter,and in fact Harry received the letter later that day.Joe insisted on going through with the deal.Explain the legal liability of the parties.

Accepted Answer

This can go both ways.If it was reasonab

Question 11

For the post-box rule to apply,the offer must be made by mail.

Accepted Answer

A) True 
 B)False

Question 12

Because of the Charter of Rights and Freedoms,status Indians no longer have their capacity to contract limited.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would be resolved by a contract and would not need the use of promissory estoppel? Assume that all facts given can be proven.

Accepted Answer

A) The contract called for the band to play for 3 hours,but the club owner agreed to pay the same price for only 2.5 hours of play.Later,the club owner sued for breach of contract. 
B) The painter contracted with Frank to paint the kitchen for $400.When the painter found the job more difficult than he had expected,Frank said he would still pay $400 but that the painter didn't have to do all the work agreed upon; he didn't have to paint inside the cabinets.After the job was completed,Frank sued the painter for breach of contract. 
C) The landlord forgave a tenant half of his October rent because the tenant had had an accident at work.Two days ago,the landlord sued for the unpaid rent on the grounds that his promise to forgive it was gratuitous. 
D) Jon negotiated with the bank,which agreed to take $18 000 in full satisfaction of an overdue debt of $20 000.A week after Jon paid the $18 000,he was sued by the bank for the balance. 
E) Kent loaned $3000 to Joan,who promised to pay back $3300 on January 3.Kent then called Joan and said that he would settle for $3000 if she would repay it that day,November 28.She paid on the 28th.On January 5,Kent sued Joan for the other $300. 
A) The contract called for the band to play for 3 hours,but the club owner agreed to pay the same price for only 2.5 hours of play.Later,the club owner sued for breach of contract. 
B) The painter contracted with Frank to paint the kitchen for $400.When the painter found the job more difficult than he had expected,Frank said he would still pay $400 but that the painter didn't have to do all the work agreed upon; he didn't have to paint inside the cabinets.After the job was completed,Frank sued the painter for breach of contract. 
C) The landlord forgave a tenant half of his October rent because the tenant had had an accident at work.Two days ago,the landlord sued for the unpaid rent on the grounds that his promise to forgive it was gratuitous. 
D) Jon negotiated with the bank,which agreed to take $18 000 in full satisfaction of an overdue debt of $20 000.A week after Jon paid the $18 000,he was sued by the bank for the balance. 
E) Kent loaned $3000 to Joan,who promised to pay back $3300 on January 3.Kent then called Joan and said that he would settle for $3000 if she would repay it that day,November 28.She paid on the 28th.On January 5,Kent sued Joan for the other $300.

Question 14

All contracts must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

A contract is a single promise,made by one person to another,enforceable in court.

Accepted Answer

A) True 
 B)False

Question 16

Sam agreed to loan Carmine $5000 on the understanding that the monies would be repaid with interest within thirty days.The loan was not repaid.As a result,Sam entered into a separate contract with Ronnie and George.Sam agreed to pay them $500 in exchange for them agreeing to attend at Carmine's residence and "rough him up" reminding him that the initial loan was delinquent.Ronnie and George took the money and attended at the local casino instead of going to Carmine's house.Sam sued them for breach of contract.His claim in court will:

Accepted Answer

A) succeed because the essential elements of a contract exist. 
B) succeed because they clearly failed to comply with their contractual obligations. 
C) fail because they still have time to complete the attendance at Carmine's residence. 
D) fail because the essence of the contract contemplates an illegal act and as such is void. 
E) succeed because the monies were not repaid by the time of the trial. 
A) succeed because the essential elements of a contract exist. 
B) succeed because they clearly failed to comply with their contractual obligations. 
C) fail because they still have time to complete the attendance at Carmine's residence. 
D) fail because the essence of the contract contemplates an illegal act and as such is void. 
E) succeed because the monies were not repaid by the time of the trial.

Question 17

Joe offered to sell Harry his car for a specific price,and Harry indicated that he needed some time to think about it.Two days later,Joe sold the car to a third party.That afternoon,Harry phoned Joe and told him that he had decided to accept the offer and that he'd buy the car.Joe told Harry that it was too late; he had sold the car to someone else.Harry said that it had been offered to him first,and he insisted that Joe go through with the contract.Explain the legal liability of the parties.

Accepted Answer

This is a binding contract,assuming that

Question 18

In contract cases,the court generally:

Accepted Answer

A) attempts to punish the party in breach of the contract by imposing a sentence. 
B) does not look to see if the bargain is fair. 
C) will require the recipient of a service to pay a reasonable price where it is determined that the agreed-upon price was too low. 
D) will rewrite an agreement for the parties if their existing agreement did not include all essential terms. 
E) will enforce all promises. 
A) attempts to punish the party in breach of the contract by imposing a sentence. 
B) does not look to see if the bargain is fair. 
C) will require the recipient of a service to pay a reasonable price where it is determined that the agreed-upon price was too low. 
D) will rewrite an agreement for the parties if their existing agreement did not include all essential terms. 
E) will enforce all promises.

Question 19

The post-box rule makes it clear that,when people choose to communicate by mail,they take the risk of delay or loss,and the acceptance as a result will be binding only when or if received.

Accepted Answer

A) True 
 B)False

Question 20

Harry saw Joe in his classic Buick at a local drive-in restaurant and talked about wanting to buy the car.Joe offered to sell it to him for $1500.Harry said he needed some time to think about it and that he would send Joe a letter.The next day,Joe changed his mind and mailed Harry a letter of revocation.The day after that,before Harry had received the letter of revocation,he sent a letter of acceptance to Joe.The next day,the two letters arrived at their respective destinations,Joe receiving Harry's letter of acceptance just after Harry received Joe's letter of revocation.Explain the legal liabilities of the parties.

Accepted Answer

There is a legally binding contract here

Indicate the correct statement about consideration.

One of the requirements in a contract is that there must be an exchange of consideration between the parties.Explain what is meant by consideration.

An ad in the newspaper providing for a reward for return of a lost dog is an example of an invitation to treat.

For the requirement of consideration to be satisfied,at least one of the parties must have performed what was promised.

If an offer is made by mail and an acceptance by mail is requested,when does a letter revoking the previous offer actually take effect?

A revocation of an offer is effective only when it has been communicated to the offeree.

Which of the following is an ingredient necessary to form a contract?

For the post-box rule to apply,the offer must be made by mail.

Because of the Charter of Rights and Freedoms,status Indians no longer have their capacity to contract limited.

Which of the following would be resolved by a contract and would not need the use of promissory estoppel? Assume that all facts given can be proven.

All contracts must be in writing to be enforceable.

A contract is a single promise,made by one person to another,enforceable in court.

In contract cases,the court generally:

The post-box rule makes it clear that,when people choose to communicate by mail,they take the risk of delay or loss,and the acceptance as a result will be binding only when or if received.

The Canadian Legal System

Torts and Professional Liability

Enforcing Contractual Obligations

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters

Exam 3: Formation of Contracts

Indicate the correct statement about consideration.

One of the requirements in a contract is that there must be an exchange of consideration between the parties.Explain what is meant by consideration.

An ad in the newspaper providing for a reward for return of a lost dog is an example of an invitation to treat.

For the requirement of consideration to be satisfied,at least one of the parties must have performed what was promised.

If an offer is made by mail and an acceptance by mail is requested,when does a letter revoking the previous offer actually take effect?

A revocation of an offer is effective only when it has been communicated to the offeree.

Which of the following is an ingredient necessary to form a contract?

For the post-box rule to apply,the offer must be made by mail.

Because of the Charter of Rights and Freedoms,status Indians no longer have their capacity to contract limited.

Which of the following would be resolved by a contract and would not need the use of promissory estoppel? Assume that all facts given can be proven.

All contracts must be in writing to be enforceable.

A contract is a single promise,made by one person to another,enforceable in court.

In contract cases,the court generally:

The post-box rule makes it clear that,when people choose to communicate by mail,they take the risk of delay or loss,and the acceptance as a result will be binding only when or if received.

The Canadian Legal System

Torts and Professional Liability

Enforcing Contractual Obligations

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters