Exam 3: Formation of Contracts

Which of the following shows the use of the doctrine of promissory estoppel?

Martin offered to buy a property for $200 000,"offer to remain open until 5:00 p.m.on Thursday,January 21." Which one of the following situations will not cause the offer to end?

Negotiations between Dave and Mary resulted in the following agreement: Dave would sell his property to Mary for the sum of $150 000,closing date to be August 10,2004.When the two completed their discussion,Mary paid Dave $5000 as part payment of the purchase price and received a receipt.The contract was not in writing.On August 10,Mary tendered the remainder of the money,but Dave refused to convey the property.Mary sued Dave for breach of contract.On these facts,which of the following is true? (Assume that all facts can be proved.)

Joe offered to sell Harry his car for $500,but Harry said he needed some time to think about it.A couple of days later,Harry phoned Joe to say that he'd give Joe $450 for the car.Joe refused to take this.Then Harry said,"All right,I'll accept your offer for $500." Joe said that he'd changed his mind and refused to go through with the deal.Harry sued.Explain Joe's legal liability.

Which of the following can be used as consideration?

Which of the following contracts is void?

Which of the following agreements has to be made in writing under the original Statute of Frauds in order to be enforceable?

Which of the following would best satisfy the requirements for a good legal offer?

Jones was a caterer; Smith was a florist.Jones won a contract to provide a banquet for a convention of florists.He wanted to decorate the hall with flowers.He sent a letter to Smith describing what he wanted and asking for a price quote.Smith responded in a letter dated January 5,offering to supply the flowers for $5000.Jones received the letter on January 10 and responded on the same date,saying the price was too high and that he would pay $4500.While that letter was in the mail,but before it had been received by Smith,Jones learned that the convention was on artificial flowers and the organizers wanted no real flowers on display.On January 13,Jones quickly sent another letter telling Smith to ignore the letter of January 10 and that he wouldn't need any flowers at this time.This letter of the January 13 was received on January 18.Smith had received the letter of January 10 on January 15 and sent a letter of acceptance on the same day,and had placed orders with his suppliers for the flowers.The letter of acceptance was received by Jones on January 20.Is there a contract between Jones and Smith? Explain.

Distinguish between an offer and an invitation.

Last week,Chris offered to sell her printer to a classmate for $200.Her offer included these exact words: "This offer to be open until noon,February 20." She now has second thoughts and thinks she should give or sell it to her brother,who has gone back to school.She wants to end the offer.Which of the following would not end the offer?

Only contracts involving significant sums of money must be in writing to be enforceable.

Which one of the following will cause an offer to end?

Joe was a contractor and he hired subtrades to help build his houses.Sam was a framer and had agreed to frame four houses for Joe for a set price.Joe was to supply the materials.After two houses were completed,Joe's suppliers increased the cost of lumber,and Joe told Sam that he could no longer pay him the amount on which they'd agreed.Sam agreed to take 15% less for the other two jobs,which were then completed.During this time,regular payments were made from Joe to Sam,but the total amount received was 15% lower than the originally agreed-upon price for the last two jobs.Sam sued Joe for the original contract price,claiming that he'd received no consideration for his agreement to take less for the last two jobs.Explain what defences may be available to Joe under these circumstances and his likelihood of success.

An offer will end when the subject matter of the offer is sold to someone else.

Distinguish between an infant's liability for torts and for contracts.

List the five ingredients necessary to form a contract.

"One of the basic precepts in contract law is that any bargain struck must be fair to be enforceable." Explain the accuracy of this statement.

Given the provisions of the Statute of Frauds,which of the following contracts should be evidenced in writing?

Assuming that all other elements of a contract are present,which of the following would most likely be held to be a binding contract,considering only the requirement that the object of a contract must be legal and not contrary to the public interest?