Question 1

Which of the following statements is correct with respect to the law of consideration?

Accepted Answer

A) Consideration must have some value but need not be specific. 
B) For a contract to be binding,something valuable must have changed hands.This consideration may have been paid before the agreement (past consideration)or at the time of the agreement (present consideration),but future consideration is no consideration. 
C) Without consideration or a seal,there can be no contract. 
D) The amount of consideration to be paid in a contract must be reasonable (that is,fair)from the point of view of each party. 
E) Consideration need not be specific,but both parties must get something out of the deal. 
A) Consideration must have some value but need not be specific. 
B) For a contract to be binding,something valuable must have changed hands.This consideration may have been paid before the agreement (past consideration)or at the time of the agreement (present consideration),but future consideration is no consideration. 
C) Without consideration or a seal,there can be no contract. 
D) The amount of consideration to be paid in a contract must be reasonable (that is,fair)from the point of view of each party. 
E) Consideration need not be specific,but both parties must get something out of the deal.

Question 2

What must be present in an offer before it qualifies as such?

Accepted Answer

All of the important terms of the offer

Question 3

Explain why standard phrases are used by lawyers to create legal documents.

Accepted Answer

Lawyers use standard phrases and clauses

Question 4

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate,assume that all other elements necessary to form a contract are present.

Accepted Answer

A) Since family matters are private matters,an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all other elements of a contract are present. 
B) The court will presume that there is always an intent to be legally bound in family situations. 
C) The court makes presumptions about the intention of parties to be bound; whether that presumption may be rebutted by evidence to the contrary makes no difference to the court. 
D) An intention to be legally bound is not a necessary element of a contract. 
E) Parties may expressly state their intention to be legally bound,in which case the court need not rely on presumptions. 
A) Since family matters are private matters,an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all other elements of a contract are present. 
B) The court will presume that there is always an intent to be legally bound in family situations. 
C) The court makes presumptions about the intention of parties to be bound; whether that presumption may be rebutted by evidence to the contrary makes no difference to the court. 
D) An intention to be legally bound is not a necessary element of a contract. 
E) Parties may expressly state their intention to be legally bound,in which case the court need not rely on presumptions.

Question 5

A person is required to honour a gratuitous promise if made under seal.

Accepted Answer

A) True 
 B)False

Question 6

For standard types of contracts (e.g.,insurance),lawyers are likely to use a standard form contract.

Accepted Answer

A) True 
 B)False

Question 7

Four days ago,Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer - $1000!" When he went to the store this afternoon and said he wanted one,the employees replied that they didn't have any left,nor could they get any.On these facts,which of the following is true?

Accepted Answer

A) Pete could sue for breach of an option contract. 
B) The offer by the store had lapsed before Pete tried to accept it. 
C) The wording in the newspaper was merely an invitation to the public to do business,and no contract was formed. 
D) The store had revoked the offer before Pete tried to accept it. 
E) Pete could sue the store for breach of contract because he was accepting the offer in the newspaper. 
A) Pete could sue for breach of an option contract. 
B) The offer by the store had lapsed before Pete tried to accept it. 
C) The wording in the newspaper was merely an invitation to the public to do business,and no contract was formed. 
D) The store had revoked the offer before Pete tried to accept it. 
E) Pete could sue the store for breach of contract because he was accepting the offer in the newspaper.

Question 8

In Canada,most provinces have either repealed or severely limited the application of their versions of the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 9

The courts never enforce an unfair bargain,even if there is a case of mental incapacity.

Accepted Answer

A) True 
 B)False

Question 10

Explain the legal position of an infant who enters into a contract with an adult.

Accepted Answer

This varies by province.In most province

Question 11

An ad in the morning paper reads: "Brand new 2012 Ford Escorts $16 499.No payment until January 2012.We make your first payment." This is an example of which of the following?

Accepted Answer

A) invitation to treat 
B) gratuitous promise 
C) offer 
D) unilateral contract 
E) bilateral contract 
A) invitation to treat 
B) gratuitous promise 
C) offer 
D) unilateral contract 
E) bilateral contract

Question 12

"Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.

Accepted Answer

This statement is not accurate.Verbal co

Question 13

Which of the following is correct with respect to the operation of the post-box rule?

Accepted Answer

A) If the post-box rule applies,the acceptance is effective at the point of mailing. 
B) For the post-box rule to apply,the offer must be made by mail. 
C) For the post-box rule to apply,the offeror must make that clear when the offer is made. 
D) If the post-box rule applies,the only way for an acceptance to be effective is to send it by mail. 
E) If the post-box rule applies,an acceptance must be communicated and heard by the offeree before it is effective. 
A) If the post-box rule applies,the acceptance is effective at the point of mailing. 
B) For the post-box rule to apply,the offer must be made by mail. 
C) For the post-box rule to apply,the offeror must make that clear when the offer is made. 
D) If the post-box rule applies,the only way for an acceptance to be effective is to send it by mail. 
E) If the post-box rule applies,an acceptance must be communicated and heard by the offeree before it is effective.

Question 14

Mrs.Johnson is thinking of selling some property to her son.Which of the following is correct with respect to intention when entering into such a contract?

Accepted Answer

A) In domestic agreements,there is a presumption that there is no intention to be legally bound. 
B) Commercial contracts are always binding,no matter what the stated intention. 
C) When intention is the issue,there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
D) Since domestic relationships are serious,there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
E) In commercial arrangements,there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
A) In domestic agreements,there is a presumption that there is no intention to be legally bound. 
B) Commercial contracts are always binding,no matter what the stated intention. 
C) When intention is the issue,there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
D) Since domestic relationships are serious,there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
E) In commercial arrangements,there is always an intention to be bound by agreements no matter what the parties state to the contrary.

Question 15

Manny agrees to provide pool-cleaning and lawn-care services to Janice in preparation for a party Janice is holding for family and friends.The agreement requires that Janice pay Manny $250.00 for three hours work.After completing approximately half the job,Manny requests that Janice pay him an extra $50.00 because the cost of gasoline used for the lawnmower had gone up that morning.Janice agrees to pay the additional $50.00.Is she legally liable to do so?

Accepted Answer

A) Yes,because she told Manny she would pay him and he finished the job on the basis of her promise. 
B) Yes,because the rising price of gas should be borne by Janice. 
C) No,because Manny had an existing contractual obligation to perform the services for $250.00 and there is no consideration for the subsequent agreement to pay $50.00 more. 
D) No,because Janice is promising to reward Manny for something he has previously done and past consideration is no consideration. 
E) Yes,because Manny relied on Janice's promise. 
A) Yes,because she told Manny she would pay him and he finished the job on the basis of her promise. 
B) Yes,because the rising price of gas should be borne by Janice. 
C) No,because Manny had an existing contractual obligation to perform the services for $250.00 and there is no consideration for the subsequent agreement to pay $50.00 more. 
D) No,because Janice is promising to reward Manny for something he has previously done and past consideration is no consideration. 
E) Yes,because Manny relied on Janice's promise.

Question 16

Once a person has promised to hold an offer open for a specified period of time,she cannot change her mind.

Accepted Answer

A) True 
 B)False

Question 17

With regard only to the requirement of consideration,which one of the following would be a binding contract?

Accepted Answer

A) an agreement between a contractor and a home owner that the home owner will pay an additional $1000 if the contractor completes the existing contract according to all its terms 
B) a promise by Tom to drive a co-worker to Timmins,Ontario 
C) a promise to give $10 exchanged for a promise to give a can of pop 
D) a written promise,but not under seal,to give John $50 on Saturday 
E) a promise by Mr.Brent to pay $25 to John,who found and returned Brent's wallet,which Brent didn't even know he had lost until John delivered it 
A) an agreement between a contractor and a home owner that the home owner will pay an additional $1000 if the contractor completes the existing contract according to all its terms 
B) a promise by Tom to drive a co-worker to Timmins,Ontario 
C) a promise to give $10 exchanged for a promise to give a can of pop 
D) a written promise,but not under seal,to give John $50 on Saturday 
E) a promise by Mr.Brent to pay $25 to John,who found and returned Brent's wallet,which Brent didn't even know he had lost until John delivered it

Question 18

Which of the following is true with regard to the offer and acceptance necessary to form a contract?

Accepted Answer

A) An ad in the newspaper that reads "Best offer in town! A new 2012 Honda Civic for only $15 999!" is considered an offer. 
B) If a seller offers to sell for $100 and the buyer makes a counter-offer of $90 that is rejected by the seller,the buyer can accept the original offer of $100 and bind the seller in contract. 
C) A purchased option that states "This offer to be open until noon tomorrow" prohibits the offeror from revoking the offer before that time. 
D) A person can accept an offer after it has lapsed. 
E) Where the acceptance is effective is not an important factor in determining the place of contract. 
A) An ad in the newspaper that reads "Best offer in town! A new 2012 Honda Civic for only $15 999!" is considered an offer. 
B) If a seller offers to sell for $100 and the buyer makes a counter-offer of $90 that is rejected by the seller,the buyer can accept the original offer of $100 and bind the seller in contract. 
C) A purchased option that states "This offer to be open until noon tomorrow" prohibits the offeror from revoking the offer before that time. 
D) A person can accept an offer after it has lapsed. 
E) Where the acceptance is effective is not an important factor in determining the place of contract.

Question 19

Discuss the Statute of Frauds as it relates to contract law.In your answer,consider the justification of requiring some contracts to be evidenced in writing,and changes related to the Statute of Frauds in several jurisdictions.

Accepted Answer

One of the mistakes made most often abou

Question 20

Explain the post-box rule and discuss its relevancy in the modern business world.

Accepted Answer

This question requires students to demon

Which of the following statements is correct with respect to the law of consideration?

What must be present in an offer before it qualifies as such?

Explain why standard phrases are used by lawyers to create legal documents.

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate,assume that all other elements necessary to form a contract are present.

A person is required to honour a gratuitous promise if made under seal.

For standard types of contracts (e.g.,insurance),lawyers are likely to use a standard form contract.

In Canada,most provinces have either repealed or severely limited the application of their versions of the Statute of Frauds.

The courts never enforce an unfair bargain,even if there is a case of mental incapacity.

Explain the legal position of an infant who enters into a contract with an adult.

An ad in the morning paper reads: "Brand new 2012 Ford Escorts $16 499.No payment until January 2012.We make your first payment." This is an example of which of the following?

"Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.

Which of the following is correct with respect to the operation of the post-box rule?

Mrs.Johnson is thinking of selling some property to her son.Which of the following is correct with respect to intention when entering into such a contract?

Once a person has promised to hold an offer open for a specified period of time,she cannot change her mind.

With regard only to the requirement of consideration,which one of the following would be a binding contract?

Which of the following is true with regard to the offer and acceptance necessary to form a contract?

Discuss the Statute of Frauds as it relates to contract law.In your answer,consider the justification of requiring some contracts to be evidenced in writing,and changes related to the Statute of Frauds in several jurisdictions.

Explain the post-box rule and discuss its relevancy in the modern business world.

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

Which of the following statements is correct with respect to the law of consideration?

What must be present in an offer before it qualifies as such?

Explain why standard phrases are used by lawyers to create legal documents.

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate,assume that all other elements necessary to form a contract are present.

A person is required to honour a gratuitous promise if made under seal.

For standard types of contracts (e.g.,insurance),lawyers are likely to use a standard form contract.

In Canada,most provinces have either repealed or severely limited the application of their versions of the Statute of Frauds.

The courts never enforce an unfair bargain,even if there is a case of mental incapacity.

Explain the legal position of an infant who enters into a contract with an adult.

An ad in the morning paper reads: "Brand new 2012 Ford Escorts $16 499.No payment until January 2012.We make your first payment." This is an example of which of the following?

"Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.

Which of the following is correct with respect to the operation of the post-box rule?

Mrs.Johnson is thinking of selling some property to her son.Which of the following is correct with respect to intention when entering into such a contract?

Once a person has promised to hold an offer open for a specified period of time,she cannot change her mind.

With regard only to the requirement of consideration,which one of the following would be a binding contract?

Which of the following is true with regard to the offer and acceptance necessary to form a contract?

Discuss the Statute of Frauds as it relates to contract law.In your answer,consider the justification of requiring some contracts to be evidenced in writing,and changes related to the Statute of Frauds in several jurisdictions.

Explain the post-box rule and discuss its relevancy in the modern business world.

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