Question 1

Explain what is meant by a tendering process and discuss the tender agreement.

Accepted Answer

When a company wants to undertake a proj

Question 2

Which one of the following contracts is an example of an illegal contract,not binding on the parties?

Accepted Answer

A) a contract between camera dealers and distributors whereby they agree to sell a specific model of camera 
B) a contract whereby one person agrees to perform services for another,but payment will be made at the end of the contract 
C) a contract whereby one person agrees to buy a car from another person 
D) a contract whereby one person agrees to sell a desk to another 
E) the act of paying for sexual favours (prostitution) 
A) a contract between camera dealers and distributors whereby they agree to sell a specific model of camera 
B) a contract whereby one person agrees to perform services for another,but payment will be made at the end of the contract 
C) a contract whereby one person agrees to buy a car from another person 
D) a contract whereby one person agrees to sell a desk to another 
E) the act of paying for sexual favours (prostitution)

Question 3

Roberts has the chance to buy three adjacent city lots zoned as "duplex." The most profitable return would be the building of four townhouses across the three lots,but that would necessitate getting permission from the city,and that procedure takes time.If Roberts buys a 60-day option from the seller of the properties for $400,which of the following is true?

Accepted Answer

A) By buying the option,Roberts has bought a period of time during which she must accept the land offer. 
B) If Roberts does not exercise the option during the option period,she can later force the seller to sell that property to her at that price. 
C) If Roberts does not exercise the option,she will get her $400 back because she didn't get what she was bargaining for. 
D) The seller is bound by contract neither to sell the property to any other party nor to revoke the offer within the option period. 
E) The offer for the properties will expire before the end of the designated 60-day period if another person offers a higher price. 
A) By buying the option,Roberts has bought a period of time during which she must accept the land offer. 
B) If Roberts does not exercise the option during the option period,she can later force the seller to sell that property to her at that price. 
C) If Roberts does not exercise the option,she will get her $400 back because she didn't get what she was bargaining for. 
D) The seller is bound by contract neither to sell the property to any other party nor to revoke the offer within the option period. 
E) The offer for the properties will expire before the end of the designated 60-day period if another person offers a higher price.

Question 4

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?

Accepted Answer

A) Family members can never have the intent to be legally bound in their agreements because family matters are private matters. 
B) The court always presumes an intention to be legally bound,so this is never an issue in a contract case. 
C) The court can presume the intention to be legally bound,but a party to the contract can bring forward contrary evidence to rebut that presumption. 
D) If the parties fail to state expressly in their contract their intention to be legally bound,there is no contract. 
E) In contract cases,the court hears evidence as to what the parties actually had in their minds at the time of contract. 
A) Family members can never have the intent to be legally bound in their agreements because family matters are private matters. 
B) The court always presumes an intention to be legally bound,so this is never an issue in a contract case. 
C) The court can presume the intention to be legally bound,but a party to the contract can bring forward contrary evidence to rebut that presumption. 
D) If the parties fail to state expressly in their contract their intention to be legally bound,there is no contract. 
E) In contract cases,the court hears evidence as to what the parties actually had in their minds at the time of contract.

Question 5

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his or her incapacity.

Accepted Answer

A) True 
 B)False

Question 6

Joe made an offer to sell his car to Harry,promising to keep the offer open for a week.However,he changed his mind,sold the car to someone else,and phoned Harry to inform him that he was withdrawing the offer because he had sold the car to someone else.Harry was angry and said that he wanted the car and was going to hold Joe to his promise to hold the offer open for a week.He sued for breach of contract.Will he win? Explain.

Accepted Answer

No,he won't.The offer was effe

Question 7

Why is an understanding of contract law important for a business person?

Accepted Answer

Most commercial tran

Question 8

All commercial contracts must be evidenced by writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true with regard to contract law?

Accepted Answer

A) An exchange of promises is not adequate consideration to form a contract. 
B) A contract for a $50 000 boat must be evidenced in writing to be a valid contract. 
C) To form a contract,there must be an offer that is accepted unconditionally. 
D) The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate (i.e.,fair). 
E) A contract is void if it is required to be evidenced in writing under the Statute of Frauds,and is not. 
A) An exchange of promises is not adequate consideration to form a contract. 
B) A contract for a $50 000 boat must be evidenced in writing to be a valid contract. 
C) To form a contract,there must be an offer that is accepted unconditionally. 
D) The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate (i.e.,fair). 
E) A contract is void if it is required to be evidenced in writing under the Statute of Frauds,and is not.

Question 10

XYZ Company,a distributor of auto parts,is in debt to the bank for $35 000 due on February 25.The company is having difficult times and wants to negotiate with the bank to pay only $33 000 as payment in full.With these facts in mind,which of the following statements of the law is true?

Accepted Answer

A) If the bank agrees to accept the $33 000 as payment in full if paid early,by February 15,and the company does as requested,the bank could later sue for the remainder because the company gave good consideration for the bank's forgiveness of the debt. 
B) Even if the bank takes the $33 000,the bank can still sue for the entire amount plus punitive damages. 
C) If the company obtained from the bank the bank's promise to forgive the $2000 under seal,the bank could later sue for the remainder. 
D) A statutory provision provides that the creditor who accepts less than full payment as payment in full cannot later sue for the remainder. 
E) At common law,if the bank accepted the $33 000 as payment in full,even absent additional consideration,it could not later sue for the remainder because such promises are always binding. 
A) If the bank agrees to accept the $33 000 as payment in full if paid early,by February 15,and the company does as requested,the bank could later sue for the remainder because the company gave good consideration for the bank's forgiveness of the debt. 
B) Even if the bank takes the $33 000,the bank can still sue for the entire amount plus punitive damages. 
C) If the company obtained from the bank the bank's promise to forgive the $2000 under seal,the bank could later sue for the remainder. 
D) A statutory provision provides that the creditor who accepts less than full payment as payment in full cannot later sue for the remainder. 
E) At common law,if the bank accepted the $33 000 as payment in full,even absent additional consideration,it could not later sue for the remainder because such promises are always binding.

Question 11

The owner of a new building wanted four maple trees,each six metres tall,planted on the north side of the building.Lloyd Landscaper submitted his offer of four six-metre maples planted for $800.The owner said he would pay $600 for that.Lloyd said that for $600 he would supply four smaller,five-metre trees.The owner said,"$600 for five-metre trees plus a Christmas tree for my kids." Lloyd was disgusted and said,"Forget it.I don't need this job." As he was leaving,the owner said,"All right,I'll accept your offer of $600 for the five-metre maples planted." Lloyd kept on walking.Which of the following is true?

Accepted Answer

A) There is no contract because Lloyd's last offer had been rejected by a counter-offer. 
B) There is no contract because Lloyd's last offer was revoked. 
C) There is no contract because there is a presumption in law in these circumstances that the parties did not intend to create a legal relationship. 
D) There is no contract because Lloyd's last offer had lapsed after a reasonable time. 
E) There is a contract because at one point in the conversation Lloyd was willing to sell and the owner was willing to buy four trees. 
A) There is no contract because Lloyd's last offer had been rejected by a counter-offer. 
B) There is no contract because Lloyd's last offer was revoked. 
C) There is no contract because there is a presumption in law in these circumstances that the parties did not intend to create a legal relationship. 
D) There is no contract because Lloyd's last offer had lapsed after a reasonable time. 
E) There is a contract because at one point in the conversation Lloyd was willing to sell and the owner was willing to buy four trees.

Question 12

"A verbal contract is every bit as binding as a written one." Discuss the validity of this statement.

Accepted Answer

The Statute of Frauds requires

Question 13

If an offeror makes an offer that states "This offer to be open until noon tomorrow," which of the following ends the offer?

Accepted Answer

A) an inquiry by the offeree 
B) the insanity of the offeree 
C) revocation of the offer by the offeror before the time specified (i.e.,before "noon tomorrow") 
D) a counter-offer by the offeror 
E) the selling of the item to someone else before noon tomorrow 
A) an inquiry by the offeree 
B) the insanity of the offeree 
C) revocation of the offer by the offeror before the time specified (i.e.,before "noon tomorrow") 
D) a counter-offer by the offeror 
E) the selling of the item to someone else before noon tomorrow

Question 14

Which of the following is true with regard to contract law?

Accepted Answer

A) An option is a contract in which one person is buying a period of time within which he may accept the offer contained within the option. 
B) A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat. 
C) A revocation is effective only when sent. 
D) An important criterion for determining the place of the contract is the place where the offer is mailed. 
E) A counter-offer does not end an offer. 
A) An option is a contract in which one person is buying a period of time within which he may accept the offer contained within the option. 
B) A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat. 
C) A revocation is effective only when sent. 
D) An important criterion for determining the place of the contract is the place where the offer is mailed. 
E) A counter-offer does not end an offer.

Question 15

Joe was in a bar and saw his friend Sam.Sam had a considerable amount to drink and then offered to sell Joe his Porsche automobile for only $15 000.Joe made sure to have Sam sign a written agreement to that effect.The next day,Joe went to pick up the car,but Sam didn't remember anything about it.Even when Joe showed Sam the written agreement signed by him,Sam refused to deliver the car.Joe sued.Which of the following correctly states the legal position of the parties?

Accepted Answer

A) Sam has to show he was legally intoxicated and he will not be bound. 
B) As long as Joe can produce the agreement in writing,there is nothing Sam can do to get out of the deal.Once Sam has signed the document,he is responsible for its contents. 
C) If Joe can show that there was no indication that Sam was drunk,even though Sam was completely incapacitated,Sam will be required to go through with the deal. 
D) Sam will not have to go through with the deal because no money has yet changed hands. 
E) Being drunk is no excuse; the contract is binding. 
A) Sam has to show he was legally intoxicated and he will not be bound. 
B) As long as Joe can produce the agreement in writing,there is nothing Sam can do to get out of the deal.Once Sam has signed the document,he is responsible for its contents. 
C) If Joe can show that there was no indication that Sam was drunk,even though Sam was completely incapacitated,Sam will be required to go through with the deal. 
D) Sam will not have to go through with the deal because no money has yet changed hands. 
E) Being drunk is no excuse; the contract is binding.

Question 16

A letter of revocation takes effect when received by the offeree.

Accepted Answer

A) True 
 B)False

Question 17

One afternoon while Mr.Reston was going home on the bus,his neighbour,Mr.Outovit,offered to sell Reston his car for $4000,a bit below the market value.Reston said,"You might change your mind on that.Better not be too hasty with your offers." Outovit answered,"I want to sell it quickly," and wrote on the back of an envelope: "I hereby offer my neighbour,Reston,my 2011 Chevrolet for $4000 in cash." Outovit then signed his name.Reston wrote,"I accept." The next day,Reston went to his neighbour's house to pay the money and get the car.He learned that Outovit was in the hospital suffering from a reaction to medicines given to him the day before.If Outovit (or his legal representative)refuses to honour the contract on the basis of mental incapacity,which of the following is true?

Accepted Answer

A) If it is established that Reston didn't know Outovit was incapacitated at the time of contract and that the deal was fair,Outovit will be bound by the contract even if he didn't understand the nature and quality of his act. 
B) If Reston can show the written contract,Outovit has no argument and will be bound to honour the contract. 
C) Outovit need only prove that he didn't understand the nature and quality of his act to void the contract. 
D) Outovit won't be bound by the contract because there hadn't yet been payment for,or delivery of,the car. 
E) To get out of a contract on the basis of insanity,you have to be institutionalized. 
A) If it is established that Reston didn't know Outovit was incapacitated at the time of contract and that the deal was fair,Outovit will be bound by the contract even if he didn't understand the nature and quality of his act. 
B) If Reston can show the written contract,Outovit has no argument and will be bound to honour the contract. 
C) Outovit need only prove that he didn't understand the nature and quality of his act to void the contract. 
D) Outovit won't be bound by the contract because there hadn't yet been payment for,or delivery of,the car. 
E) To get out of a contract on the basis of insanity,you have to be institutionalized.

Question 18

Mr.Adams telling the local Boys and Girls Club that he will give them $5000 if they promise to use the funds for their summer camping program is an example of which one of the following?

Accepted Answer

A) promissory estoppel 
B) when accepted by the club,a bilateral contract 
C) when accepted by the club,a unilateral contract 
D) gratuitous promise 
E) inadequate consideration 
A) promissory estoppel 
B) when accepted by the club,a bilateral contract 
C) when accepted by the club,a unilateral contract 
D) gratuitous promise 
E) inadequate consideration

Question 19

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

Accepted Answer

A) Because of modern advances in communication,the post-box rule no longer applies. 
B) The post-box rule applies to emails as well as to the mail. 
C) The post-box rule applies only when response by mail is appropriate. 
D) The post-box rule applies to communications via fax,postal service,and telegrams. 
E) When acceptance is mailed,it is effective when and where it is received. 
A) Because of modern advances in communication,the post-box rule no longer applies. 
B) The post-box rule applies to emails as well as to the mail. 
C) The post-box rule applies only when response by mail is appropriate. 
D) The post-box rule applies to communications via fax,postal service,and telegrams. 
E) When acceptance is mailed,it is effective when and where it is received.

Question 20

Mary received a non-solicited selection of compact discs in the mail,with a letter informing her that she was now a member of the CD of the Month Club.It also said that if she didn't want these CDs,she could simply send them back; otherwise,she would be billed $10 for each CD at the end of the month.She put the CDs away,and did not respond.The club continued to send her CDs each month until she had received 100 of them over a period of 10 months.The club then sent her a letter demanding payment; otherwise,it would take legal action.Explain Mary's legal obligation in these circumstances.

Accepted Answer

There is no contract under these circums

Explain what is meant by a tendering process and discuss the tender agreement.

Which one of the following contracts is an example of an illegal contract,not binding on the parties?

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his or her incapacity.

Why is an understanding of contract law important for a business person?

All commercial contracts must be evidenced by writing to be enforceable.

Which of the following is true with regard to contract law?

XYZ Company,a distributor of auto parts,is in debt to the bank for $35 000 due on February 25.The company is having difficult times and wants to negotiate with the bank to pay only $33 000 as payment in full.With these facts in mind,which of the following statements of the law is true?

"A verbal contract is every bit as binding as a written one." Discuss the validity of this statement.

If an offeror makes an offer that states "This offer to be open until noon tomorrow," which of the following ends the offer?

Which of the following is true with regard to contract law?

A letter of revocation takes effect when received by the offeree.

Mr.Adams telling the local Boys and Girls Club that he will give them $5000 if they promise to use the funds for their summer camping program is an example of which one of the following?

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

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

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Exam 3: Formation of Contracts

Explain what is meant by a tendering process and discuss the tender agreement.

Which one of the following contracts is an example of an illegal contract,not binding on the parties?

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his or her incapacity.

Why is an understanding of contract law important for a business person?

All commercial contracts must be evidenced by writing to be enforceable.

Which of the following is true with regard to contract law?

XYZ Company,a distributor of auto parts,is in debt to the bank for $35 000 due on February 25.The company is having difficult times and wants to negotiate with the bank to pay only $33 000 as payment in full.With these facts in mind,which of the following statements of the law is true?

"A verbal contract is every bit as binding as a written one." Discuss the validity of this statement.

If an offeror makes an offer that states "This offer to be open until noon tomorrow," which of the following ends the offer?

Which of the following is true with regard to contract law?

A letter of revocation takes effect when received by the offeree.

Mr.Adams telling the local Boys and Girls Club that he will give them $5000 if they promise to use the funds for their summer camping program is an example of which one of the following?

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

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