Exam 3: Formation of Contracts

Ann was offered a job that would pay $20 000,that would provide for 18 days of vacation after one year of employment,and that would begin one week after her graduation.She wrote back that she would accept the job,but that she would not begin until three weeks after graduation and needed at least 21 days of vacation after the first year of work.On these facts,which of the following is true?

Sam had been a friend of Joe for a considerable period of time and had often accompanied him as he sailed his classic yacht.Sam had often communicated to Joe how much he would like to have the boat.On Friday night,a friend told Sam that Joe had suffered some business reverses and was going to have to get rid of the yacht.Sam immediately wrote Joe a letter offering to purchase the yacht for $25 000.Unknown to Sam,Joe had written Sam a similar letter offering to sell the yacht for $25 000.These two letters passed in the mail.Joe received Sam's letter at about noon on Saturday,and Sam received Joe's letter at about 2:30 p.m.on Saturday.Are these people bound in contract? Explain.

Which of the following is correct with respect to the law of intention?

Mr.Goode,a neighbour of your parents,offered to sell you his house for $200 000,a bit below market value.You are definitely interested but would like to see if your employment contract will be renewed and check on financing.Mr.Goode says that he'll hold the offer open for you until May 1.On these facts,which of the following is true?

In his last year of high school,Larry,a minor,saw a friend's computer and felt that the word processing function would help him get through high school.He visited Computer Heaven Ltd.and contracted for an Apple Macintosh,printer,paper,and the program.The total cost was $4000.He paid $1800 as a down payment and promised to pay another $300 on July 3,his birthday; the remainder would be paid in monthly installments of $100.Larry made the July 3 payment and some of the monthly payments,but by then had graduated,thanks to his passing mark in English,and didn't have a use for the computer anymore.Furthermore,he wanted to save his money for a down payment on a compact disc player and speakers.When he stopped making payments to Computer Heaven,the balance outstanding was $1700.On these facts,which of the following is true?

What is the age of majority in your province?

Ted,a 17-year-old high school student,was hired to perform in four episodes of a TV series filmed in Vancouver.To keep up with his schoolwork,he contracted with Mr.Tech,of Technoland,for a $3000 laptop computer.He agreed to pay $500 as a down payment and the balance in monthly payments of $250.Read each of the following separately and indicate which is true.

Contracts that unduly restrict competition are void.

A provision in a contract for the sale and purchase of a business reads as follows: "The vendor (Jones)shall not,directly or indirectly,in any capacity whatsoever,carry on a similar business in any location for one year." Six months later,Kates (the buyer)found that Jones was competing directly by opening up a similar business,contrary to the contract drafted by Kates.Kates sued Jones for breach of contract,namely,breach of the restrictive covenant.Which of the following best describes the legal position of the parties?

Smith runs a software-design business.He needed someone to handle some product demonstrations,so he hired Janet to do this work.In the employment contract,Smith insisted that Janet promise that,if she left the firm,she would not work for Smith's competitors within a stated period of time and within a stated geographical region.If Janet now wishes to leave the job,indicate the statement that accurately describes the likely effect of her promise.

Only contracts that involve the commission of a crime or tort are void on the basis of illegality.

Requirements of a contract include capacity of the parties to contract,legality,and intention of the parties to be legally bound.Which of the following is true with regard to these elements?

Jones is a caterer; Smith is 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 asked 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 Smith's 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 January 13 was received on January 18.Smith had received the letter of January 10 on January 15 and had sent his 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.Which of the following is true?

A promise that is made to do something for someone else expecting nothing in return is a:

Contracts to commit a crime or a tort are void.

The City issued a request for bids for the construction of an events centre; the terms stated that the closing would be June 30 at 4:00 p.m.of the current year.At 4:15 p.m.on June 30,a representative of Joe's Construction arrived at the City offices to submit a bid.There was discussion about the fact that the stated deadline had passed,but the person from Joe's Construction said that the submission was being made on June 30 while the City offices were still open,and the only reason there had been a delay was a problem locating the company managers who needed to sign the bid.Which of the following statements is true?

Indicate which one of the following is the correct statement about the effect of promissory estoppel on a promisor.

Which of the following is not an example of a contract?

Discuss the requirement of consideration and its role and value in the formation of contracts.In your answer,make sure to deal with the issue of fairness in the bargaining process.

The post-box rule applies when which of the following means of communication is used?