Exam 3: Formation of Contracts

If the mail is a reasonable means for accepting an offer,is a contract formed when the offeror drops a letter of revocation in the mailbox at the very same instant that the offeree drops a letter of acceptance in the mailbox? Explain.

Jon was developing a computer program for use by owners of track clubs to aid them in keeping records of the members,their runs,times,injuries,etc.Eager to finish the program,Jon,in Edmonton,called his friend Sam,in Calgary,and offered him $2000 to help: five hours per working day,five days per week,for five weeks.Sam said that he would have to think about it.Jon told Sam that he was eager to get going,but that he would hold the offer open until Friday,February 6,at noon.Which of the following is true? (Read each separately.)

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of this statement.

If a person says that he had not intended to be bound by an agreement when he entered it,there can be no contract.

Jed,who lives on Cape Breton Island,needed money for a trip to France.He decided to sell his electric guitar.On Monday,October 29,he called the owner of a music store in Halifax and offered to sell his Fender Stratocaster guitar for $400,the offer to be open until Friday at noon,November 2.Jed told the store owner to send a letter of acceptance since Jed would be away for a few days.The store owner examined his inventory and mailed a letter of acceptance on Thursday,November 1.When Jed returned home on Saturday,November 3,the letter had not yet arrived,so that afternoon he sold the guitar to a music teacher in his town.The store owner in Halifax sued for breach of contract.Which of the following is true?

"A person's intention to be bound by contracts is presumed." Discuss the accuracy of this statement.

Which of the following is an example of a unilateral contract?

A company put a job out to tender.The tendering process requires the company to follow certain rules typically associated with this process.Which of the following is most likely not a requirement in a tendering process?

In which of the following situations would one of the parties not be bound on the basis of incapacity?

Joe drove his car to a shopping mall and parked it there to attend a movie.The place where he parked was designated as a one-hour parking space on a sign at the entrance where Joe drove in.There were many similar signs around the shopping mall stating that people were parking their cars at their own risk.But this particular sign said that the time limit for parking there was one hour,and as a term of the contract anyone parking over this one-hour limit would have to pay a fee of $60.When Joe got out of the movie,he found a ticket on his car (a demand for payment of the $60).He refused to pay and was sued.What would be Joe's defence in these circumstances?

Joe owed Sam $500.Two days before the money was due,Joe came to Sam and told him he couldn't pay the $500,but if Sam would accept $300 right then,in full satisfaction of the debt,he would pay him that amount.Sam agreed,then later sued for the other $200.Will he win?

If a contract is not evidenced in writing (but is required by law to be in writing),this does not make it void,only unenforceable.

Joe offered to sell Harry his car for $500.Harry responded by saying,"I accept,provided you install a new radio in that car." Explain the legal relationship between the two parties.

Assume that all other requirements for a valid contract are present and indicate which of the following would be a binding agreement.

Whenever an adult enters into a contract with a minor,the adult is bound.

An invitation to treat is an offer published in the newspaper.

In the Pharmaceutical Society case,it was decided that goods displayed on the shelf in a self-service merchandising situation were an invitation to treat,rather than an offer.Discuss.

Which one of the following will not end an offer?

Joe sold Harry his barbershop,but Harry wanted a commitment on Joe's part that he would not open another barbershop in the area after he received payment.Explain how the parties could include a clause in their agreement,to that end,without it being void as a restraint of trade.

Sylvia had contracted with Produce Palace to sell it her entire crop of elephant garlic (100 kilograms)and her entire crop of tomatoes (100 kilograms).On the day for delivery,Produce Palace took the garlic but not the tomatoes.In an effort to mitigate her loss,Sylvia called the owner of Val's Veggies and offered her the tomatoes at a reduced price with the words,"Let me know quickly; they are ripe and must be moved out today." That afternoon,Val sent Sylvia a letter accepting the offer.On these facts,which is the most likely outcome?