Question 1

You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is false?

Accepted Answer

A)  If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding. 
B)  If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100. 
C)  If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100. 
D)  If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900. 
E)  If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100. 
A)  If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding. 
B)  If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100. 
C)  If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100. 
D)  If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900. 
E)  If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100.

Question 2

Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Accepted Answer

Under the common law, a gratuitous debt

Question 3

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

Accepted Answer

A)  Promissory estoppel means that Donna cannot revoke her offer where she has promised to hold it open for a specific period of time. 
B)  Where Able requests services from Cain, the doctrine of promissory estoppel requires a reasonable price to be paid even where no specific amount was agreed. 
C)  Where Barbra relies on Raylene's promise and suffers a loss, Barbra can sue Raylene for compensation even though the promise is gratuitous. 
D)  Where Hank and Jim have a contract and Hank releases Jim from part of Jim's obligation, Jim can use that release, even though it was given without consideration, as a defence if Hank sues for breach of contract. 
E)  Promissory estoppel refers to the principle that, where a document is in writing and under seal, it is enforceable even where there is no consideration. 
A)  Promissory estoppel means that Donna cannot revoke her offer where she has promised to hold it open for a specific period of time. 
B)  Where Able requests services from Cain, the doctrine of promissory estoppel requires a reasonable price to be paid even where no specific amount was agreed. 
C)  Where Barbra relies on Raylene's promise and suffers a loss, Barbra can sue Raylene for compensation even though the promise is gratuitous. 
D)  Where Hank and Jim have a contract and Hank releases Jim from part of Jim's obligation, Jim can use that release, even though it was given without consideration, as a defence if Hank sues for breach of contract. 
E)  Promissory estoppel refers to the principle that, where a document is in writing and under seal, it is enforceable even where there is no consideration.

Question 4

There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense, the promisor may be liable for failing to live up to that promise. What is this principle known as?

Accepted Answer

The answer of There is a principle that says when...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 his 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 him 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 ef

Question 8

The postbox rule applies when which of the following means of communication is used?

Accepted Answer

A)  Messenger 
B)  Telephone 
C)  Mail 
D)  Fax 
E)  Electronic mail 
A)  Messenger 
B)  Telephone 
C)  Mail 
D)  Fax 
E)  Electronic mail

Question 9

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

Accepted Answer

A)  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. 
B)  Without consideration or a seal, there can be no contract. 
C)  The amount of consideration to be paid in a contract must be reasonable (that is, fair) from the point of view of each party. 
D)  Consideration must have some value but need not be specific. 
E)  Consideration need not be specific, just so both parties got something out of the deal. 
A)  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. 
B)  Without consideration or a seal, there can be no contract. 
C)  The amount of consideration to be paid in a contract must be reasonable (that is, fair) from the point of view of each party. 
D)  Consideration must have some value but need not be specific. 
E)  Consideration need not be specific, just so both parties got something out of the deal.

Question 10

In Gilbert Steel Ltd. v. University Construction Ltd., what did the Court find on the issue of consideration?

Accepted Answer

A)  Because the Court will not look into the adequacy of consideration, a one-sided agreement is enforceable. 
B)  A one-sided agreement is, in law, a form of unilateral contract. 
C)  Because commercial parties dealing at arms' length were involved, a one-sided agreement is valid. 
D)  A one-sided agreement is not enforceable. 
E)  A one-sided agreement is only binding if its essential terms are reduced to writing. 
A)  Because the Court will not look into the adequacy of consideration, a one-sided agreement is enforceable. 
B)  A one-sided agreement is, in law, a form of unilateral contract. 
C)  Because commercial parties dealing at arms' length were involved, a one-sided agreement is valid. 
D)  A one-sided agreement is not enforceable. 
E)  A one-sided agreement is only binding if its essential terms are reduced to writing.

Question 11

What are the ways in which an offer can come to an end prior to acceptance?

Accepted Answer

(1) End of a specified time, (

Question 12

Which of the following could not be used as consideration?

Accepted Answer

A)  50 cents 
B)  A promise to deliver three tons of steel 
C)  A promise to give up a legal right 
D)  A kilogram of green beans 
E)  Work that was done in the past 
A)  50 cents 
B)  A promise to deliver three tons of steel 
C)  A promise to give up a legal right 
D)  A kilogram of green beans 
E)  Work that was done in the past

Question 13

If the mail is a reasonable means for accepting an offer, is there 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.

Accepted Answer

The revocation is effective on

Question 14

Indicate how consumers are protected in standard form contract situations.

Accepted Answer

These contractual terms are strictly int

Question 15

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

Accepted Answer

A)  C returns a lost dog and claims the $50 reward. 
B)  Joe promises to give Harry his old boat when he gets his new one. 
C)  Joe pays $50 for groceries at a grocery store. 
D)  Joe agrees to paint Sam's house for $500. 
E)  Sam orders a meal in a restaurant. 
A)  C returns a lost dog and claims the $50 reward. 
B)  Joe promises to give Harry his old boat when he gets his new one. 
C)  Joe pays $50 for groceries at a grocery store. 
D)  Joe agrees to paint Sam's house for $500. 
E)  Sam orders a meal in a restaurant.

Question 16

As property manager of a 15-unit apartment block, you receive rent payments on the first of every month from each tenant. Mrs. Lone, in apartment 105, whose rent is $500 per month, lost her job and was in dire financial difficulties. You agreed to take only $400 per month. For the last ten months, she has paid only $400 a month, but you have learned that for 4 months she has had a new and even better-paying job. You are angry that she failed to tell you this and you want to sue her for the entire amount of back rent ($1,000). Which of the following arguments could she use most effectively against you?

Accepted Answer

A)  Breach of contract 
B)  Undue influence 
C)  Duress 
D)  Promissory estoppel 
E)  Mistake 
A)  Breach of contract 
B)  Undue influence 
C)  Duress 
D)  Promissory estoppel 
E)  Mistake

Question 17

Joe, a university student, parked his car near Harry's garage and went away to attend classes. Harry had noticed that there was glass on the street when he came to work that morning and was not surprised when he saw that several of the students' cars parked in that location subsequently had flat tires. He went around when he had time during the day, to each of those cars, fixed the tires and put a bill on each vehicle charging $15 for the service. Joe had come back during the day and noticed his flat tire, and when he came back that evening was grateful that it had been fixed. He went over to the garage to thank Harry and told him that he would be happy to pay the $15, but he couldn't do it until next week. In fact, he failed to pay the money, and Harry sued him for breach of contract. Explain the likely outcome.

Accepted Answer

Harry would lose. This is an e

Question 18

In Lanca Contracting Ltd. v. Brant (County) Board of Education, what was the issue facing the Court and what did the Court decide?

Accepted Answer

A)  The Court had to decide whether an offer could be accepted by someone to whom it had not been conveyed, and the Court decided it could be, but only if the acceptance were communicated in writing. 
B)  The Court had to decide whether an offer could be accepted by someone to whom it had not been conveyed, and the Court decided it could be. 
C)  The Court had to decide whether a bid could result in a binding contract, and the Court decided it could not be. 
D)  The Court had to decide whether notice of the acceptance was sufficient to create a binding contract, and the Court decided it had been. 
E)  The Court had to decide whether notice of the acceptance was sufficient to create a binding contract, and the Court decided that only actual notice could ever suffice. 
A)  The Court had to decide whether an offer could be accepted by someone to whom it had not been conveyed, and the Court decided it could be, but only if the acceptance were communicated in writing. 
B)  The Court had to decide whether an offer could be accepted by someone to whom it had not been conveyed, and the Court decided it could be. 
C)  The Court had to decide whether a bid could result in a binding contract, and the Court decided it could not be. 
D)  The Court had to decide whether notice of the acceptance was sufficient to create a binding contract, and the Court decided it had been. 
E)  The Court had to decide whether notice of the acceptance was sufficient to create a binding contract, and the Court decided that only actual notice could ever suffice.

Question 19

A binding contract that will subsequently be put into a more formal document is known as ________.

Accepted Answer

An interim

Question 20

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

Accepted Answer

A)  A revocation is effective only when received. 
B)  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. 
C)  A counter-offer ends an offer. 
D)  An important criterion for determining the place of the contract is the place where the acceptance is effective. 
E)  A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat. 
A)  A revocation is effective only when received. 
B)  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. 
C)  A counter-offer ends an offer. 
D)  An important criterion for determining the place of the contract is the place where the acceptance is effective. 
E)  A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat.

You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is false?

Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense, the promisor may be liable for failing to live up to that promise. What is this principle known as?

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

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

The postbox rule applies when which of the following means of communication is used?

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

In Gilbert Steel Ltd. v. University Construction Ltd., what did the Court find on the issue of consideration?

What are the ways in which an offer can come to an end prior to acceptance?

Which of the following could not be used as consideration?

If the mail is a reasonable means for accepting an offer, is there 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.

Indicate how consumers are protected in standard form contract situations.

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

In Lanca Contracting Ltd. v. Brant (County) Board of Education, what was the issue facing the Court and what did the Court decide?

A binding contract that will subsequently be put into a more formal document is known as ________.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 6: Formation of Contracts

You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is false?

Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense, the promisor may be liable for failing to live up to that promise. What is this principle known as?

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

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

The postbox rule applies when which of the following means of communication is used?

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

In Gilbert Steel Ltd. v. University Construction Ltd., what did the Court find on the issue of consideration?

What are the ways in which an offer can come to an end prior to acceptance?

Which of the following could not be used as consideration?

If the mail is a reasonable means for accepting an offer, is there 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.

Indicate how consumers are protected in standard form contract situations.

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

In Lanca Contracting Ltd. v. Brant (County) Board of Education, what was the issue facing the Court and what did the Court decide?

A binding contract that will subsequently be put into a more formal document is known as ________.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters