Question 1

A one-sided promise the courts will not enforce is known as ________.

Accepted Answer

A gratuito

Question 2

Anmool verbally agreed to build a deck for Nikki for $1,000 by the 15th of September, in time for a lavish backyard barbecue she was planning. On September 13th, Nikki became concerned at Anmool's lack of progress. Anmool told Nikki he would complete the deck on time, for an additional $200. Nikki agreed and Anmool completed the deck on time. Which of the following is correct?

Accepted Answer

A)  Nikki owes Anmool $1,000; there is no binding obligation with respect to the additional $200 because Anmool had an existing duty to complete the deck on time. 
B)  Nikki owes Anmool $1,200, because that is what she agreed to, and such contracts are binding. 
C)  Nikki does not owe Anmool anything, because his lack of professionalism vitiated the contract. 
D)  Problems of consideration can be raised only in the commercial context, not when the parties involved are both individuals. 
E)  No legal obligations arise because the agreement is not in writing. 
A)  Nikki owes Anmool $1,000; there is no binding obligation with respect to the additional $200 because Anmool had an existing duty to complete the deck on time. 
B)  Nikki owes Anmool $1,200, because that is what she agreed to, and such contracts are binding. 
C)  Nikki does not owe Anmool anything, because his lack of professionalism vitiated the contract. 
D)  Problems of consideration can be raised only in the commercial context, not when the parties involved are both individuals. 
E)  No legal obligations arise because the agreement is not in writing.

Question 3

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

Accepted Answer

A) True 
 B)False

Question 4

When you pay for an option, this prevents a person from revoking his offer before the expiration of the specified time.

Accepted Answer

A) True 
 B)False

Question 5

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary. We'll give you an IBM-compatible PC with a Roland PR-1011 printer for only $4 000!!! Pick it up today." This is an example of which of the following?

Accepted Answer

A)  Offer 
B)  Invitation to treat 
C)  Unilateral contract 
D)  Bilateral contract 
E)  Gratuitous promise 
A)  Offer 
B)  Invitation to treat 
C)  Unilateral contract 
D)  Bilateral contract 
E)  Gratuitous promise

Question 6

Harry saw Joe in his classic Buick at a local drive-in restaurant and talked about wanting to buy it. Joe offered to sell it to him for $1,500. Harry said he needed some time to think about it and that he would send him a letter. The next day, Joe changed his mind and mailed Harry a letter of revocation. The day after that, before Harry had received the letter of revocation, he sent a letter of acceptance to Joe. The next day the two letters arrived at their various destinations, Joe receiving Harry's letter of acceptance just after Harry received Joe's letter of revocation. Explain the legal liabilities of the parties.

Accepted Answer

There is a legally binding contract here

Question 7

In the Pharmaceutical 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.

Accepted Answer

This question gives students the opportu

Question 8

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 to check about financing. Mr. Goode says that he'll hold the offer open for you until May 1, 2011. On these facts, which of the following is false?

Accepted Answer

A)  Mr. Goode will be bound to hold it open if you offer and he accepts your offer to wash his car every Saturday morning for two months in exchange for his promise to hold it open. 
B)  Mr. Goode's promise to hold it open is sufficient; the offer is safe until May 1, 2011, when it will expire. 
C)  Mr. Goode will be bound to hold it open if you pay him and he accepts some money to hold it open until that date. 
D)  If you buy an option to buy a house, you still don't have to buy the house. 
E)  Mr. Goode will be bound to hold it open until that date if his promise to do so was written and under seal. 
A)  Mr. Goode will be bound to hold it open if you offer and he accepts your offer to wash his car every Saturday morning for two months in exchange for his promise to hold it open. 
B)  Mr. Goode's promise to hold it open is sufficient; the offer is safe until May 1, 2011, when it will expire. 
C)  Mr. Goode will be bound to hold it open if you pay him and he accepts some money to hold it open until that date. 
D)  If you buy an option to buy a house, you still don't have to buy the house. 
E)  Mr. Goode will be bound to hold it open until that date if his promise to do so was written and under seal.

Question 9

Joe offered to sell Harry his car and agreed to hold the offer open for one week, expiring Saturday at noon. The following Sunday, Harry phoned Joe to tell him that he decided to accept his offer and purchase his car. Joe said at that time that he had decided to keep the car and was just about to phone Harry to revoke the offer. Harry said, "Too bad," and demanded performance of the contract. Explain the legal responsibilities of the parties.

Accepted Answer

There is no contract. The offe

Question 10

The owner of a new building wanted four maple trees, 6 metres tall, planted on the north side of the building. Lloyd Landscaper submitted his offer of four 6-metre maples planted for $800. The owner said he would pay $600 for that. Lloyd said, for $600 he would supply four smaller, 5-metre trees. The owner said, "$600 for 5-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 5-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 lapsed after a reasonable time. 
B)  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. 
C)  There is no contract because Lloyd's last offer was revoked. 
D)  There is no contract because Lloyd's last offer had been rejected by a counter-offer. 
E)  There is no contract because there is a presumption in law in these circumstances that the parties did not intend to create legal relationship. 
A)  There is no contract because Lloyd's last offer had lapsed after a reasonable time. 
B)  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. 
C)  There is no contract because Lloyd's last offer was revoked. 
D)  There is no contract because Lloyd's last offer had been rejected by a counter-offer. 
E)  There is no contract because there is a presumption in law in these circumstances that the parties did not intend to create legal relationship.

Question 11

On Friday, Harlan offers to sell Lily his motorcycle for $1,000. When Lily hesitates, Harlan tells her to take her time deciding, promising her he would give her the weekend to make up her mind. On Saturday, Harlan runs into Lily at the mall and informs her he has sold the bike to Angie instead. What recourse does Lily have?

Accepted Answer

Lily is out of luck. Harlan's promise to

Question 12

Four days ago, Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer - $1,000! When he went to the store this afternoon and said he wanted one, they replied that they didn't have any left, nor could they get one. On these facts, which of the following is true?

Accepted Answer

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

Question 13

Which of the following shows the use of the doctrine of promissory (equitable) estoppel?

Accepted Answer

A)  Val told Jim that she would give him her printer. If she doesn't, Jim could use the doctrine to force her to do so. 
B)  This doctrine can be used by a plaintiff to enforce a written promise that has been signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
C)  George rented a video and watched it with Elaine. She thought the movie was great and said she'd pay half the rental price. George could use the doctrine to force her to pay as she promised. 
D)  Lam contracted to supply Jones with steel. Before the steel was delivered, Lam's supplier increased the price. Lam could use the doctrine to force Jones to pay more to Lam. 
E)  Lee, a defendant, can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive Lee some of Lee's legal obligation and Lee relied on that promise. 
A)  Val told Jim that she would give him her printer. If she doesn't, Jim could use the doctrine to force her to do so. 
B)  This doctrine can be used by a plaintiff to enforce a written promise that has been signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
C)  George rented a video and watched it with Elaine. She thought the movie was great and said she'd pay half the rental price. George could use the doctrine to force her to pay as she promised. 
D)  Lam contracted to supply Jones with steel. Before the steel was delivered, Lam's supplier increased the price. Lam could use the doctrine to force Jones to pay more to Lam. 
E)  Lee, a defendant, can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive Lee some of Lee's legal obligation and Lee relied on that promise.

Question 14

One of the requirements in a contract is that there be an exchange of consideration between the parties. Explain what is meant by consideration.

Accepted Answer

Consideration is usually thought of as t

Question 15

The existence of a seal eliminates the need for the elements of a valid contract.

Accepted Answer

A) True 
 B)False

Question 16

What is "quantum meruit"?

Accepted Answer

The term means "as m

Question 17

Explain any limitations on the availability of promissory estoppel.

Accepted Answer

It can be used only

Question 18

Jed, who lived 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 noon, November 2. Jed told the store owner to send a letter of acceptance since he (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?

Accepted Answer

A)  Sending a letter by mail was not a reasonable method of acceptance. 
B)  The letter of acceptance was effective when it was received, and by then Jed had sold it, so there was no contract. 
C)  The acceptance was effective before the offer lapsed, so there was a contract between Jed and the store owner. 
D)  The offer was revoked before the store owner accepted. 
E)  The offer lapsed before the store owner accepted. 
A)  Sending a letter by mail was not a reasonable method of acceptance. 
B)  The letter of acceptance was effective when it was received, and by then Jed had sold it, so there was no contract. 
C)  The acceptance was effective before the offer lapsed, so there was a contract between Jed and the store owner. 
D)  The offer was revoked before the store owner accepted. 
E)  The offer lapsed before the store owner accepted.

Question 19

Sam owed Joe $6,000 due January 12, 2012. On January 1st, Joe said he'd take $5,000 in full satisfaction of the debt if Sam paid him $5,000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1,000 he (Joe) was legally owed. Which of the following is true?

Accepted Answer

A)  Joe would win because they cannot change the original deal. 
B)  Joe would lose because early repayment constituted consideration to support the new arrangement. 
C)  Joe would lose because of the rule that past consideration is no consideration. 
D)  Joe would win because his forgiveness of the loan was gratuitous, i.e. unsupported by consideration. 
E)  Joe would lose because of the doctrine of quantum meruit. 
A)  Joe would win because they cannot change the original deal. 
B)  Joe would lose because early repayment constituted consideration to support the new arrangement. 
C)  Joe would lose because of the rule that past consideration is no consideration. 
D)  Joe would win because his forgiveness of the loan was gratuitous, i.e. unsupported by consideration. 
E)  Joe would lose because of the doctrine of quantum meruit.

Question 20

Berman made a documentary on the life of musician Artie Shaw. Shaw was cooperative and gave her permission to use certain songs if she received proper permissions from the copyright holders. The cost of the film was funded by her own savings, a private investor, the Canada Council, the Ontario Arts Council, and deferred salaries and material costs. In March of 1987 the film won an academy award as the best feature documentary for 1986. In November of 1987 Shaw's lawyer contacted Berman's lawyer: "... This letter states that Artie Shaw has a 35% profit participation in the motion picture... ." Which of the following accurately sets out the legal position of the parties?

Accepted Answer

A)  A public celebrity has the right to prevent this kind of exploitation if Berman refuses this demand. 
B)  The court will award Shaw a reasonable profit because it is fair. 
C)  The court will imply an agreement to this effect between the parties. 
D)  Shaw has no claim since there was no such agreement. 
E)  Shaw has a right to this share because the movie is about him. 
A)  A public celebrity has the right to prevent this kind of exploitation if Berman refuses this demand. 
B)  The court will award Shaw a reasonable profit because it is fair. 
C)  The court will imply an agreement to this effect between the parties. 
D)  Shaw has no claim since there was no such agreement. 
E)  Shaw has a right to this share because the movie is about him.

A one-sided promise the courts will not enforce is known as ________.

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

When you pay for an option, this prevents a person from revoking his offer before the expiration of the specified time.

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary. We'll give you an IBM-compatible PC with a Roland PR-1011 printer for only $4 000!!! Pick it up today." This is an example of which of the following?

In the Pharmaceutical 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 of the following shows the use of the doctrine of promissory (equitable) estoppel?

One of the requirements in a contract is that there be an exchange of consideration between the parties. Explain what is meant by consideration.

The existence of a seal eliminates the need for the elements of a valid contract.

What is "quantum meruit"?

Explain any limitations on the availability of promissory estoppel.

Sam owed Joe $6,000 due January 12, 2012. On January 1st, Joe said he'd take $5,000 in full satisfaction of the debt if Sam paid him $5,000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1,000 he (Joe) was legally owed. Which of the following is true?

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

A one-sided promise the courts will not enforce is known as ________.

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

When you pay for an option, this prevents a person from revoking his offer before the expiration of the specified time.

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary. We'll give you an IBM-compatible PC with a Roland PR-1011 printer for only $4 000!!! Pick it up today." This is an example of which of the following?

In the Pharmaceutical 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 of the following shows the use of the doctrine of promissory (equitable) estoppel?

One of the requirements in a contract is that there be an exchange of consideration between the parties. Explain what is meant by consideration.

The existence of a seal eliminates the need for the elements of a valid contract.

What is "quantum meruit"?

Explain any limitations on the availability of promissory estoppel.

Sam owed Joe $6,000 due January 12, 2012. On January 1st, Joe said he'd take $5,000 in full satisfaction of the debt if Sam paid him $5,000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1,000 he (Joe) was legally owed. Which of the following is true?

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