Exam 6: Formation of Contracts

From the point of view of consideration, would there be an issue if an off-duty police officer were hired to provide security services?

All of the essential terms of a contract must be clearly specified.

Discuss the requirement of consensus in the formation of contract. In your answer, consider the role of offer and acceptance, and also look at the degree of understanding required between the parties.

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

In Martel Building Ltd. v. Canada, what did the Supreme Court of Canada decide?

Only the person or group to whom an offer is made can accept it.

To what does a "standard form contract" refer?

The courts may enforce an unfair bargain.

An acceptance of an offer applies when and where it is received except when it is communicated by telephone.

Sarah wanted an antique lamp for the bedroom. While in a second-hand shop, she saw a lamp that she really wanted marked $100. She offered the owner $75 for it. He said "I'll take $95." She answered "$80!" He said, "Lady, you're pushing me a bit, aren't you? I'll take $90, that's it." She said "OK I'll pay $90 if you throw in this old 'Vote-for-Trudeau' button." He said, "Forget it, lady, my shop is closed," and asked her to leave. She said, "OK, I accept your offer of $95." He made no response. If she sues for breach of contract, which of the following is true?

The courts will use quantum meruit to determine what should be paid when a person providing services is not allowed to finish by a breaching party.

Which of the following would best satisfy the requirements for a good legal offer?

X contracted with Z. X promised to pay $500; Z promised to build a cabinet to hold X's DVD's. The essential terms included the type and quality of the wood, the dimensions, and the date of completion February 13, 2011. The work went more easily than expected and Z said to X, "If you pay me another $85, I will have this finished and be out of here by February 10." X agreed. If the cabinet was done to specifications by the 10th, but X refused to pay anything, Z would be entitled in law to

What must be present in an offer before it qualifies as such?

In contract cases, the court generally

The ad in the Real Estate Weekly read: "Best offer in Toronto! 3-bedroom home in the Annex for only $300,000!" This is an example of which of the following?

Joe owed Sam $500. Two days after the money was due, he came to Sam saying he couldn't pay the $500, but if Sam would accept $300 as full payment, Joe would pay him right then and there. Sam agreed and the money was paid. Sam then sued for the other $200. Will he win?

A person is required to honour a gratuitous promise if made under seal.

An agreement for the purchase and sale of property included the following words: "Subject to the purchaser obtaining satisfactory financing by 5 p.m. on Friday, February 22, 2011." If the court held that this subject-to clause was so vague that "the entire contract was void for uncertainty," this would mean that

Jon was developing a computer program for use by owners of track clubs, which would 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 $4000 to help: five hours a working day, five days 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, 2011, at noon. Which of the following is true? (Read each separately.)