Question 1

Which of the following is not correct with respect to the adequacy of consideration?

Accepted Answer

A)  Need not be present if the agreement is under seal 
B)  Must be of some value; love and affection are not enough 
C)  Existing duty: a change in the contract requires new consideration 
D)  Need not be legal if both parties clearly consent 
E)  Need not be fair, unless there are extenuating circumstances, i.e., insanity or fraud 
A)  Need not be present if the agreement is under seal 
B)  Must be of some value; love and affection are not enough 
C)  Existing duty: a change in the contract requires new consideration 
D)  Need not be legal if both parties clearly consent 
E)  Need not be fair, unless there are extenuating circumstances, i.e., insanity or fraud

Question 2

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad, found the kittens, and returned them. This is an example of which of the following?

Accepted Answer

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

Question 3

If you pay $1000 for a 90-day option on property offered at $200,000, which of the following is true?

Accepted Answer

A)  You have bought a 90-day period of time within which you may or may not accept the offer of the land. 
B)  The seller of the land can revoke the offer of the land any time before acceptance. 
C)  With the signing of the option agreement, you have entered into two contracts a contract for time and another for land. 
D)  If you do not exercise the option, you can get your $1000 back. 
E)  You have agreed that you will accept the offer of land within the 90-day period. 
A)  You have bought a 90-day period of time within which you may or may not accept the offer of the land. 
B)  The seller of the land can revoke the offer of the land any time before acceptance. 
C)  With the signing of the option agreement, you have entered into two contracts a contract for time and another for land. 
D)  If you do not exercise the option, you can get your $1000 back. 
E)  You have agreed that you will accept the offer of land within the 90-day period.

Question 4

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

Accepted Answer

A)  If Lam requests services from Jones and there is no mention of price, if Lam doesn't pay Jones, this doctrine can be used to force Lam to pay a reasonable amount. 
B)  George wants to force Elaine to honour her promise to pay him $2. After he paid for a video they watched, she was so moved by the movie she said she would pay half the cost. 
C)  This doctrine can be used by a plaintiff to endorse a written promise signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
D)  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. 
E)  George told Hans that he would give him his printer. If he doesn't, Hans could use the doctrine to force him to do so. 
A)  If Lam requests services from Jones and there is no mention of price, if Lam doesn't pay Jones, this doctrine can be used to force Lam to pay a reasonable amount. 
B)  George wants to force Elaine to honour her promise to pay him $2. After he paid for a video they watched, she was so moved by the movie she said she would pay half the cost. 
C)  This doctrine can be used by a plaintiff to endorse a written promise signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
D)  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. 
E)  George told Hans that he would give him his printer. If he doesn't, Hans could use the doctrine to force him to do so.

Question 5

Mary bought a new Macintosh computer and advertised her old computer system for $1,500. Mr. Jones offered to pay $1,000. Mary said no, she wanted $1,500. Mr. Jones offered $1,250. Mary rejected that and said she wanted $1,500, but then said to him, "I withdraw my offer, I've decided to give it to school and apply for the tax benefit." Mr. Jones said, "All right, I'll accept your offer of $1,500." Which of the following is true?

Accepted Answer

A)  There is a contract because at some point in time Mary was willing to sell and Mr. Jones was willing to buy the computer system for $1,500. 
B)  There is a contract, because once a seller makes an offer she cannot change her mind; she is bound to receive an acceptance. 
C)  There is a contract and Mr. Jones has to pay a reasonable price for Mary's old computer. 
D)  There is no contract because the last offer had lapsed. 
E)  There is no contract because Mary revoked the offer before Mr. Jones attempted to accept it. 
A)  There is a contract because at some point in time Mary was willing to sell and Mr. Jones was willing to buy the computer system for $1,500. 
B)  There is a contract, because once a seller makes an offer she cannot change her mind; she is bound to receive an acceptance. 
C)  There is a contract and Mr. Jones has to pay a reasonable price for Mary's old computer. 
D)  There is no contract because the last offer had lapsed. 
E)  There is no contract because Mary revoked the offer before Mr. Jones attempted to accept it.

Question 6

A reasonable price paid for requested services is referred to in law as ________.

Accepted Answer

The answer of A reasonable price paid for requested services...

Question 7

In Bawitko Investments Ltd. v. Kernels Popcorn Ltd., what did the Court of Appeal hold?

Accepted Answer

A)  A handshake is of no force or effect unless it accompanies a written agreement. 
B)  A handshake "seals the deal", even if essential provisions have not been determined. 
C)  A "contract to make a contract" is not a contract at all. 
D)  A "contract to make a contract" is enforceable at law. 
E)  Oral agreements do not constitute contracts within the meaning of legislation. 
A)  A handshake is of no force or effect unless it accompanies a written agreement. 
B)  A handshake "seals the deal", even if essential provisions have not been determined. 
C)  A "contract to make a contract" is not a contract at all. 
D)  A "contract to make a contract" is enforceable at law. 
E)  Oral agreements do not constitute contracts within the meaning of legislation.

Question 8

A letter of revocation takes effect when received by the offeree.

Accepted Answer

A) True 
 B)False

Question 9

If an offer is made by mail and an acceptance by mail is requested, when does a letter revoking the previous offer actually take effect?

Accepted Answer

A)  Never. A revocation must be done in person. 
B)  At the time that it is received, if before acceptance 
C)  At any time before actual performance of the contract has begun 
D)  At any time before a letter of acceptance is received by the offeror 
E)  At the time that it is posted 
A)  Never. A revocation must be done in person. 
B)  At the time that it is received, if before acceptance 
C)  At any time before actual performance of the contract has begun 
D)  At any time before a letter of acceptance is received by the offeror 
E)  At the time that it is posted

Question 10

Sylvia had contracted with Produce Palace to sell 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 her 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?

Accepted Answer

A)  If the postbox rule does not apply, there would be a contract as soon as Val mailed the letter unless Sylvia had sold the tomatoes to someone else. 
B)  There is a contract between Sylvia and Val the moment Val dropped the letter of acceptance in the postbox. 
C)  There is a contract between Sylvia and Val the day the letter of acceptance was received by Sylvia. 
D)  There is no contract between Sylvia and Val because Sylvia had revoked the offer. 
E)  There is no contract between Sylvia and Val because the offer has probably lapsed before the acceptance was received by Sylvia. 
A)  If the postbox rule does not apply, there would be a contract as soon as Val mailed the letter unless Sylvia had sold the tomatoes to someone else. 
B)  There is a contract between Sylvia and Val the moment Val dropped the letter of acceptance in the postbox. 
C)  There is a contract between Sylvia and Val the day the letter of acceptance was received by Sylvia. 
D)  There is no contract between Sylvia and Val because Sylvia had revoked the offer. 
E)  There is no contract between Sylvia and Val because the offer has probably lapsed before the acceptance was received by Sylvia.

Question 11

Generally, acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the "freedom of contract," explaining what the implications and limitations are in the context of contract law.

Accepted Answer

Here students should first identify that

Question 13

An ad in the morning paper read: "Brand new 2011 Ford Focus $19,499. No payment until January 2012. We make your first payment." This is an example of which of the following?

Accepted Answer

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

Question 14

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration. Assume all the other requirements for a binding contract have been met.

Accepted Answer

A)  Mary promised in writing and under seal to give Planned Parenthood a donation of $100. 
B)  John, late for work, found his car battery was dead. He flagged down a passing truck and told the driver he would pay him $8 if he would agree to do him the favour of jump-starting the car. The driver of the truck agreed. 
C)  Mr. Kooner sold a farm valued at $190,000 to his nephew for only $50,000. 
D)  Len agreed to sell and Karen agreed to buy four of Len's records for "some money." 
E)  Peter agreed to pay Ace Computers Ltd. $50 above the contract price if the company would have his new computer ready ten days earlier than the date specified in the original contract. 
A)  Mary promised in writing and under seal to give Planned Parenthood a donation of $100. 
B)  John, late for work, found his car battery was dead. He flagged down a passing truck and told the driver he would pay him $8 if he would agree to do him the favour of jump-starting the car. The driver of the truck agreed. 
C)  Mr. Kooner sold a farm valued at $190,000 to his nephew for only $50,000. 
D)  Len agreed to sell and Karen agreed to buy four of Len's records for "some money." 
E)  Peter agreed to pay Ace Computers Ltd. $50 above the contract price if the company would have his new computer ready ten days earlier than the date specified in the original contract.

Question 15

Joe offered to sell Harry his car for $500, but Harry said he needed some time to think about it. A couple of days later, Harry phoned back saying that he'd give Joe $450 for the car. Joe refused to take this. Then Harry said, "All right, I'll accept your offer for $500." Joe said that he'd changed his mind and refused to go through with the deal. Harry sued. Explain Joe's legal liability.

Accepted Answer

In this case, when Harry said he'd give

Question 16

Why is the case of Dickinson v. Dodds important?

Accepted Answer

A)  It says that property can be sold to two different purchasers. 
B)  It determines that offers, once made, can never be revoked. 
C)  It clarifies that when an offeror says an offer will remain open, it must remain open. 
D)  It illustrates the nature of an offer. 
E)  It confirms that contracts must be in writing to be valid. 
A)  It says that property can be sold to two different purchasers. 
B)  It determines that offers, once made, can never be revoked. 
C)  It clarifies that when an offeror says an offer will remain open, it must remain open. 
D)  It illustrates the nature of an offer. 
E)  It confirms that contracts must be in writing to be valid.

Question 17

Joe drove his car into Sam's garage to have some repair work done on the motor. He told Sam to fix the carburetor. Sam worked on it most of the afternoon and found he had to rebuild the carburetor. He presented Joe with a bill for $250 when he returned. Joe refused to pay, saying that he had taken a law course and knew that, because they didn't agree to a specific consideration ahead of time, he was not bound in contract. Was he correct? Explain.

Accepted Answer

This is an example of a request for serv

Question 18

The courts will examine the fairness of consideration when insanity, drunkenness, or undue influence may have affected the transaction.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Accepted Answer

A) True 
 B)False

Question 19

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000 due on February 25, 2012. The company is having difficult times and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements of the law is false?

Accepted Answer

A)  So long as they don't take the money, the bank can still sue for the entire amount. 
B)  At common law, if the bank accepted the $33,000 as payment in full, even absent additional consideration, it could not later sue for the remainder because such promises are always binding. 
C)  If the company obtained from the bank the bank's promise to forgive the $2,000 under seal, the bank could not later sue for the remainder. 
D)  In some jurisdictions, a statutory provision provides that the creditor who accepts less than full payment as payment in full cannot later sue for the remainder. 
E)  If the bank agrees to accept the $33,000 as payment in full if paid early, by February 15, and the company does as requested, the bank could not later sue for the remainder because the company gave good consideration for the bank's forgiveness of the debt. 
A)  So long as they don't take the money, the bank can still sue for the entire amount. 
B)  At common law, if the bank accepted the $33,000 as payment in full, even absent additional consideration, it could not later sue for the remainder because such promises are always binding. 
C)  If the company obtained from the bank the bank's promise to forgive the $2,000 under seal, the bank could not later sue for the remainder. 
D)  In some jurisdictions, a statutory provision provides that the creditor who accepts less than full payment as payment in full cannot later sue for the remainder. 
E)  If the bank agrees to accept the $33,000 as payment in full if paid early, by February 15, and the company does as requested, the bank could not later sue for the remainder because the company gave good consideration for the bank's forgiveness of the debt.

Question 20

Roberts has the chance to buy three adjacent city lots zoned "duplex." The most profitable return would be the building of four townhouses across the three lots, but that would necessitate getting permission from the city, and that procedure takes time. If Roberts buys a 60-day option from the seller of the properties for $400, which of the following is true?

Accepted Answer

A)  By buying the option, Roberts has bought a period of time during which she must accept the land offer. 
B)  If Roberts does not exercise the option, she will get her $400 back because she didn't get what she was bargaining for. 
C)  If Roberts does not exercise the option during the option period, she can later force the seller to sell that property to her at that price. 
D)  The offer for the properties will expire before the end of the designated 60-day period, if another person offers a higher price. 
E)  The seller is bound by contract neither to sell the property to any other party nor to revoke the offer within the option period. 
A)  By buying the option, Roberts has bought a period of time during which she must accept the land offer. 
B)  If Roberts does not exercise the option, she will get her $400 back because she didn't get what she was bargaining for. 
C)  If Roberts does not exercise the option during the option period, she can later force the seller to sell that property to her at that price. 
D)  The offer for the properties will expire before the end of the designated 60-day period, if another person offers a higher price. 
E)  The seller is bound by contract neither to sell the property to any other party nor to revoke the offer within the option period.

Which of the following is not correct with respect to the adequacy of consideration?

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad, found the kittens, and returned them. This is an example of which of the following?

If you pay $1000 for a 90-day option on property offered at $200,000, which of the following is true?

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

A reasonable price paid for requested services is referred to in law as ________.

In Bawitko Investments Ltd. v. Kernels Popcorn Ltd., what did the Court of Appeal hold?

A letter of revocation takes effect when received by the offeree.

If an offer is made by mail and an acceptance by mail is requested, when does a letter revoking the previous offer actually take effect?

Generally, acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Discuss the "freedom of contract," explaining what the implications and limitations are in the context of contract law.

An ad in the morning paper read: "Brand new 2011 Ford Focus $19,499. No payment until January 2012. We make your first payment." This is an example of which of the following?

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration. Assume all the other requirements for a binding contract have been met.

Why is the case of Dickinson v. Dodds important?

The courts will examine the fairness of consideration when insanity, drunkenness, or undue influence may have affected the transaction. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000 due on February 25, 2012. The company is having difficult times and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements of the law is false?

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

Which of the following is not correct with respect to the adequacy of consideration?

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad, found the kittens, and returned them. This is an example of which of the following?

If you pay $1000 for a 90-day option on property offered at $200,000, which of the following is true?

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

A reasonable price paid for requested services is referred to in law as ________.

In Bawitko Investments Ltd. v. Kernels Popcorn Ltd., what did the Court of Appeal hold?

A letter of revocation takes effect when received by the offeree.

If an offer is made by mail and an acceptance by mail is requested, when does a letter revoking the previous offer actually take effect?

Generally, acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Discuss the "freedom of contract," explaining what the implications and limitations are in the context of contract law.

An ad in the morning paper read: "Brand new 2011 Ford Focus $19,499. No payment until January 2012. We make your first payment." This is an example of which of the following?

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration. Assume all the other requirements for a binding contract have been met.

Why is the case of Dickinson v. Dodds important?

The courts will examine the fairness of consideration when insanity, drunkenness, or undue influence may have affected the transaction. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000 due on February 25, 2012. The company is having difficult times and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements of the law is false?

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