Exam 6: Formation of a Contract: Consideration and Intention

Nan promises not to sue Reg if he agrees to pay her $1000.Reg agrees to pay Nan $1000,but later discovers that she actually had no right to sue him.Is Reg bound to pay Nan?

Consideration is

A promise that is made without bargaining for or accepting anything in return is a

There is no contract unless each party intends to create a legally enforceable contract.

Which of the following is NOT true about consideration?

Motive can change a gratuitous promise into a binding contract.

Injurious reliance and equitable estoppel are two sides of the same coin.Explain.

Promissory estoppel can be used as the basis for a lawsuit.

What is the effect of sealing a contractual document?

Quantum meruit does not refer to the reasonable amount that a person merits for goods and services provided.

The concept of estoppel is where

When a contract is authenticated by the affixing of a seal,the contract will be enforceable even when it lacks

Today,the rule in Foakes v.Beer,that payment of a lesser sum in satisfaction of a greater sum is not payment at all,does not apply in Ontario.Explain.

On March 1,Al agrees to sell Barb his house for $250 000.Barb pays a deposit of $15 000,and they agree that title will transfer and the price will be paid on April 30.The agreement is signed by both parties under seal.What is the consideration on Barb's part?

James does some work for Jim.Jim refuses to pay on the grounds that not all the work was done.Jack takes Jim to court and the judge says Jack is entitled to a quantum meruit.This means that

A gratuitous promise differs from a contract in that

Jack and Jill are friends.Jack agrees to mow Jill's lawn and Jill agrees to pay Jack $50.00.Jill wants the lawn mowed by April 1.Jill returns on April 3 and finds that the lawn has not been mowed.Jill,who is entertaining the next day,goes to Jack and promises that if he mows the lawn that day,she will give him an additional $20.00.Jack mows the lawn but Jill refuses to pay him the additional $20.00.Which of the following is true?

All gratuitous promises are unenforceable.

Use this fact situation to answer the questions that follow it. In January 1941 in Canada,John Landlord and Harry Tenant enter into a lease under which Harry agrees to rent a house from John for five years at a rent of $1000.00 per month.In March 1941,Canada declares war on Germany and John tells Harry that until the war is over,Harry will not have to pay rent.Of course,Harry stops paying rent while the war goes on.The war ends in January 1945,and now John Landlord sues Harry for all of the rent from March 1941 to present.In turn,Harry is thinking of suing John Landlord on the basis that his statement to Harry about not paying the rent during the war was a contract. In the fact situation above,

Should promissory or equitable estoppel only be used as a defence?