Exam 7: Formation of a Contract: Consideration and Intention

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

Where there is an existing contract between two parties and,to ensure performance,one party promises to give more consideration than under the original contract,the new promise is binding and must be performed.

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

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.

Shahid orders a pizza by telephone and says he will pay on delivery.Which of the following would constitute consideration received by Shahid?

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,

The contractual requirement of consideration provides that

A promise by a creditor to accept less than full payment from a debtor is

The reasonable bystander test is

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

Motive can change a gratuitous promise into a binding contract.

Where there is an existing contract between two parties and one party,to ensure performance by the other,promises something more,so long as the other party also gives something more,there is a binding contract and the first party must perform the new promise.

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?

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?

Which of the following would a court NOT regard as consideration on the part of a party to a contract?

Consideration is

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

When one party to a concluded contract promises the other party something more,why is the new promise not binding?

Why is a promise to perform a pre-existing legal duty not consideration?

Allen is Harry's older brother.Yesterday,Allen asked Harry,an experienced plumber,to fix a leaky pipe below the sink of Allen's main floor washroom.Knowing that Allan had just lost his job and wanting to help him out,Harry did the work,which took him almost half a day to complete.The next day,Harry and Allen had an argument,and in anger Harry told Allen he expected to be paid for his work.In this situation,