Question 1

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

Accepted Answer

There is no fresh consideration for the new promise.

Question 2

A document made under seal does not require consideration.

Accepted Answer

A) True 
 B)False  True

Question 3

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?

Accepted Answer

As long as a party has an honest belief in a right to sue,giving up that right can be consideration for a promise on the part of the other party.This applies even though the belief in the right to sue was mistaken.

Question 4

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

Accepted Answer

A person who owes a pre-existing legal d

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Motive can change a gratuitous promise into a binding contract.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) a promissory basis. 
B) an acceptance. 
C) consideration. 
D) contractual intention. 
E) an offer. 
A) a promissory basis. 
B) an acceptance. 
C) consideration. 
D) contractual intention. 
E) an offer.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) promissory estoppel. 
B) covenant. 
C) quantum meruit. 
D) consideration. 
E) gratuitous promise. 
A) promissory estoppel. 
B) covenant. 
C) quantum meruit. 
D) consideration. 
E) gratuitous promise.

Question 10

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.

Accepted Answer

Ontario,together with a number

Question 11

When Sav was a teenager,he was involved in a boating accident.After seeing the accident,Philip approached in a second vessel and saved Sav's life.Some years later Sav promised to reward Philip for his life-saving actions.He specifically promised to turn over a valuable coin set that he had acquired over the years.On the day he was to deliver the coin set Sav changed his mind and said that although he was grateful,he was not going to part with the coin set.Philip's court action to enforce the promise will

Accepted Answer

A) succeed because the promise is binding. 
B) fail because the promise is gratuitous and not binding. 
C) succeed because the previous benefit constitutes consideration. 
D) succeed because consideration will be implied at law. 
E) fail because a deposit is required when dealing with past consideration. 
A) succeed because the promise is binding. 
B) fail because the promise is gratuitous and not binding. 
C) succeed because the previous benefit constitutes consideration. 
D) succeed because consideration will be implied at law. 
E) fail because a deposit is required when dealing with past consideration.

Question 12

An intention to create legal relations exists if

Accepted Answer

A) the promisor and the promisee have identified all the consideration involved in the contract. 
B) there is an offer,acceptance,and consideration. 
C) a reasonable person would believe that the parties intended to be bound by the contract. 
D) the court examines the facts and determines that the parties intended to enter into legal relations. 
E) the parties have capacity to enter into a contract. 
A) the promisor and the promisee have identified all the consideration involved in the contract. 
B) there is an offer,acceptance,and consideration. 
C) a reasonable person would believe that the parties intended to be bound by the contract. 
D) the court examines the facts and determines that the parties intended to enter into legal relations. 
E) the parties have capacity to enter into a contract.

Question 13

What is the effect of sealing a contractual document?

Accepted Answer

A seal is a mark that is placed on a wri

Question 14

All gratuitous promises are unenforceable.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) placing the call 
B) promising to pay for the pizza 
C) handing over the money 
D) accepting delivery of the pizza 
E) none of the above 
A) placing the call 
B) promising to pay for the pizza 
C) handing over the money 
D) accepting delivery of the pizza 
E) none of the above

Question 16

Motive is irrelevant to consideration.Explain.

Accepted Answer

Consideration is the price that one pers

Question 17

When one person requests the services of another,and the other performs those services,the law

Accepted Answer

A) requires that the plaintiff prove there was a promise to pay. 
B) treats the services as being provided gratuitously. 
C) implies a promise to pay. 
D) recognizes no implied promise to pay. 
E) requires that the service provider pay a specific amount. 
A) requires that the plaintiff prove there was a promise to pay. 
B) treats the services as being provided gratuitously. 
C) implies a promise to pay. 
D) recognizes no implied promise to pay. 
E) requires that the service provider pay a specific amount.

Question 18

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

Accepted Answer

A) unenforceable because the creditor did not provide consideration. 
B) enforceable because the promisee accepts the offer. 
C) a bilateral contract. 
D) unenforceable because it is a gratuitous promise. 
E) enforceable because it gives rise to a contract. 
A) unenforceable because the creditor did not provide consideration. 
B) enforceable because the promisee accepts the offer. 
C) a bilateral contract. 
D) unenforceable because it is a gratuitous promise. 
E) enforceable because it gives rise to a contract.

Question 19

The reasonable amount that a person deserves to be paid for goods and services provided to the person requesting them is called

Accepted Answer

A) gratuitous promise. 
B) quantum meruit. 
C) damages. 
D) covenant. 
E) promissory amount. 
A) gratuitous promise. 
B) quantum meruit. 
C) damages. 
D) covenant. 
E) promissory amount.

Question 20

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.

Accepted Answer

A) True 
 B)False

Exam 7: Formation of a Contract: Consideration and Intention

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

A document made under seal does not require consideration.

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?

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

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

Motive can change a gratuitous promise into a binding contract.

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

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

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

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.

An intention to create legal relations exists if

What is the effect of sealing a contractual document?

All gratuitous promises are unenforceable.

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

Motive is irrelevant to consideration.Explain.

When one person requests the services of another,and the other performs those services,the law

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

The reasonable amount that a person deserves to be paid for goods and services provided to the person requesting them is called

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.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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