Exam 5: Elements of Contracts, E-Commerce and Technology

Electronic contracts are required to be in a special format.

Contracts are the most common and basic legal document used by a business.

A contract is a business's basic protection in a commercial transaction.

James says he would like to buy Mike's motorbike for $3,000. Mike responds by saying he would accept $4,000 given all the work he has put into it. James says "Ok. I'll give that. Here's $2,000 now, and I'll pay the balance in two installments."

Basic contract law does apply to online contracts.

Keeping a contract short is the best way to avoid legal disputes arising from the contract.

Contracts can be both partially written and oral.

Andy offers to sell his car to Bob, but Bob needs to arrange financing, so Andy says he will give Bob three days to do so. Andy can revoke the offer before the three days are up.

International e-commerce contracts are not valid in Canada.

Contracts for guarantees are required to be in writing.

Mary loves to shop online, particularly from one online retailer. She recently purchased two items that were sent to her home. She contacted the company and wanted to return the items. The Company said "You clicked the 'I agree' button. We do not accept returns." Mary should be able to successfully argue that there was no contract as she did not agree to the "no return" policy.

Terms of an oral contract are easier to prove in court.

In contracts between family members, the courts will not presume that parties have an intention to enter into a contact.

The courts generally presume parties intend to be legally bound by a contract.

There are no exceptions to the substantive aspects of contracts within the control of the parties.

Standard form contracts are contracts drafted by one party and usually for their benefit.

Which of the following is not a requirement for a valid contract?

An option agreement is enforceable when separate consideration is paid to the offeree.

McSweeney agrees to clear out Broad's basement, but no price is set at the time. Broad argues, once McSweeney has done the work, that since no price was agreed upon, he should pay only a reasonable price and not the excessive amount stated in the bill presented to him by McSweeney. He is right.

Contracts for guarantees are not required to be in writing.