Question 1

The concept that a contract is formed only when a complete offer is unconditionally accepted by the other side forms a fundamental rule in codified law.

Accepted Answer

A) True 
 B)False  False

Question 2

Jedco Wholesalers Ltd.and BigGrocer Inc.have agreed that Jedco will supply BigGrocer with 400 kilos of watermelon when the crop is harvested.Rather than agree on a set price,they have agreed that the price of the watermelon will be based on the cost of the watermelon to Jedco plus 25 percent.Would this contract be enforceable in court?

Accepted Answer

A)  Yes,because it is not necessary to set out final price in the contract as long as the price can be determined in some way,for example,by a formula. 
B)  No,because price is an essential term,and the parties have not clearly expressed the final price in their contract. 
C)  Yes,because parties have agreed to a formula that will produce a reasonable price. 
D)  No,because price must be decided at the time the contract is entered into and cannot be determined at a future date. 
A)  Yes,because it is not necessary to set out final price in the contract as long as the price can be determined in some way,for example,by a formula. 
B)  No,because price is an essential term,and the parties have not clearly expressed the final price in their contract. 
C)  Yes,because parties have agreed to a formula that will produce a reasonable price. 
D)  No,because price must be decided at the time the contract is entered into and cannot be determined at a future date. A

Question 3

On April 2,Tundra Outfitters Ltd.received an offer to purchase from Lakeview Resorts Inc.Lakeview sought 35 canoes for a May 30 delivery,at $300 per canoe.The offer specified acceptance was to be by fax,received by 4:00 p.m.on April 5.Tundra did not reply.Why would a court consider that no agreement had come into existence?

Accepted Answer

A)  The offer was rejected by the offeror. 
B)  The offeree took the offer off the table. 
C)  The offer was revoked prior to its acceptance. 
D)  The offer is missing because it is no longer alive. 
A)  The offer was rejected by the offeror. 
B)  The offeree took the offer off the table. 
C)  The offer was revoked prior to its acceptance. 
D)  The offer is missing because it is no longer alive. D

Question 4

Why are promises to keep offers open for particular periods of time normally unenforceable?

Accepted Answer

A)  because consideration is given in return for the promise to keep the offer open 
B)  because offers are always revocable 
C)  because offerors are entitled to make multiple offers 
D)  because such promises are contrary to public policy 
A)  because consideration is given in return for the promise to keep the offer open 
B)  because offers are always revocable 
C)  because offerors are entitled to make multiple offers 
D)  because such promises are contrary to public policy

Question 5

An offeror has specified the method of communication to be used by the offeree when accepting the offer.What principle would a court apply to determine whether acceptance had been perfected?

Accepted Answer

A)  The offer must have been made using the same method of communication. 
B)  The offer cannot be accepted by another method of communication. 
C)  Acceptance by a specified method of communication must be reasonable. 
D)  Acceptance by other means is effective when received by the offeror. 
A)  The offer must have been made using the same method of communication. 
B)  The offer cannot be accepted by another method of communication. 
C)  Acceptance by a specified method of communication must be reasonable. 
D)  Acceptance by other means is effective when received by the offeror.

Question 6

Identify the source of a competing analysis of the traditional common law view of unenforceability of a gratuitous promise.Provide a brief explanation of the competing analysis and explain the goal it was meant to achieve.

Accepted Answer

The competing analysis is offered by the

Question 7

How do the courts get around the basic rule that a gratuitous promise is not enforceable if they feel that not enforcing such a promise would be unfair? Identify and briefly describe the requirements for this "get around."

Accepted Answer

The courts solve the problem by applying

Question 8

In order to form the basis for a contract,an offer must satisfy what condition?

Accepted Answer

A)  It must be in writing. 
B)  It must contain a request. 
C)  It must contain all essential terms. 
D)  It must state when the offer will expire. 
A)  It must be in writing. 
B)  It must contain a request. 
C)  It must contain all essential terms. 
D)  It must state when the offer will expire.

Question 9

What is the meant by the statement that an offer "has lapsed"?

Accepted Answer

A)  that the time for acceptance by the offeror has passed 
B)  that the offer must be available for acceptance 
C)  that the offeror has lost the capacity to fulfill the contract 
D)  that the rejection of the offer has occurred 
A)  that the time for acceptance by the offeror has passed 
B)  that the offer must be available for acceptance 
C)  that the offeror has lost the capacity to fulfill the contract 
D)  that the rejection of the offer has occurred

Question 10

Identify and briefly define the events that will cause an offer to be taken off the table.

Accepted Answer

Following are the events that will cause

Question 11

Revocation may be communicated through a reliable third-party source.

Accepted Answer

A) True 
 B)False

Question 12

Contracts between family members are just as binding and enforceable as contracts in the marketplace.

Accepted Answer

A) True 
 B)False

Question 13

Provide a legal analysis of a typical retail transaction,discussing offer,acceptance,consideration,and intention.

Accepted Answer

The ad and store display used to market

Question 14

What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?

Accepted Answer

A)  The innocent party must agree to a "price" for the defendant's promise. 
B)  The work must be performed. 
C)  The consideration must be adequate. 
D)  The promise must be accepted. 
A)  The innocent party must agree to a "price" for the defendant's promise. 
B)  The work must be performed. 
C)  The consideration must be adequate. 
D)  The promise must be accepted.

Question 15

What is the modern-day rationale for enforcing a gratuitous promise if the promisor has placed a seal beside his or her signature?

Accepted Answer

A)  The presence of the seal protects against forgery. 
B)  The application of the seal suggests serious intent to be legally bound. 
C)  The presence of the seal suggests a "firm offer" is being made. 
D)  The seal serves to verify the identity of the parties. 
A)  The presence of the seal protects against forgery. 
B)  The application of the seal suggests serious intent to be legally bound. 
C)  The presence of the seal suggests a "firm offer" is being made. 
D)  The seal serves to verify the identity of the parties.

Question 16

What principle of law was established in Dickinson v.Dodds [1876] 2 Ch.D.463 (C.A.)?

Accepted Answer

A)  that advertisements are merely invitations to treat 
B)  that all parties must agree on price 
C)  that an offer can consist of a gratuitous promise 
D)  that firm offers can be revoked prior to their deadlines 
A)  that advertisements are merely invitations to treat 
B)  that all parties must agree on price 
C)  that an offer can consist of a gratuitous promise 
D)  that firm offers can be revoked prior to their deadlines

Question 17

Contracts that contain unreasonable terms are unenforceable.

Accepted Answer

A) True 
 B)False

Question 18

A firm offer differs from an offer because cannot be revoked.

Accepted Answer

A) True 
 B)False

Question 19

Standard form contracts are used to ensure that contract terms are fair to both parties.

Accepted Answer

A) True 
 B)False

Question 20

An offeree may revoke an offer any time prior to acceptance by merely notifying the offeror of its withdrawal.

Accepted Answer

A) True 
 B)False

Exam 6: Forming Contractual Relationships

The concept that a contract is formed only when a complete offer is unconditionally accepted by the other side forms a fundamental rule in codified law.

Why are promises to keep offers open for particular periods of time normally unenforceable?

An offeror has specified the method of communication to be used by the offeree when accepting the offer.What principle would a court apply to determine whether acceptance had been perfected?

Identify the source of a competing analysis of the traditional common law view of unenforceability of a gratuitous promise.Provide a brief explanation of the competing analysis and explain the goal it was meant to achieve.

How do the courts get around the basic rule that a gratuitous promise is not enforceable if they feel that not enforcing such a promise would be unfair? Identify and briefly describe the requirements for this "get around."

In order to form the basis for a contract,an offer must satisfy what condition?

What is the meant by the statement that an offer "has lapsed"?

Identify and briefly define the events that will cause an offer to be taken off the table.

Revocation may be communicated through a reliable third-party source.

Contracts between family members are just as binding and enforceable as contracts in the marketplace.

Provide a legal analysis of a typical retail transaction,discussing offer,acceptance,consideration,and intention.

What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?

What is the modern-day rationale for enforcing a gratuitous promise if the promisor has placed a seal beside his or her signature?

What principle of law was established in Dickinson v.Dodds [1876] 2 Ch.D.463 (C.A.)?

Contracts that contain unreasonable terms are unenforceable.

A firm offer differs from an offer because cannot be revoked.

Standard form contracts are used to ensure that contract terms are fair to both parties.

An offeree may revoke an offer any time prior to acceptance by merely notifying the offeror of its withdrawal.

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

An Introduction to Contracts

The Terms of a Contract

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

The Sale of Goods

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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