Exam 6: The Elements of a Contract: Consensus and Consideration

Discuss the requirements for a valid offer, explaining both how an offer is to be communicated and how such an offer can be brought to an end.

Only the person or group to whom an offer is made can accept it.

Describe the effect of E-Commerce legislation in your province.

Joe offered to sell Harry his car and agreed to hold the offer open for one week, expiring Saturday at noon. The Sunday after the offer was said to have expired, Harry phoned Joe to tell him that he decided to accept his offer and purchase his car. Joe said at that time that he had decided to keep the car and was just about to phone Harry to revoke the offer. Harry said, "Too bad," and demanded performance of the contract. Explain the legal responsibilities of the parties.

Martin offered to buy the property for $200,000, "offer to remain open until 5:00 p.m. on Thursday, January 21st." Which one of the following situations will not cause the offer to end?

Jed, who lived on Cape Breton Island, needed money for a trip to France. He decided to sell his electric guitar. On Monday, October 29, he called the owner of a music store in Halifax and offered to sell his Fender Stratocaster guitar for $1800, the offer to be open until Friday noon, November 2. Jed told the store owner to send a letter of acceptance since he (Jed) would be away for a few days. The store owner examined his inventory and mailed a letter of acceptance on Thursday, November 1. When Jed returned home on Saturday, November 3, the letter had not yet arrived, so that afternoon he sold the guitar to a music teacher in his town. The store owner in Halifax sued for breach of contract. Which of the following is true?

As property manager of a 15-unit apartment block, you receive rent payments on the first of every month from each tenant. Mrs. Lone, in apartment 105, whose rent is $500 per month, lost her job and was in dire financial difficulties. You agreed to take only $400 per month. For the last ten months, she has paid only $400 a month, but you have learned that for 4 months she has had a new and even better-paying job. You are angry that she failed to tell you this and you want to sue her for the entire amount of back rent ($1000). Which of the following arguments could she use most effectively against you?

A letter of revocation takes effect when received by the offeree.

Discuss the "freedom of contract," explaining what the implications and limitations are in the context of contract law.

Joe made an offer to sell his car to Harry, promising to keep the offer open for a week. However, he changed his mind, sold the car to someone else, and phoned Harry to inform him that he was withdrawing his offer because he had sold the car to someone else. Harry was angry and said that he wanted the car and was going to hold him to his promise to hold the offer open for a week. He sued for breach of contract. Will he win? Explain.

Anmool verbally agreed to build a deck for Nikki for $1000 by the 15th of September, in time for a lavish backyard barbecue she was planning. On September 13th, Nikki became concerned at Anmool's lack of progress. Anmool told Nikki he would complete the deck on time, for an additional $200. Nikki agreed and Anmool completed the deck on time. Which of the following is correct?

One of the requirements in a contract is that there be an exchange of consideration between the parties. Explain what is meant by consideration.

Joe offered to sell Harry his car for a specific price and Harry indicated that he needed some time to think about it. Two days later, Joe sold the car to a third party. That afternoon Harry phoned Joe and told Joe that he had decided to accept the offer and that he'd buy the car. Joe told him that it was too late; he had sold it to someone else. Harry said that it was offered to him first, and he insisted that he go through with the contract. Explain the legal liability of the parties.

Which of the following statements regarding online transactions is false?

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

Bob in Burnaby called Ed in Toronto and offered to sell him 40 kilograms of smoked salmon at $15 per kilogram. He requested that Ed phone him back by noon the next day. That way, Bob could offer it to someone else if Ed wasn't interested. Instead of phoning, Ed sent a letter of acceptance, in which he said that he would have his agent pick up the fish. On these facts, which of the following is false?

Distinguish between a bilateral and a unilateral contract.

Explain any limitations on the availability of promissory estoppel.

If you owe Mr. Storr $900 for goods received and Mr. Storr agrees to take $800 in full satisfaction of the debt, which of the following is true?

Clicking the "I Accept" button is the equivalent of removing the shrink wrap from a product; it indicates acceptance of the terms of the electronic purchase.