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

Ann was offered a job that would pay $50,000, that would provide for 18 days of vacation after one year of employment, and that would begin one week after her graduation. She wrote back that she would accept the job, but that she would not begin until three weeks after graduation and needed at least 21 days of vacation after the first year of work. On these facts, which of the following is true?

Distinguish between a formal and a simple contract.

What is "quantum meruit"?

The owner of a new building wanted four maple trees, 6 metres tall, planted on the north side of the building. Lloyd Landscaper submitted his offer of four 6-metre maples planted for $800. The owner said he would pay $600 for that. Lloyd said, for $600 he would supply four smaller, 5-metre trees. The owner said, "$600 for 5-metre trees plus a Christmas tree for my kids." Lloyd was disgusted and said, "Forget it. I don't need this job." As he was leaving the owner said, "All right, I'll accept your offer of $600 for the 5-metre maples planted." Lloyd kept on walking. Which of the following is true?

Harry saw Joe in his classic Buick at a local drive-in restaurant and talked about wanting to buy the car. Joe offered to sell it to him for $1500. Harry said he needed some time to think about it and that he would send him a letter. The next day, Joe changed his mind and mailed Harry a letter of revocation. The day after that, before Harry had received the letter of revocation, he sent a letter of acceptance to Joe. The next day the two letters arrived at their various destinations, Joe receiving Harry's letter of acceptance just after Harry received Joe's letter of revocation. Explain the legal liabilities of the parties.

From the point of view of consideration, would there be an issue if an off-duty police officer were hired to provide security services?

When Mr. Adams tells the local Boys' and Girls' Club that he will give them $5,000 if they promise to use the funds for their summer camping program, this is an example of which one of the following?

For the requirement of consideration to be satisfied, at least one of the parties must have performed what they promised.

Consideration is restricted to the exchange of money.

Discuss the requirement of consensus in the formation of contract. In your answer, consider the role of offer and acceptance and also look at the degree of understanding required between the parties.

Acceptance of an offer by email or web-based communication can create certain difficulties. What can be done to minimize the impact of such problems?

Which of the following is an example of a unilateral contract?

The promise of "love and affection" can constitute adequate consideration to support a contract.

List the five ingredients necessary to form a contract.

A reasonable price paid for requested services is referred to in law as ________.

George contracted with Bob to have a racing bike modified for him and delivered on February 20, for a race on February 22. A price of $100 for the modification was agreed on. On February 10, George became nervous about the bike being finished on time and went to see Bob. Bob said that he was very busy, but if he really wanted to be sure that it would be finished on time, George would have to pay him an extra $25 so he could pay his employees overtime. George agreed and Bob completed the modifications as requested, on time. How much does George legally owe?

The owner of a large restaurant wanted four large pots of flowers in front of the restaurant. Laura, a landscaper, submitted her offer: four large pots with flowers for $800. The owner said he would pay $600 for that. Laura said, "For $600, I'll provide four smaller pots with flowers." The owner said, "$600 for the smaller pots with flowers plus an arrangement for the front desk." Laura said, "Forget it," and started to leave. The owner said, "All right, I'll accept your offer of $600 for the four smaller pots with flowers." Laura didn't answer and got into her truck and drove off. On these facts, which of following is true?

With regards to Internet transactions, an offer will be accepted and a contract formed as soon as a message is sent, and it is received as soon as it arrives on the recipient's computer, even if it is never read.

Joe sends Sanjay an offer via email from his Toronto office. The offer contains a provision indicating the offer expires at 5:00 p.m. Toronto time. Sanjay, who lives in Vancouver, replies accepting Joe's offer at 4:00 p.m. Vancouver time. Joe received Sanjay's email acceptance at 9:00 a.m. the next day. Which of the following statements is true? (Note the three hour time difference between Toronto and Vancouver)

Jon was developing a computer program for use by owners of track clubs to aid them in keeping records of the members, their runs, times, injuries, etc. Eager to finish the program, Jon, in Edmonton, called his friend Sam, in Calgary, and offered him $4000 to help: five hours working per day, for five days week, for five weeks. Sam said that he would have to think about it. Jon told Sam that he was eager to get going, but that he would hold the offer open until Friday, February 6, at noon. Which of the following is true? (Read each separately.)