Question 1

If the postbox rule applies, a letter of revocation takes effect at the time of mailing.

Accepted Answer

A) True 
 B)False  False

Question 2

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.

Accepted Answer

There is no contract. The offer expired at the end of a specific time (Saturday at noon) before there was an attempt to accept it.

Question 3

What was significant about the case of R. v. Commercial Credit Corp.?

Accepted Answer

A)  It abolished the postbox rule in Canada. 
B)  It determined that the postbox rule should be extended to letters of revocation as well as letters of acceptance. 
C)  It confirmed that acceptance by post is always appropriate. 
D)  It determined that consideration is unnecessary in cases where consensus has been achieved in writing. 
E)  It is one of the few cases where the postbox rule has been extended beyond communication by mail or telegram. 
A)  It abolished the postbox rule in Canada. 
B)  It determined that the postbox rule should be extended to letters of revocation as well as letters of acceptance. 
C)  It confirmed that acceptance by post is always appropriate. 
D)  It determined that consideration is unnecessary in cases where consensus has been achieved in writing. 
E)  It is one of the few cases where the postbox rule has been extended beyond communication by mail or telegram. E

Question 4

Which of the following is correct with respect to the operation of the postbox rule?

Accepted Answer

A)  For the postbox rule to apply, the offer must be made by mail. 
B)  If the postbox rule applies, an acceptance must be communicated and heard by the offeree before it is effective. 
C)  If the postbox rule applies, the acceptance is effective at the time of mailing. 
D)  If the postbox rule applies, the only way for an acceptance to be effective is if it is sent by mail. 
E)  For the postbox rule to apply, the offeror must make that clear when the offer is made. 
A)  For the postbox rule to apply, the offer must be made by mail. 
B)  If the postbox rule applies, an acceptance must be communicated and heard by the offeree before it is effective. 
C)  If the postbox rule applies, the acceptance is effective at the time of mailing. 
D)  If the postbox rule applies, the only way for an acceptance to be effective is if it is sent by mail. 
E)  For the postbox rule to apply, the offeror must make that clear when the offer is made.

Question 5

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)

Accepted Answer

A)  Joe and Sanjay had a binding contract, since Sanjay had accepted by 4:00 p.m. Vancouver time. 
B)  Once Sanjay had sent his email, a binding contract had been formed, regardless of what time Joe had received the email. 
C)  Joe's offer had expired. 
D)  The contract became binding once Joe had made the offer. 
E)  A binding contract was formed once Joe opened Sanjay's email acceptance the next day. 
A)  Joe and Sanjay had a binding contract, since Sanjay had accepted by 4:00 p.m. Vancouver time. 
B)  Once Sanjay had sent his email, a binding contract had been formed, regardless of what time Joe had received the email. 
C)  Joe's offer had expired. 
D)  The contract became binding once Joe had made the offer. 
E)  A binding contract was formed once Joe opened Sanjay's email acceptance the next day.

Question 6

When you pay for an option, this prevents a person from revoking his offer before the expiration of the specified time.

Accepted Answer

A) True 
 B)False

Question 7

Once a person has promised to hold an offer open for a specified period of time, he cannot change his mind.

Accepted Answer

A) True 
 B)False

Question 8

You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is False?

Accepted Answer

A)  If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding. 
B)  If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100. 
C)  If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100. 
D)  If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100. 
E)  If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900. 
A)  If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding. 
B)  If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100. 
C)  If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100. 
D)  If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100. 
E)  If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900.

Question 9

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?

Accepted Answer

A)  Only $100 because Bob had an existing duty to modify the bike and the price was settled. 
B)  $125 because Bob gave consideration for George's promise to pay the additional $25. 
C)  $25 because past consideration is no consideration. 
D)  A reasonable amount only. 
E)  $100 plus whatever it cost for the overtime. 
A)  Only $100 because Bob had an existing duty to modify the bike and the price was settled. 
B)  $125 because Bob gave consideration for George's promise to pay the additional $25. 
C)  $25 because past consideration is no consideration. 
D)  A reasonable amount only. 
E)  $100 plus whatever it cost for the overtime.

Question 10

Joe owed Sam $500. Two days after the money was due, he came to Sam saying he couldn't pay the $500, but if Sam would accept $300 as full payment, Joe would pay him right then and there. Sam agreed and the money was paid. Sam then sued for the other $200. Will he win?

Accepted Answer

Probably not (depends on the jurisdictio

Question 11

The courts may enforce an unfair bargain.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt.

Accepted Answer

Under the common law, a gratuitous debt

Question 13

When a person has agreed to paint a house and, before the job is finished and payment is due, the other party refuses to allow completion, the court will use the quantum meruit principle to require the breaching party to pay a reasonable price for the benefit he has received.

Accepted Answer

A) True 
 B)False

Question 14

Carlos visited Vancouver last summer and instead of going back to Ontario he stayed and enrolled at Simon Fraser University. He needed money but didn't need things left in Ontario, including his car. In mid-December, he wrote a friend and offered to sell the car for $4000 and told him to send him a letter with his answer. His friend received the letter on January 2, checked his financial situation, and sent a letter of acceptance January 3. Meanwhile Carlos, short of cash and not having heard from his friend, sold the car to Mr. Reno on December 31. Carlos received his friend's letter January 8. On these facts, which of the following is true?

Accepted Answer

A)  In order for there to be a binding contract, there must be an offer and receipt of the letter. 
B)  All methods of acceptance are effective upon receipt by the offeror. 
C)  Sending an acceptance by mail was not a reasonable method of acceptance in this situation. 
D)  The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract. 
E)  The acceptance was effective before it was received, so there was a contract between Carlos and his friend. 
A)  In order for there to be a binding contract, there must be an offer and receipt of the letter. 
B)  All methods of acceptance are effective upon receipt by the offeror. 
C)  Sending an acceptance by mail was not a reasonable method of acceptance in this situation. 
D)  The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract. 
E)  The acceptance was effective before it was received, so there was a contract between Carlos and his friend.

Question 15

Generally, acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the validity of online transactions and the related issues that arise in transacting business over the Internet.

Accepted Answer

Students should point out that online tr

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

What would be the result if a police officer arrived at the scene of crime in progress and demanded money from the victim to arrest the offender?

Accepted Answer

Such a contract woul

Question 19

Which of the following is true with respect to the application of contract law to the Internet?

Accepted Answer

A)  Even if the basic requirements of acceptance are met, an offer accepted by e-mail has been deemed legally ineffective. 
B)  Clicking an "I Accept" button is used by some online vendors to make an Internet user believe that the terms presented are binding, however "click-wrap" cases have confirmed that this action has no legal effect. 
C)  Online communications are governed by the postbox rule. 
D)  Many jurisdictions have passed legislation making electronic communications the equivalent of written documents for legal purposes. 
E)  Internet contracts are governed by the federal Uniform Electronic Commerce Act, in effect throughout Canada. 
A)  Even if the basic requirements of acceptance are met, an offer accepted by e-mail has been deemed legally ineffective. 
B)  Clicking an "I Accept" button is used by some online vendors to make an Internet user believe that the terms presented are binding, however "click-wrap" cases have confirmed that this action has no legal effect. 
C)  Online communications are governed by the postbox rule. 
D)  Many jurisdictions have passed legislation making electronic communications the equivalent of written documents for legal purposes. 
E)  Internet contracts are governed by the federal Uniform Electronic Commerce Act, in effect throughout Canada.

Question 20

Explain the postbox rule and discuss its relevancy in the modern business world.

Accepted Answer

This question requires students to demon

If the postbox rule applies, a letter of revocation takes effect at the time of mailing.

What was significant about the case of R. v. Commercial Credit Corp.?

Which of the following is correct with respect to the operation of the postbox rule?

When you pay for an option, this prevents a person from revoking his offer before the expiration of the specified time.

Once a person has promised to hold an offer open for a specified period of time, he cannot change his mind.

You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is False?

Joe owed Sam $500. Two days after the money was due, he came to Sam saying he couldn't pay the $500, but if Sam would accept $300 as full payment, Joe would pay him right then and there. Sam agreed and the money was paid. Sam then sued for the other $200. Will he win?

The courts may enforce an unfair bargain.

Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt.

When a person has agreed to paint a house and, before the job is finished and payment is due, the other party refuses to allow completion, the court will use the quantum meruit principle to require the breaching party to pay a reasonable price for the benefit he has received.

Generally, acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Discuss the validity of online transactions and the related issues that arise in transacting business over the Internet.

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

What would be the result if a police officer arrived at the scene of crime in progress and demanded money from the victim to arrest the offender?

Which of the following is true with respect to the application of contract law to the Internet?

Explain the postbox rule and discuss its relevancy in the modern business world.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

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

If the postbox rule applies, a letter of revocation takes effect at the time of mailing.

What was significant about the case of R. v. Commercial Credit Corp.?

Which of the following is correct with respect to the operation of the postbox rule?

When you pay for an option, this prevents a person from revoking his offer before the expiration of the specified time.

Once a person has promised to hold an offer open for a specified period of time, he cannot change his mind.

You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is False?

Joe owed Sam $500. Two days after the money was due, he came to Sam saying he couldn't pay the $500, but if Sam would accept $300 as full payment, Joe would pay him right then and there. Sam agreed and the money was paid. Sam then sued for the other $200. Will he win?

The courts may enforce an unfair bargain.

Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt.

When a person has agreed to paint a house and, before the job is finished and payment is due, the other party refuses to allow completion, the court will use the quantum meruit principle to require the breaching party to pay a reasonable price for the benefit he has received.

Generally, acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Discuss the validity of online transactions and the related issues that arise in transacting business over the Internet.

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

What would be the result if a police officer arrived at the scene of crime in progress and demanded money from the victim to arrest the offender?

Which of the following is true with respect to the application of contract law to the Internet?

Explain the postbox rule and discuss its relevancy in the modern business world.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters