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

On Friday, Harlan offers to sell Lily his motorcycle for $1000. When Lily hesitates, Harlan tells her to take her time deciding, promising her he will give her the weekend to make up her mind. On Saturday, Harlan runs into Lily at the mall and informs her he has sold the bike to Angie instead. What recourse does Lily have?

Sam owed Joe $6000 due January 12, 2017. On January 1st, Joe said he'd take $5000 in full satisfaction of the debt if Sam paid him $5000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1000 he (Joe) was legally owed. Which of the following is true?

Why is the case of Dickinson v. Dodds important?

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?

For the postbox rule to apply, the offer must be made by mail.

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

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?

Mr. Goode, a neighbour of your parents, offered to sell you his house for $400,000, a bit below market value. You are definitely interested but would like to see if your employment contract will be renewed and want to check about financing. Mr. Goode says that he'll hold the offer open for you until May 1st. On these facts, which of the following is False?

Harry saw Joe in his classic Buick at a local drive-in restaurant and told Joe that he'd like to buy the car. He offered him $15,000. Joe said he had to think about it and that he'd let Harry know. Two days later, Joe decided that he needed the money and couldn't afford to keep the car. He wrote Harry a letter accepting his offer and mailed it that afternoon. The next day, Harry phoned and told Joe he'd changed his mind and that he needed the money for something else. Joe told him about the letter, and in fact Harry received the letter that day after his phone conversation with Joe. Joe insisted on going through with the deal. Explain the legal liability of the parties.

Berman made a documentary on the life of musician Artie Shaw. Shaw's representative was cooperative and gave her permission to use certain songs if she received proper permission from the copyright holders. The cost of the film was funded by her own savings, a private investor, the Canada Council, the Ontario Arts Council, and deferred salaries and material costs. In March of 1987, the film won an Academy Award as the best feature documentary for 1986. In November of 1987, Shaw's lawyer contacted Berman's lawyer: "... This letter states that Artie Shaw has a 35% profit participation in the motion picture... ." Which of the following accurately sets out the legal position of the parties?

A contract is a single promise, made by one person to another, enforceable in court.

If an offeror makes an offer that states, "This offer to be open until noon tomorrow," which of the following does not, in law, end the offer?

A formal contract is one that is signed and sealed.

The promise to make a charitable donation is not enforceable because it is a one-sided promise, even if the charity makes a commitment in return-such as a promise to name a building after the donor, or to use the money in a certain way-it has made a commitment.

With regard only to the requirement of consideration, which one of the following would be a binding contract?

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

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?

When is an offer incapable of being revoked?

To what does a "standard form contract" refer?

There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense, the promisor may be liable for failing to live up to that promise. What is this principle known as?