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

Although the contract called for the delivery of three manuals, the writer had put so much effort into the first two that the buyer agreed to pay the whole contract price, $3000, for the two instead of the three manuals. Which of the following stops the buyer from later suing the writer for breach of contract and demanding the completion of the third manual?

Joe drove his car into Sam's garage to have some repair work done. He told Sam to fix the carburetor. Sam worked on it most of the afternoon and found he had to rebuild the carburetor. He presented Joe with a bill for $250 when he returned. Joe refused to pay, saying that he had taken a law course and knew that, because they didn't agree to a specific consideration ahead of time, he was not bound in contract. Was he correct? Explain.

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

Why is an understanding of contract law important for a business person?

Explain any limitations on the availability of promissory estoppel.

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.

An employer's promise to pay a bonus in recognition of good work already performed by the employee would be binding.

What is "quantum meruit"?

Deceitful practices and fraud are ongoing concerns for those transacting business on the Internet. Pat has recently been the victim of such a scam. He gets into a heated discussion with his friend over the application of current consumer protection laws to online transactions. Which of the following statements is correct?

"A good example of an offer is goods placed on the shelves in a self-service merchandising situation, so long as they are clearly marked in price." Explain the accuracy of that statement.

Which of the following shows accurate use of the doctrine of promissory (equitable) estoppel?

If a person offers to hold his offer open for a period of time, he can still revoke it before that time if he changes his mind.

Discuss the elements of a contract required for electronic commerce transactions.

Indicate how consumers are protected in standard form contract situations.

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

Joe owed Sam $500. Two days before the money was due, he came to Sam and told him he couldn't pay the $500, but if Sam would accept $300 right then, in full satisfaction of the debt, he would pay him that amount. Sam agreed, then later sued for the other $200. Will he win?

Which of the following statements correctly illustrates a legal signature for online commercial transactions?

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.

Electronic signatures provide a digital certificate that authenticates the identity of a party to the contract.

The postbox rule applies when which of the following means of communication is used?