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

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary. We'll give you a StarSystem tablet/laptop with a Roland PR-1011 wi-fi printer for only $1299!!! Pick it up today." This is an example of which of the following?

Which of the following is not an example of a contract?

List the five ingredients necessary to form a contract.

What is an interim agreement?

When the postbox rule applies, the place of mailing of the acceptance may determine the place of the contract.

Canada's Uniform Electronic Commerce Act creates rights and obligations with respect to electronic commerce transactions within Canada.

The courts will use quantum meruit to determine what should be paid when a person providing services is not allowed to finish by a breaching party.

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000, due on February 25, 2017. The company is having difficulties and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements is False?

Which of the following could not be used as consideration?

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

Explain the nature of the postbox rule.

Distinguish between a formal and a simple contract.

A person is required to honour a gratuitous promise if made under seal.

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?

All of the essential terms of a contract must be clearly specified.

The existence of a seal eliminates the need for the elements of a valid contract.

Indicate the correct statement about consideration.

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.)

"For a contract to be binding, both parties must have a clear understanding of all the terms of that agreement." Discuss the accuracy of that statement.

Mary bought a new computer and advertised her old computer for $1500. Mr. Jones offered to pay $1000. Mary said no, she wanted $1500. Mr. Jones offered $1250. Mary rejected that and said she wanted $1500, but then said to him, "I withdraw my offer, I've decided to give it to a school and apply for the tax benefit." Mr. Jones said, "All right, I'll accept your offer of $1500." Which of the following is true?