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

With respect to the online contracts, which of the following statements is true?

Bob in Burnaby called Ed in Toronto and offered to sell him 40 kilograms of smoked salmon at $15 per kilogram. He requested that Ed phone him back by noon the next day. That way, Bob could offer it to someone else if Ed wasn't interested. Instead of phoning, Ed sent a letter of acceptance, in which he said that he would have his agent pick up the fish. On these facts, which of the following is False?

An agreement for the purchase and sale of property included the following words: "Subject to the purchaser obtaining satisfactory financing by 5 p.m. on Friday, February 22, 2016." If the court held that this subject-to clause was so vague that "the entire contract was void for uncertainty," this would mean that

If a business promises to pay all of its employees $500 to quit smoking, such an arrangement is a(n)

What is promissory estoppel?

Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt, and has actually received the lesser sum, the creditor is not bound by the agreement and can sue for the difference.

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.

An offer will end when the subject matter of the offer is sold to someone else.

Joe offered to sell Harry his car for $500. Harry responded by saying, "I accept, providing you install a new radio in that car." Explain the legal relationship between the two parties.

Which of the following is an ingredient necessary to form a contract?

X contracted with Z. X promised to pay $500 and Z promised to build a cabinet to hold X's fine china. The essential terms included the type and quality of the wood, the dimensions, and the date of completion-February 13. The work went more easily than expected and Z said to X, "If you pay me another $85, I will have this finished and be out of here by February 10." X agreed. If the cabinet was done to specifications by the 10th, but X refused to pay anything, Z would be entitled in law to

Hitting the "I Accept" button on a website is equivalent to an acceptance of the seller's offer.

Mo drove his car to a shopping mall and parked it there to attend a movie. The place where he parked was designated as a one-hour parking space on a sign at the entrance where Mo drove in. There were many similar signs around the shopping mall stating that people were parking their cars at their own risk. This particular sign said that the time limit for parking there was one hour, and as a term of the contract anyone parking over this one-hour limit would have to pay a fee of $60. When Mo got out of the movie, he found a ticket on his car (a demand for payment of the $60). He refused to pay and was sued. What would be Mo's defence in these circumstances?

Only the essential terms of a contract must be set out in the offer.

The postbox rule makes it clear that, when people choose to communicate by mail, they take the risk of delay or loss, and the acceptance as a result will be binding only when or if received.

Which of the following would best satisfy the requirements for a good legal offer?

Distinguish between an offer and an invitation to treat.

Quantum meruit is a benefit or a detriment flowing between the parties to an agreement as the result of the striking of a bargain.

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?

What is a "subject-to clause"?