Question 1

An offer, that is not an option contract, is always automatically revoked if either the offeror or the offeree dies before acceptance.

Accepted Answer

A) True 
 B)False

Question 2

Under the normal tendering process, a party that submits a bid may have obligations under both Contract A and Contract b.

Accepted Answer

A) True 
 B)False

Question 3

Cindy calls David to accept his offer to trim her hedges in exchange for a haircut.Cindy is described as the

Accepted Answer

A) invitee. 
B) contracting party. 
C) offeree. 
D) offeror. 
E) proposer. 
A) invitee. 
B) contracting party. 
C) offeree. 
D) offeror. 
E) proposer.

Question 4

As Bennie entered The Big Table restaurant, he noticed a sign that said "All-U-Can-Eat-For One Reasonable Price." Because the restaurant was busy, and because the staff members were all busy up with other customers, Bennie found a table for himself and then began eating from the self-serve buffet.After finishing his meal, he paid an appropriate amount to the cashier and left the building.Not a word had been spoken between Bennie and the store's employees during the entire episode.Which of the following statements is most likely to be TRUE?

Accepted Answer

A) While he undoubtedly was required to pay for his meal, the lack of communication means that Bennie's obligation to pay could not have arisen within the law of contract. 
B) Assuming that the general rules apply, no contract was formed until Bennie paid for his meal. 
C) If a contract existed between Bennie and The Big Table, it changed from being a unilateral contract into a bilateral contract as soon as Bennie paid for the meal. 
D) If a court is required to decide how much Bennie had to pay for his meal, it will rely on the concept of quantum meruit. 
E) Give the lack of communication between the parties, the contract that was created between the parties must have been unilateral rather than bilateral. 
A) While he undoubtedly was required to pay for his meal, the lack of communication means that Bennie's obligation to pay could not have arisen within the law of contract. 
B) Assuming that the general rules apply, no contract was formed until Bennie paid for his meal. 
C) If a contract existed between Bennie and The Big Table, it changed from being a unilateral contract into a bilateral contract as soon as Bennie paid for the meal. 
D) If a court is required to decide how much Bennie had to pay for his meal, it will rely on the concept of quantum meruit. 
E) Give the lack of communication between the parties, the contract that was created between the parties must have been unilateral rather than bilateral.

Question 5

The case of Carlill v Carbolic Smoke Ball Co is best known for dealing with the issue of

Accepted Answer

A) tenders. 
B) counter-offers. 
C) unilateral contracts. 
D) options. 
E) insanity. 
A) tenders. 
B) counter-offers. 
C) unilateral contracts. 
D) options. 
E) insanity.

Question 6

How is the concept of a meeting of the minds related to the concepts of offer and acceptance? Illustrate your answer by reference to the phenomenon of a cross-offer.

Accepted Answer

A contract cannot be formed unless there

Question 7

Gordon sends a letter to Thomas that says, "I will buy your diesel engine for $7000." At exactly the same time, Thomas sends a letter to Gordon that says, "I will sell my diesel engine to you for $7000." Which of the following statements is TRUE?

Accepted Answer

A) This situation is described as a "cross-acceptance." 
B) This situation involves a meeting of the minds. 
C) Both letters respond to an offer. 
D) This situation creates a bilateral contract. 
E) Each letter contains an offer, but neither contains an acceptance. 
A) This situation is described as a "cross-acceptance." 
B) This situation involves a meeting of the minds. 
C) Both letters respond to an offer. 
D) This situation creates a bilateral contract. 
E) Each letter contains an offer, but neither contains an acceptance.

Question 8

The Town of Oxbridge wants to build a new arts centre, but it is not sure which construction company it should hire for the job.Which type of action is the town most likely to make?

Accepted Answer

A) a call for tenders 
B) an auction 
C) an option 
D) an irrevocable bid 
E) a request for invitations to treat 
A) a call for tenders 
B) an auction 
C) an option 
D) an irrevocable bid 
E) a request for invitations to treat

Question 9

In early March, Mathilde offered to rent her cottage to Tom for the first two weeks of July at a price of $1200.Mathilde did not impose any restrictions on acceptance.Tom did not yet know when his vacation was scheduled, so he did not immediately respond to Mathilde's offer.At the end of June, Tom learned that he was entitled to vacation during the first two weeks of July.He therefore arrived at the cottage on July 1st and told Mathilde for the first time that he was accepting her offer.Which of the following statements is most likely TRUE?

Accepted Answer

A) Tom has the right to stay at the cottage because he accepted Mathilde's offer by silence. 
B) Tom has the right to stay at the cottage because he accepted Mathilde's offer by conduct. 
C) Tom does not have the right to stay at the cottage because Mathilde's offer lapsed after being open for acceptance for a reasonable length of time. 
D) Tom has the right to stay at the cottage because Mathilde created an enforceable option when she made an offer without any restrictions on acceptance 
E) Tom has the right to stay at the cottage because Mathilde's offer remained open for acceptance until she revoked it, or until Tom either accepted it or rejected it. 
A) Tom has the right to stay at the cottage because he accepted Mathilde's offer by silence. 
B) Tom has the right to stay at the cottage because he accepted Mathilde's offer by conduct. 
C) Tom does not have the right to stay at the cottage because Mathilde's offer lapsed after being open for acceptance for a reasonable length of time. 
D) Tom has the right to stay at the cottage because Mathilde created an enforceable option when she made an offer without any restrictions on acceptance 
E) Tom has the right to stay at the cottage because Mathilde's offer remained open for acceptance until she revoked it, or until Tom either accepted it or rejected it.

Question 10

You have developed a business proposal called the Law Book Club.Your intention is to send books to club members on a monthly basis.Under the proposal, each member would then be charged a price for the book unless they specifically indicated, within a one-week period, that they did not wish to purchase the selection.Discuss that proposal in terms of the rules regarding the acceptance of offers.

Accepted Answer

The question raises the issue of silence

Question 11

By submitting a tender, a party normally

Accepted Answer

A) creates an enforceable contract, called an option, to create another contract in the future. 
B) prevents the other party from revoking its bid. 
C) accepts an offer to enter into a contract for services. 
D) creates an invitation to treat. 
E) accepts an offer to enter into a fair bidding process. 
A) creates an enforceable contract, called an option, to create another contract in the future. 
B) prevents the other party from revoking its bid. 
C) accepts an offer to enter into a contract for services. 
D) creates an invitation to treat. 
E) accepts an offer to enter into a fair bidding process.

Question 12

Which of the following statements is TRUE?

Accepted Answer

A) The death or insanity of either the offeror or the offeree will always prevent acceptance. 
B) An option will never come to an end by the mere lapse of time. 
C) Neither party can revive an offer once a counter offer has been made. 
D) A firm offer can be accepted any time before it is terminated. 
E) There cannot be a "meeting of the minds" if the offeror accepts the offeree's counter offer. 
A) The death or insanity of either the offeror or the offeree will always prevent acceptance. 
B) An option will never come to an end by the mere lapse of time. 
C) Neither party can revive an offer once a counter offer has been made. 
D) A firm offer can be accepted any time before it is terminated. 
E) There cannot be a "meeting of the minds" if the offeror accepts the offeree's counter offer.

Question 13

Gigagar Inc manufactures computer components.It wants to develop a new line of product, but realizes that it cannot do so without a complicated device known as a "digital phalange finger." It has tried to design that devise itself, but has failed.It therefore sent a letter to Katenben Ltd, another high-tech company, that said: "We are willing to pay $100 000 for the design of a digital phalange finger." Katenben Ltd responded by saying that it believed that it might be able to design the device.However, it also indicated that it could not guarantee its results and said that it did not want to commit itself to a potentially impossible project.Gigagar Inc then wrote back in a letter that said: "We understand your concerns.We do not require any guarantee of success.We also appreciate that, given the complexity of the project, you may decide to drop the matter after some preliminary investigations.Nevertheless, our offer stands-we will pay $100 000 if you successfully design a digital phalange finger." Katenben Ltd spent the next six months and a great deal of money trying to design the device.As it neared successful completion, however, Gigagar Inc announced that its own engineers had experienced an unexpected breakthrough and had successfully created a digital phalange finger.Gigagar Inc therefore told Katenben Ltd that its offer of $100 000 was revoked.Three days later, Katenben Ltd also successfully produced a working digital phalange finger.It now demands payment of $100 000.Is it entitled to that money? Give reasons for your answer.

Accepted Answer

Courts generally prefer bilateral contra

Question 14

If you insert a coin into a vending machine and receive a chocolate bar in exchange, have you entered into a contract? If so, is that contract unilateral or bilateral? Give reasons for your answer.

Accepted Answer

A contract has been created.The vending

Question 15

The phrase quid pro quo means

Accepted Answer

A) something for something. 
B) agreement on point. 
C) professional services. 
D) a thing of value. 
E) an intention to contract. 
A) something for something. 
B) agreement on point. 
C) professional services. 
D) a thing of value. 
E) an intention to contract.

Question 16

An offer can be revoked

Accepted Answer

A) even if it was a firm offer. 
B) if it was made under seal. 
C) within a reasonable time of acceptance. 
D) if it is contained in an option. 
E) as long as the offeror communicates that intention to a judge. 
A) even if it was a firm offer. 
B) if it was made under seal. 
C) within a reasonable time of acceptance. 
D) if it is contained in an option. 
E) as long as the offeror communicates that intention to a judge.

Question 17

In late April, Harper Corp placed an advertisement in a newspaper that said: "We cater parties.Up to 150 people for only $3000.No hidden fees or costs." The manager of Martin Inc telephoned Harper and left a voice message that said, "We are calling to place an order to have a party for 150 people on the first of June." The next day, the manager of Harper called Martin and explained that, due to a scheduling conflict, it could not stage a party on the first of June.Martin now says that a contract had been created and that Harper has breached that agreement.Which of the following statements is most likely to be TRUE?

Accepted Answer

A) Because a contract cannot be created between corporations, Harper Corp cannot be held liable to Martin Inc. 
B) A contract was created between the parties as soon as Martin left its message on Harper's answering machine, regardless of when Harper listened to that message. 
C) Because an advertisement is generally presumed to be an invitation to treat, Martin's telephone message was not a contractual acceptance. 
D) In classifying the nature and effect of Martin's telephone message, a judge would focus exclusively on the intention that Martin had at the time that he called. 
E) If it did not actually have a scheduling conflict, Harper would be obligated to satisfy Martin's order. 
A) Because a contract cannot be created between corporations, Harper Corp cannot be held liable to Martin Inc. 
B) A contract was created between the parties as soon as Martin left its message on Harper's answering machine, regardless of when Harper listened to that message. 
C) Because an advertisement is generally presumed to be an invitation to treat, Martin's telephone message was not a contractual acceptance. 
D) In classifying the nature and effect of Martin's telephone message, a judge would focus exclusively on the intention that Martin had at the time that he called. 
E) If it did not actually have a scheduling conflict, Harper would be obligated to satisfy Martin's order.

Question 18

Jose and Mei entered into what appeared to be a contract for the sale of an antique automobile.Jose agreed to pay the purchase price and Mei agreed to deliver the car to Jose's garage.Secretly, however, Mei planned to keep the car for herself.Will a court enforce the agreement?

Accepted Answer

A) A court will not enforce the agreement because the existence of Mei's secret plan meant that the parties did not really agree to the same thing. 
B) A court will not enforce the agreement because Mei expected to keep the automobile and contract law tries to protect reasonable expectations. 
C) A court will enforce the agreement because a reasonable person would have concluded that the parties entered into an exchange of promises for value. 
D) A court will enforce the agreement because Mei behaved badly and the court wants to punish that type of behaviour. 
E) A court will not enforce the agreement because business people must be able to rely on outward appearances. 
A) A court will not enforce the agreement because the existence of Mei's secret plan meant that the parties did not really agree to the same thing. 
B) A court will not enforce the agreement because Mei expected to keep the automobile and contract law tries to protect reasonable expectations. 
C) A court will enforce the agreement because a reasonable person would have concluded that the parties entered into an exchange of promises for value. 
D) A court will enforce the agreement because Mei behaved badly and the court wants to punish that type of behaviour. 
E) A court will not enforce the agreement because business people must be able to rely on outward appearances.

Question 19

Acme Corp is a widget manufacturer that carries on business in Edmonton.Until recently, it sold its products only within the province of Alberta.However, it now wants to sell to customers in Manitoba as well.It is concerned, however, about the effect of the Alberta Contracts Enforcement Act.That statute says that only specially licenced companies are entitled to sell widgets under "contracts that are made within the province of Alberta." Acme Corp is not specially licenced.The statute does not, however, affect contracts that are created outside of Alberta.Bearing in mind the general rules regarding offers and acceptances, suggest ways in which Acme Corp can go ahead with its proposal without violating the Contracts Enforcement Act.

Accepted Answer

There are at least two ways in which Acm

Question 20

Lori offers to sell her season pass to the ballet for $200.Her co-worker, Alan, says that he will buy the pass for $150.Alan has provided

Accepted Answer

A) an option. 
B) a counter offer. 
C) a firm offer. 
D) a tender. 
E) a trust. 
A) an option. 
B) a counter offer. 
C) a firm offer. 
D) a tender. 
E) a trust.

Exam 7: The Nature and Creation of Contracts

An offer, that is not an option contract, is always automatically revoked if either the offeror or the offeree dies before acceptance.

Under the normal tendering process, a party that submits a bid may have obligations under both Contract A and Contract b.

Cindy calls David to accept his offer to trim her hedges in exchange for a haircut.Cindy is described as the

The case of Carlill v Carbolic Smoke Ball Co is best known for dealing with the issue of

How is the concept of a meeting of the minds related to the concepts of offer and acceptance? Illustrate your answer by reference to the phenomenon of a cross-offer.

Gordon sends a letter to Thomas that says, "I will buy your diesel engine for $7000." At exactly the same time, Thomas sends a letter to Gordon that says, "I will sell my diesel engine to you for $7000." Which of the following statements is TRUE?

The Town of Oxbridge wants to build a new arts centre, but it is not sure which construction company it should hire for the job.Which type of action is the town most likely to make?

By submitting a tender, a party normally

Which of the following statements is TRUE?

If you insert a coin into a vending machine and receive a chocolate bar in exchange, have you entered into a contract? If so, is that contract unilateral or bilateral? Give reasons for your answer.

The phrase quid pro quo means

An offer can be revoked

Jose and Mei entered into what appeared to be a contract for the sale of an antique automobile.Jose agreed to pay the purchase price and Mei agreed to deliver the car to Jose's garage.Secretly, however, Mei planned to keep the car for herself.Will a court enforce the agreement?

Lori offers to sell her season pass to the ballet for $200.Her co-worker, Alan, says that he will buy the pass for $150.Alan has provided

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

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Government Regulation of Business

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