Question 1

The phrase consensus ad idem means

Accepted Answer

A) one idea in two minds. 
B) value for the agreement. 
C) agreement on that previously mentioned. 
D) offer of agreement. 
E) less than the value of that. 
A) one idea in two minds. 
B) value for the agreement. 
C) agreement on that previously mentioned. 
D) offer of agreement. 
E) less than the value of that.

Question 2

An advertisement in a newspaper is usually considered an offer if it contains a clear description of the product and a specific price.

Accepted Answer

A) True 
 B)False

Question 3

From a risk management perspective, explain why it may be better for a business to use an invitation to treat, rather than an offer, when seeking someone to buy its product.

Accepted Answer

The danger occurs if the business has a

Question 4

ABC Inc and XYZ Ltd entered into a written agreement for the purchase and sale of paper products.That agreement contained a clause that said: "This arrangement is not entered into, nor is this memorandum written, as a formal or legal agreement, and shall not be subject to the jurisdiction of the Law Courts or in any other way be enforceable by law." ABC Inc wants the paper products, but XYZ Ltd refuses to deliver them.Which of the following statements is most likely TRUE?

Accepted Answer

A) The agreement is legally enforceable because the clause in question is inconsistent with the rules of offer and acceptance. 
B) The agreement is legally unenforceable because the clause in question was an invitation to treat, rather than an offer. 
C) The agreement is legally enforceable because the clause in question demonstrates that the parties had a meeting of the minds. 
D) The agreement is legally unenforceable because the parties did not intend to create legal relations. 
E) The agreement is legally enforceable because an intention to create legal relations is irrebuttably presumed when two businesses become involved in a commercial arrangement. 
A) The agreement is legally enforceable because the clause in question is inconsistent with the rules of offer and acceptance. 
B) The agreement is legally unenforceable because the clause in question was an invitation to treat, rather than an offer. 
C) The agreement is legally enforceable because the clause in question demonstrates that the parties had a meeting of the minds. 
D) The agreement is legally unenforceable because the parties did not intend to create legal relations. 
E) The agreement is legally enforceable because an intention to create legal relations is irrebuttably presumed when two businesses become involved in a commercial arrangement.

Question 5

A battle of the forms usually occurs when

Accepted Answer

A) each party claims to have entered into a contract on the basis of its own standard form contract, but the two standard form contracts have the same terms. 
B) the offeree signs two copies of a written offer, but the two documents do not contain the same terms. 
C) each party insists upon using the offeror's standard form contract for every transaction. 
D) each party claims to have entered into a contract on the basis of its own standard form contract, but those two documents do not have the same terms. 
E) each party insists upon using the offeree's standard form contract for every transaction. 
A) each party claims to have entered into a contract on the basis of its own standard form contract, but the two standard form contracts have the same terms. 
B) the offeree signs two copies of a written offer, but the two documents do not contain the same terms. 
C) each party insists upon using the offeror's standard form contract for every transaction. 
D) each party claims to have entered into a contract on the basis of its own standard form contract, but those two documents do not have the same terms. 
E) each party insists upon using the offeree's standard form contract for every transaction.

Question 6

An option is valid only if it is placed under seal.

Accepted Answer

A) True 
 B)False

Question 7

How does the death of either the offeror or the offeree affect an offer? Provide examples to illustrate your answer.

Accepted Answer

An offer is usually automatically revoke

Question 8

In a normal tendering process, is Contract A a unilateral contract or a bilateral contract? Is Contract B a unilateral contract or a bilateral contract? Give reasons for your answer.

Accepted Answer

Contract A is a bilateral contract.Altho

Question 9

Ben has sued Alison for breach of contract.Alison denies that he breached a contract.In fact, she denies that she ever even created a contract.Nevertheless, even if she persuades the court that she never truly intended, on a subjective basis, to enter into an enforceable agreement, a contract may have been created.

Accepted Answer

A) True 
 B)False

Question 10

Simon believed that he might want to buy shares in Omega Inc from Melinda in the future.Each Omega share was worth $10 on June 1.On that same day, Simon paid Melinda $1000 in exchange for an option to purchase 5000 Omega shares, at $10 per share, on or before October 1.Which of the following statements is TRUE?

Accepted Answer

A) If the market value of the shares immediately dropped to $5 each and stayed there throughout the option period, Simon would be obligated to buy 5000 shares from Melinda at double their actual value. 
B) If the market value of the shares immediately increased to $20 each and stayed there throughout the option period, Melinda might be obligated to sell 5000 shares to Simon at half of their market value. 
C) If the market value of the shares immediately increased to $20 each, Melinda could revoke her offer to sell the shares any time before Simon accepted it. 
D) The option would not create any enforceable obligations unless and until Simon agreed to buy the shares. 
E) Simon will be entitled to enforce the option only if Melinda cannot find any other potential buyers for the Omega shares. 
A) If the market value of the shares immediately dropped to $5 each and stayed there throughout the option period, Simon would be obligated to buy 5000 shares from Melinda at double their actual value. 
B) If the market value of the shares immediately increased to $20 each and stayed there throughout the option period, Melinda might be obligated to sell 5000 shares to Simon at half of their market value. 
C) If the market value of the shares immediately increased to $20 each, Melinda could revoke her offer to sell the shares any time before Simon accepted it. 
D) The option would not create any enforceable obligations unless and until Simon agreed to buy the shares. 
E) Simon will be entitled to enforce the option only if Melinda cannot find any other potential buyers for the Omega shares.

Question 11

Bentley sent a letter to Helene that said: "I'll sell 5000 widgets to you for $50 000.This offer is open for acceptance until August 10." As soon as she received that letter on August 1, Helene replied with a letter that said: "That sounds like a good deal.I will bring the money to your office on August 15.I'll also collect the widgets at that time." When Helene arrived at Bentley's office on August 15, however, he refused to accept the money or hand over the widgets.He explained that he had not yet received her letter.He also said that he was no longer willing to do business with her.Helene's letter finally reached Bentley on August 20.By that time, the market value of the widgets had increased to $75 000.Applying the general rules for communication of acceptance, which statement is most likely TRUE?

Accepted Answer

A) Bentley revoked his offer on August 15. 
B) A court would refuse to recognize a contract because it would be unfair to require Bentley to sell $75 000 worth of widgets for $50 000. 
C) A contract was created on August 1. 
D) Bentley's offer was terminated by lapse of time. 
E) A contract was created on August 20. 
A) Bentley revoked his offer on August 15. 
B) A court would refuse to recognize a contract because it would be unfair to require Bentley to sell $75 000 worth of widgets for $50 000. 
C) A contract was created on August 1. 
D) Bentley's offer was terminated by lapse of time. 
E) A contract was created on August 20.

Question 12

The three elements needed to create most contracts are best described as

Accepted Answer

A) offer and acceptance, consideration, and a written agreement. 
B) an intention to create legal relations, offer and acceptance, and consideration. 
C) an intention to create legal relations, an exchange of value, and consideration. 
D) offer and acceptance, an invitation to treat, and communication of the offer. 
E) quid pro quo, pacta sunt servanada, and consensus ad idem. 
A) offer and acceptance, consideration, and a written agreement. 
B) an intention to create legal relations, offer and acceptance, and consideration. 
C) an intention to create legal relations, an exchange of value, and consideration. 
D) offer and acceptance, an invitation to treat, and communication of the offer. 
E) quid pro quo, pacta sunt servanada, and consensus ad idem.

Question 13

Pascal recently created a new business for sewing and shipping cosplay outfits.Because he does not have a formal place of business, he communicates entirely online and he works on the costumes wherever he can find space.Although he lives in Edmonton, he advertises his services across Canada and he has fulfilled orders from every province and territory except Quebec and the Yukon.Eric Gold, who lives in Vancouver, submitted an online order for a Hello Kitty costume.Pascal received it while he was visiting a friend in Toronto.Because he was not working on any other projects at the time, Pascal finished the costume and sent it to Eric before he returned home to Edmonton.Eric is delighted with the outfit, but a dispute has arisen with regard to the price. The parties agreed on a price of "$2000 plus applicable taxes." They also agree that Pascal offered to sell the Hello Kitty costume on his website.Each of the western provinces has a statute that imposes a tax of 10% on all electronic contracts.Ontario does not have similar legislation.If the case was governed by the Uniform Electronic Commerce Act, which of the following statements would be the most likely to be TRUE?

Accepted Answer

A) Eric is not required to pay the tax because the contract was created in Toronto where Pascal read the order and created the costume. 
B) Eric is required to pay the tax because the contract was created in Vancouver where he submitted his order. 
C) Eric is required to pay the tax because the contract was created in Edmonton where Pascal habitually resides. 
D) Eric is required to pay the tax because the contract was created in Vancouver where he received the costume. 
E) Eric is not required to pay the tax because the Uniform Electronic Commerce Act is a federal statute that deems that all electronic contracts are created in Ottawa. 
A) Eric is not required to pay the tax because the contract was created in Toronto where Pascal read the order and created the costume. 
B) Eric is required to pay the tax because the contract was created in Vancouver where he submitted his order. 
C) Eric is required to pay the tax because the contract was created in Edmonton where Pascal habitually resides. 
D) Eric is required to pay the tax because the contract was created in Vancouver where he received the costume. 
E) Eric is not required to pay the tax because the Uniform Electronic Commerce Act is a federal statute that deems that all electronic contracts are created in Ottawa.

Question 14

Eric bought a house for $150 000.He paid $25 000 immediately and promised the seller that he would pay the remainder in monthly installments over the next 10 years.Eric then told his daughter, Naomi, that he would transfer the house to her if and when she paid all of the monthly payments.Naomi was reluctant to commit herself to that arrangement because she was not sure if she would always have enough money to make the payments.Eric said to her, "Well, let's see how it goes." Naomi made the monthly payments for six years.Unfortunately, she and her father then began to fight.At that point, he told her that the deal was off.Eric has offered to repay Naomi for all of the payments that she had made, but he insists that the house will always belong to him.The market value of the house has increased from $150 000 to $400000.Which of the following statements is most likely to be TRUE?

Accepted Answer

A) Eric and Naomi never had a contract because they never had an intention to create legal relations. 
B) Eric and Naomi never had a contract because he revoked his offer before she completed making the payments. 
C) Eric is required to give Naomi an opportunity to finish completing the payments, and if she does so, she is entitled to the house. 
D) Since the parties created a unilateral contract, Naomi still has an obligation to make the monthly payments. 
E) A court would not recognize a contract because no reasonable person would ever offer to sell a $400 000 house for less than half that amount. 
A) Eric and Naomi never had a contract because they never had an intention to create legal relations. 
B) Eric and Naomi never had a contract because he revoked his offer before she completed making the payments. 
C) Eric is required to give Naomi an opportunity to finish completing the payments, and if she does so, she is entitled to the house. 
D) Since the parties created a unilateral contract, Naomi still has an obligation to make the monthly payments. 
E) A court would not recognize a contract because no reasonable person would ever offer to sell a $400 000 house for less than half that amount.

Question 15

"If a contractual offer is accepted by conduct, rather than words, the parties must have a unilateral contract, rather than a bilateral contract." Discuss that statement.Use examples to prove your answer.

Accepted Answer

The statement is not correct.A bilateral

The phrase consensus ad idem means

An advertisement in a newspaper is usually considered an offer if it contains a clear description of the product and a specific price.

From a risk management perspective, explain why it may be better for a business to use an invitation to treat, rather than an offer, when seeking someone to buy its product.

A battle of the forms usually occurs when

An option is valid only if it is placed under seal.

How does the death of either the offeror or the offeree affect an offer? Provide examples to illustrate your answer.

In a normal tendering process, is Contract A a unilateral contract or a bilateral contract? Is Contract B a unilateral contract or a bilateral contract? Give reasons for your answer.

The three elements needed to create most contracts are best described as

"If a contractual offer is accepted by conduct, rather than words, the parties must have a unilateral contract, rather than a bilateral contract." Discuss that statement.Use examples to prove your answer.

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

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

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Exam 7: The Nature and Creation of Contracts

The phrase consensus ad idem means

An advertisement in a newspaper is usually considered an offer if it contains a clear description of the product and a specific price.

From a risk management perspective, explain why it may be better for a business to use an invitation to treat, rather than an offer, when seeking someone to buy its product.

A battle of the forms usually occurs when

An option is valid only if it is placed under seal.

How does the death of either the offeror or the offeree affect an offer? Provide examples to illustrate your answer.

In a normal tendering process, is Contract A a unilateral contract or a bilateral contract? Is Contract B a unilateral contract or a bilateral contract? Give reasons for your answer.

The three elements needed to create most contracts are best described as

"If a contractual offer is accepted by conduct, rather than words, the parties must have a unilateral contract, rather than a bilateral contract." Discuss that statement.Use examples to prove your answer.

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

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

Filters