Exam 7: The Nature and Creation of Contracts

Mysty offered to sell her car to Tim for $15 000.Tim faxed a letter to her that said,"Consider it sold.I'll bring the money to you next Monday when I pick up the vehicle.Of course,for that price,I'll want you to install a new stereo in it." Tim did not hear anything more from Mysty,but he arrived at her door the following Monday with $15 000 in cash.He was delighted to find that a new stereo had been installed in the car,but disappointed when Mysty refused to accept his money or hand over the vehicle.Mysty is required to do so because there was a valid offer and acceptance.

Ronan asked his friends,Siobhan and Jeff,to help him move,and said he would give them each $10.Siobhan tells him maybe and Jeff tells him he will be there.Which of the following is true?

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

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.

Wessam offers to sell Ivan a bicycle for $100.Ivan asks to think about it for a couple days.The next day,Wessam tells him that she has increased the price to $150.Wessam has

List five ways in which an offer can be terminated.

The phrase quid pro quo means

As Bennie entered The Big Table restaurant,he noticed a sign that said "All-U-Can-Eat-At Our Reasonable Price." Because the restaurant was busy,and because the staff was all tied 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.Bennie had not spoken,or been spoken to,at any point.Which of the following statements is TRUE?

Morris posted a notice promising to pay a $50 reward to anyone who found his lost cat.Morris saw Edna,his neighbour,and drew her attention to the notice.She expressed sympathy,but said that she did not have time to help because she was rushing off to work.When she returned home early that afternoon,however,she went to Morris's house to tell him that she would look for the cat.Although he was not at home,she searched the area,found the animal,and returned it to his house.Morris now refuses to pay Edna the $50.A court would most likely say that Edna can

Which of the following statements is TRUE?

Which of the following statements is TRUE?

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 TRUE?

As a general rule,the courts will not enforce an agreement that is not in writing.

Quality Kitchens Inc operates a store that sells kitchen utensils and gadgets.In an attempt to increase sales,the store ran an advertisement in a newspaper that featured Juicy Brand Blenders for $49.99.Martha rushed to the store with the intention of buying a blender.When she arrived however,she was told that while there were no such blenders in stock,the store did have several Swirl Brand Blenders to sell for $99.99 each.After a bit of investigation,Martha discovered that the store knew that it never had any Juicy Brand Blenders,and that it was simply hoping that shoppers would buy the Swirl Brand Blenders once they got inside the store.Which of the following statements is TRUE?

On March 1st,Janet,who lives in Edmonton,sent a letter to Tad,who lives in Toronto.The letter said: "I want to buy your car.I'll pay $10 000 for it.If I don't hear anything more from you,I'll assume that I can drive the car away when I'm in Toronto at the beginning of April." When he received that letter on March 5th,Tad phoned Janet.She was not home,but he left a message on her answering machine that said: "I'm willing to sell my car to you,but only if you promise to pay $15 000.I need your answer sent by mail within one week." Janet listened to that message on March 6.That same day,she sent a second letter to Tad that said,"I received your message.I'll pay $15 000,but not one cent more." On March 10,Tad decided that he did not want to sell the car after all.He immediately left a message on Janet's answering machine that said: "The deal is off.I'm keeping my car." An hour later,he received Janet's second letter.Which of the following statements is most likely TRUE?

On June 1,Sasha agreed to sell a car to Elaine for $10 000.Under the terms of that agreement,she was required to pay the price to him on June 10 and he was required to transfer ownership in the car to her on the same day.Once Sasha and Elaine do so,their contractual relationship will be terminated for all purposes.

A battle of the forms usually occurs when

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.

The "master of the offer"

Which of the following statements is TRUE?