Exam 6: The Elements of a Contractconsensus and Consideration

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.

When you pay for an option,this prevents a person from revoking his offer before the expiration of the specified time.

Joe drove his car into Sam's garage to have some repair work done on the motor.He told Sam to fix the carburetor.Sam worked on it most of the afternoon and found he had to rebuild the carburetor.He presented Joe with a bill for $250 when he returned.Joe refused to pay,saying that he had taken a law course and knew that,because they didn't agree to a specific consideration ahead of time,he was not bound in contract.Was he correct? Explain.

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 22,2011." If the court held that this subject to clause was so vague that "the entire contract was void for uncertainty," this would mean that

Discuss the requirement of consideration and its role and value in the formation of contracts.In your answer,make sure to deal with the issue of fairness in the bargaining process.

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

Martin offered to buy the property for $200 000,"offer to remain open until 5:00 p.m.on Thursday,January 21,2011." Which one of the following situations will not cause the offer to end?

Sarah wanted an antique lamp for the bedroom.While in a second-hand shop,she saw a lamp that she really wanted marked $100.She offered the owner $75 for it.He said "I'll take $95." She answered "$80!" He said,"Lady,you're pushing me a bit,aren't you? I'll take $90,that's it." She said "OK I'll pay $90 if you throw in this old 'Vote-for-Trudeau' button." He said,"Forget it,lady,my shop is closed," and asked her to leave.She said,"OK,I accept your offer of $95." He made no response.If she sues for breach of contract,which of the following is true?

What is an interim agreement?

Which one of the following is enforceable?

Why is an understanding of contract law important for a businessperson?

Under the common law,a creditor who agrees,after a $9000 debt becomes due,to take $6000 from the debtor as full payment,has received ____________ for the reduction in the debt.

In Lanca Contracting Ltd.v.Brant (County)Board of Education,what was the issue facing the Court and what did the Court decide?

A letter of revocation takes effect when received by the offeree.

Which of the following statements is correct with respect to the law of consideration?

George contracted with Bob to have a racing bike modified for him to be delivered on February 20,2011,for a race on February 22.The price for the modification was agreed on-$100.About February 10,George became nervous about the bike being finished on time and went to see Bob.Bob said that he was very busy,but if he really wanted to be sure that it would be finished on time,George would have to pay him an extra $25 so he could pay his employees overtime.George agreed and Bob completed the modifications as requested,on time.How much does George legally owe?

Explain the principle of promissory estoppel and how it relates to the requirement of consideration in contract law.In your answer,explain any limitations on its availability.

"A good example of an offer is goods placed on the shelves in a self-service merchandising situation,so long as they are clearly marked in price." Explain the accuracy of that statement.

Which of the following is correct with respect to the operation of the postbox rule?

The decision in Zynik Capital Corp.v.Faris confirms