Exam 6: The Elements of a Contractconsensus and Consideration

Anmool verbally agreed to build a deck for Nikki for $1000 by the September 15,in time for a lavish backyard barbecue she was planning.On September 13,Nikki became concerned at Anmool's lack of progress.Anmool told Nikki he would complete the deck on time,for an additional $200.Nikki agreed and Anmool completed the deck on time.Which of the following is correct?

Mary bought a new Macintosh computer and advertised her old computer system for $1500.Mr.Jones offered to pay $1000.Mary said no,she wanted $1500.Mr.Jones offered $1250.Mary rejected that and said she wanted $1500 but then said to him,"I withdraw my offer,I've decided to give it to school and apply for the tax benefit." Mr.Jones said,"All right,I'll accept your offer of $1500." Which of the following is true?

There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense,the promisor may be liable for failing to live up to that promise.What is this principle known as?

Indicate which of the following is the correct statement about the effect of promissory estoppel on a promisor.

If the postbox rule applies,a letter of revocation takes effect at the time of mailing.

If an offeror makes an offer that states,"This offer to be open until noon tomorrow," which of the following does not,in law,end the offer?

The courts will use ___________ to determine how much should be paid when a person providing the services is not allowed,by a breaching party,to finish the job.

If a person agrees to sell someone a brand new Cadillac for $100,this becomes a valid,binding contract.

A person is required to honour a gratuitous promise if made under seal.

Joe,a university student,parked his car near Harry's garage and went away to attend classes.Harry had noticed that there was glass on the street when he came to work that morning and was not surprised when he saw that several of the students' cars parked in that location subsequently had flat tires.He went around when he had time during the day,to each of those cars,fixed the tires and put a bill on each vehicle charging $15 for the service.Joe had come back during the day and noticed his flat tire,and when he came back that evening was grateful that it had been fixed.He went over to the garage to thank Harry and told him that he would be happy to pay the $15,but he couldn't do it until next week.In fact,he failed to pay the money,and Harry sued him for breach of contract.Explain the likely outcome.

Joe was a contractor and hired subtrades to help build his houses.Sam was a framer and had agreed to frame four houses for Joe for a set price.Joe was to supply the materials.After two houses were completed,Joe's suppliers increased the cost of lumber,and Joe told Sam that he could no longer pay him the amount that they'd agreed.Sam agreed to take 15 percent less for the other two jobs,which were then completed.During this time,regular payments were made from Joe to Sam,but the total amount received was 15 percent lower than the originally agreed on price for the last two jobs.Sam sued Joe for the original contract price,claiming that he'd received no consideration for his agreement to take less for the last two jobs.Explain what defences may be available to Joe under these circumstances and his likelihood of success.

Mr.Goode,a neighbour of your parents,offered to sell you his house for $200 000,a bit below market value.You are definitely interested but would like to see if your employment contract will be renewed and to check about financing.Mr.Goode says that he'll hold the offer open for you until May 1,2011.On these facts,which of the following is false?

What would be the result if a police officer arrived at the scene of crime in progress and demanded money from the victim to arrest the offender?

With regard only to the requirement of consideration,which one of the following would be a binding contract?

Distinguish between a bilateral and a unilateral contract.

A contract with fixed terms prepared by a business is known as ________.

Only the person or group to whom an offer is made can accept it.

What is a gratuitous promise?

Even though a person promises to hold an offer open for a specified period of time,the offeror can revoke that offer before that time if he feels like it.

Joe offered to sell Harry his car for $500,but Harry said he needed some time to think about it.A couple of days later,Harry phoned back saying that he'd give Joe $450 for the car.Joe refused to take this.Then Harry said,"All right,I'll accept your offer for $500." Joe said that he'd changed his mind and refused to go through with the deal.Harry sued.Explain Joe's legal liability.