Question 1

Once a person has promised to hold an offer open for a specified period of time,he cannot change his mind.

Accepted Answer

A) True 
 B)False

Question 2

If you pay $1000 for a 90-day option on property offered at $200 000,which of the following is true?

Accepted Answer

A)  You have bought a 90-day period of time within which you may or may not accept the offer of the land. 
B)  With the signing of the option agreement, you have entered into two contracts-a contract for time and another for land. 
C)  You have agreed that you will accept the offer of land within the 90-day period. 
D)  If you do not exercise the option, you can get your $1000 back. 
E)  The seller of the land can revoke the offer of the land any time before acceptance. 
A)  You have bought a 90-day period of time within which you may or may not accept the offer of the land. 
B)  With the signing of the option agreement, you have entered into two contracts-a contract for time and another for land. 
C)  You have agreed that you will accept the offer of land within the 90-day period. 
D)  If you do not exercise the option, you can get your $1000 back. 
E)  The seller of the land can revoke the offer of the land any time before acceptance.

Question 3

Only the essential terms of a contract must be set out in the offer.

Accepted Answer

A) True 
 B)False

Question 4

What did the Court decide in Entores Ltd.v.Miles Far East Corp.?

Accepted Answer

A)  Because the postbox rule is archaic, it should be abolished in its entirety. 
B)  Because mail is the most common form of communication, the postbox rule does not need to be extended to telegrams. 
C)  Because of the postbox rule, there is no need to specify a method of acceptance in contractual negotiations. 
D)  Because fax machines are becoming more popular, the Court created a new rule known as the fax rule exception. 
E)  Because telex was instantaneous, there was no need to extend the postbox rule exception to that form of communication. 
A)  Because the postbox rule is archaic, it should be abolished in its entirety. 
B)  Because mail is the most common form of communication, the postbox rule does not need to be extended to telegrams. 
C)  Because of the postbox rule, there is no need to specify a method of acceptance in contractual negotiations. 
D)  Because fax machines are becoming more popular, the Court created a new rule known as the fax rule exception. 
E)  Because telex was instantaneous, there was no need to extend the postbox rule exception to that form of communication.

Question 5

All of the essential terms of a contract must be clearly specified.

Accepted Answer

A) True 
 B)False

Question 6

What was significant about the case of R.v.Commercial Credit Corp.?

Accepted Answer

A)  It abolished the postbox rule in Canada. 
B)  It determined that the postbox rule should be extended letters of revocation as well as letters of acceptance. 
C)  It confirmed that acceptance by post is always appropriate. 
D)  It determined that consideration is unnecessary in cases where consensus has been achieved in writing. 
E)  It is one of the few cases where the postbox rule has been extended beyond communication by mail or telegram. 
A)  It abolished the postbox rule in Canada. 
B)  It determined that the postbox rule should be extended letters of revocation as well as letters of acceptance. 
C)  It confirmed that acceptance by post is always appropriate. 
D)  It determined that consideration is unnecessary in cases where consensus has been achieved in writing. 
E)  It is one of the few cases where the postbox rule has been extended beyond communication by mail or telegram.

Question 7

One of the requirements in a contract is that there be an exchange of consideration between the parties.Explain what is meant by "consideration."

Accepted Answer

Consideration is usually thought of as t

Question 8

X contracted with Z.X promised to pay $500; Z promised to build a cabinet to hold X's DVD's.The essential terms included the type and quality of the wood,the dimensions,and the date of completion-February 13,2011.The work went more easily than expected and Z said to X,"If you pay me another $85,I will have this finished and be out of here by February 10." X agreed.If the cabinet was done to specifications by the 10th,but X refused to pay anything,Z would be entitled in law to

Accepted Answer

A)  nothing. 
B)  $500. 
C)  $585. 
D)  only $85. 
E)  a "fair price." 
A)  nothing. 
B)  $500. 
C)  $585. 
D)  only $85. 
E)  a "fair price."

Question 9

Sam owed Joe $6000,due January 12,2012.On January 1,Joe said he'd take $5000 in full satisfaction of the debt if Sam paid him $5000 on January 5th instead.Sam paid on January 5th.A week later,Joe wants to sue Sam for the $1000 he (Joe)was legally owed.Which of the following is true?

Accepted Answer

A)  Joe would win because his forgiveness of the loan was gratuitous-i.e., unsupported by consideration. 
B)  Joe would win because they cannot change the original deal. 
C)  Joe would lose because of the doctrine of quantum meruit. 
D)  Joe would lose because of the rule that past consideration is no consideration. 
E)  Joe would lose because early repayment constituted consideration to support the new arrangement. 
A)  Joe would win because his forgiveness of the loan was gratuitous-i.e., unsupported by consideration. 
B)  Joe would win because they cannot change the original deal. 
C)  Joe would lose because of the doctrine of quantum meruit. 
D)  Joe would lose because of the rule that past consideration is no consideration. 
E)  Joe would lose because early repayment constituted consideration to support the new arrangement.

Question 10

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration.Assume all the other requirements for a binding contract have been met.

Accepted Answer

A)  Mr. Kooner sold a farm valued at $190 000 to his nephew for only $50 000. 
B)  Peter agreed to pay Ace Computers Ltd. $50 above the contract price if the company would have his new computer ready ten days earlier than the date specified in the original contract. 
C)  John, late for work, found his car battery was dead. He flagged down a passing truck and told the driver he would pay him $8 if he would agree to do him the favour of jump-starting the car. The driver of the truck agreed. 
D)  Len agreed to sell and Karen agreed to buy four of Len's records for "some money." 
E)  Mary promised in writing and under seal to give Planned Parenthood a donation of $100. 
A)  Mr. Kooner sold a farm valued at $190 000 to his nephew for only $50 000. 
B)  Peter agreed to pay Ace Computers Ltd. $50 above the contract price if the company would have his new computer ready ten days earlier than the date specified in the original contract. 
C)  John, late for work, found his car battery was dead. He flagged down a passing truck and told the driver he would pay him $8 if he would agree to do him the favour of jump-starting the car. The driver of the truck agreed. 
D)  Len agreed to sell and Karen agreed to buy four of Len's records for "some money." 
E)  Mary promised in writing and under seal to give Planned Parenthood a donation of $100.

Question 11

You owe Mr.Store $900 for goods received and want him to take $800 in full satisfaction of the debt.Which of the following is false?

Accepted Answer

A)  If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding. 
B)  If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100. 
C)  If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100. 
D)  If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100. 
E)  If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900. 
A)  If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding. 
B)  If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100. 
C)  If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100. 
D)  If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100. 
E)  If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900.

Question 12

In Gilbert Steel Ltd.v.University Construction Ltd.,what did the Court find on the issue of consideration?

Accepted Answer

A)  Because the Court will not look into the adequacy of consideration, a one-sided agreement is enforceable. 
B)  A one-sided agreement is, in law, a form of unilateral contract. 
C)  A one-sided agreement is not enforceable. 
D)  A one-sided agreement is only binding if its essential terms are reduced to writing. 
E)  Because commercial parties dealing at arms' length were involved, a one-sided agreement is valid. 
A)  Because the Court will not look into the adequacy of consideration, a one-sided agreement is enforceable. 
B)  A one-sided agreement is, in law, a form of unilateral contract. 
C)  A one-sided agreement is not enforceable. 
D)  A one-sided agreement is only binding if its essential terms are reduced to writing. 
E)  Because commercial parties dealing at arms' length were involved, a one-sided agreement is valid.

Question 13

When the postbox rule applies,the place of mailing of the acceptance may determine the place of the contract.

Accepted Answer

A) True 
 B)False

Question 14

Carlos visited Vancouver last summer and instead of going back to Ontario he stayed and enrolled at Simon.He needed money but didn't need things left in Ontario,including his car.In mid-December,he wrote a friend and offered to sell the car for $4000 and told him to send him a letter with his answer.His friend received the letter on January 2,checked his financial situation,and sent a letter of acceptance January 3.Meanwhile Carlos,short of cash and not hearing from his friend,sold the car to Mr.Reno on December 31.Carlos received his friend's letter January 8.Based on these facts,which of the following is true?

Accepted Answer

A)  In order for there to be a binding contract, there must be an offer and receipt of the letter. 
B)  All methods of acceptance are effective upon receipt by the offeror. 
C)  Sending an acceptance by mail was not a reasonable method of acceptance in this situation. 
D)  The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract. 
E)  The acceptance was effective before it was received, so there was a contract between Carlos and his friend. 
A)  In order for there to be a binding contract, there must be an offer and receipt of the letter. 
B)  All methods of acceptance are effective upon receipt by the offeror. 
C)  Sending an acceptance by mail was not a reasonable method of acceptance in this situation. 
D)  The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract. 
E)  The acceptance was effective before it was received, so there was a contract between Carlos and his friend.

Question 15

Four days ago,Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer-$1000! When he went to the store this afternoon and said he wanted one,they replied that they didn't have any left,nor could they get one.Based on these facts,which of the following is true?

Accepted Answer

A)  Pete could sue the store for breach of contract because he was accepting the offer in the newspaper. 
B)  The store had revoked the offer before he tried to accept. 
C)  The offer by the store had lapsed before he tried to accept. 
D)  The wording in the newspaper was merely an invitation to the public to do business, and no contract was formed. 
E)  Pete could sue for breach of an option contract. 
A)  Pete could sue the store for breach of contract because he was accepting the offer in the newspaper. 
B)  The store had revoked the offer before he tried to accept. 
C)  The offer by the store had lapsed before he tried to accept. 
D)  The wording in the newspaper was merely an invitation to the public to do business, and no contract was formed. 
E)  Pete could sue for breach of an option contract.

Question 16

Which of the following is not correct with respect to the adequacy of consideration?

Accepted Answer

A)  Must be of some value; love and affection are not enough. 
B)  Need not be present if the agreement is under seal. 
C)  Need not be fair, unless there are extenuating circumstances, i.e., insanity or fraud. 
D)  Need not be legal if both parties clearly consent. 
E)  Existing duty: a change in the contract requires new consideration. 
A)  Must be of some value; love and affection are not enough. 
B)  Need not be present if the agreement is under seal. 
C)  Need not be fair, unless there are extenuating circumstances, i.e., insanity or fraud. 
D)  Need not be legal if both parties clearly consent. 
E)  Existing duty: a change in the contract requires new consideration.

Question 17

Discuss the requirements for a valid offer,explaining both how an offer is to be communicated and how such an offer can be brought to an end.

Accepted Answer

A valid offer must contain all of the es

Question 18

Which of the following shows the use of the doctrine of promissory (equitable)estoppel?

Accepted Answer

A)  Ralph told Mary that he would give her his old boat. If he doesn't, Mary could use the doctrine to force him to do so. 
B)  If Nancy accidentally ran her car over her neighbour's bushes, she could use the doctrine as a defence. 
C)  This doctrine can be used by a plaintiff to enforce a written promise signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
D)  A defendant can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive the defendant some of his obligation. 
E)  If Ho requests services from Jones and there is no mention of price, if Ho doesn't pay Jones, this doctrine can be used to force Ho to pay a reasonable amount. 
A)  Ralph told Mary that he would give her his old boat. If he doesn't, Mary could use the doctrine to force him to do so. 
B)  If Nancy accidentally ran her car over her neighbour's bushes, she could use the doctrine as a defence. 
C)  This doctrine can be used by a plaintiff to enforce a written promise signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
D)  A defendant can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive the defendant some of his obligation. 
E)  If Ho requests services from Jones and there is no mention of price, if Ho doesn't pay Jones, this doctrine can be used to force Ho to pay a reasonable amount.

Question 19

A revocation of an offer is effective only when it has been communicated to the offeree.

Accepted Answer

A) True 
 B)False

Question 20

The postbox rule applies when which of the following means of communication is used?

Accepted Answer

A)  telephone 
B)  fax 
C)  electronic mail 
D)  mail 
E)  messenger 
A)  telephone 
B)  fax 
C)  electronic mail 
D)  mail 
E)  messenger

Once a person has promised to hold an offer open for a specified period of time,he cannot change his mind.

If you pay $1000 for a 90-day option on property offered at $200 000,which of the following is true?

Only the essential terms of a contract must be set out in the offer.

What did the Court decide in Entores Ltd.v.Miles Far East Corp.?

All of the essential terms of a contract must be clearly specified.

What was significant about the case of R.v.Commercial Credit Corp.?

One of the requirements in a contract is that there be an exchange of consideration between the parties.Explain what is meant by "consideration."

Sam owed Joe $6000,due January 12,2012.On January 1,Joe said he'd take $5000 in full satisfaction of the debt if Sam paid him $5000 on January 5th instead.Sam paid on January 5th.A week later,Joe wants to sue Sam for the $1000 he (Joe)was legally owed.Which of the following is true?

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration.Assume all the other requirements for a binding contract have been met.

You owe Mr.Store $900 for goods received and want him to take $800 in full satisfaction of the debt.Which of the following is false?

In Gilbert Steel Ltd.v.University Construction Ltd.,what did the Court find on the issue of consideration?

When the postbox rule applies,the place of mailing of the acceptance may determine the place of the contract.

Which of the following is not correct with respect to the adequacy of consideration?

Discuss the requirements for a valid offer,explaining both how an offer is to be communicated and how such an offer can be brought to an end.

Which of the following shows the use of the doctrine of promissory (equitable)estoppel?

A revocation of an offer is effective only when it has been communicated to the offeree.

The postbox rule applies when which of the following means of communication is used?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

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Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

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Exam 6: The Elements of a Contractconsensus and Consideration

Once a person has promised to hold an offer open for a specified period of time,he cannot change his mind.

If you pay $1000 for a 90-day option on property offered at $200 000,which of the following is true?

Only the essential terms of a contract must be set out in the offer.

What did the Court decide in Entores Ltd.v.Miles Far East Corp.?

All of the essential terms of a contract must be clearly specified.

What was significant about the case of R.v.Commercial Credit Corp.?

One of the requirements in a contract is that there be an exchange of consideration between the parties.Explain what is meant by "consideration."

Sam owed Joe $6000,due January 12,2012.On January 1,Joe said he'd take $5000 in full satisfaction of the debt if Sam paid him $5000 on January 5th instead.Sam paid on January 5th.A week later,Joe wants to sue Sam for the $1000 he (Joe)was legally owed.Which of the following is true?

Read the following and indicate which agreement would not be a binding contract because of a problem with the requirement of consideration.Assume all the other requirements for a binding contract have been met.

You owe Mr.Store $900 for goods received and want him to take $800 in full satisfaction of the debt.Which of the following is false?

In Gilbert Steel Ltd.v.University Construction Ltd.,what did the Court find on the issue of consideration?

When the postbox rule applies,the place of mailing of the acceptance may determine the place of the contract.

Which of the following is not correct with respect to the adequacy of consideration?

Discuss the requirements for a valid offer,explaining both how an offer is to be communicated and how such an offer can be brought to an end.

Which of the following shows the use of the doctrine of promissory (equitable)estoppel?

A revocation of an offer is effective only when it has been communicated to the offeree.

The postbox rule applies when which of the following means of communication is used?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters