Exam 6: The Elements of a Contractconsensus and Consideration

Which of the following is an offer as opposed to an "invitation to treat"?

A one-sided promise the courts will not enforce is known as ________.

Joe owed Sam $500.Two days after the money was due,he came to Sam saying he couldn't pay the $500,but if Sam would accept $300 as full payment,Joe would pay him right then and there.Sam agreed and the money was paid.Sam then sued for the other $200.Will he win?

For the postbox rule to apply,the offer must be made by mail.

An ad in the morning paper read: "Brand new 2011 Ford Focus $19 499.No payment until January 2012.We make your first payment." This is an example of which of the following?

What must be present in an offer before it qualifies as such?

List the five ingredients necessary to form a contract.

When the parties agree to pay the "market value" of an item,or when some other objective method or formula for pricing a product at some time in the future is used,the consideration is calculable and is thus sufficiently specific to be binding,thus overcoming the problem.

Berman made a documentary on the life of musician Artie Shaw.Shaw was cooperative and gave her permission to use certain songs if she received proper permissions from the copyright holders.The cost of the film was funded by her own savings,a private investor,the Canada Council,the Ontario Arts Council,and deferred salaries and material costs.In March of 1987 the film won an academy award as the best feature documentary for 1986.In November of 1987 Shaw's lawyer contacted Berman's lawyer: "...This letter states that Artie Shaw has a 35 percent profit participation in the motion picture ...." Which of the following accurately sets out the legal position of the parties?

Joe contracted with Sam,agreeing to pay Sam $400 if Sam would build him a bookcase.The essential terms included the type and quality of the wood,the dimensions,and the date of completion-February 14,2012.The work went more easily than expected and Sam said to Joe,"If you pay me another $50,I will have this finished and be out of here by February 8." Joe agreed.If the bookcase were done to specifications by the 8th,but Joe refused to pay anything,Sam would be entitled in law to

The promise to make a charitable donation is not enforceable,because it is a one-sided promise,even if the charity makes a commitment in return-such as a promise to name a building after the donor,or to use the money in a certain way-it has made a commitment.

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary.We'll give you an IBM-compatible PC with a Roland PR-1011 printer for only $1000!!! Pick it up today." This is an example of which of the following?

In Martel Building Ltd.v.Canada,what did the Supreme Court of Canada decide?

Indicate the correct statement about consideration.

It is clear that,under the common law,a one-sided promise is not ___________.

Which one of the following will not end an offer?

As property manager of a 15-unit apartment block,you receive rent payments on the first of every month from each tenant.Mrs.Lone,in apartment,whose rent is $500 per month,lost her job and was in dire financial difficulties.You agreed to take only $400 per month.For the last ten months,she has paid only $400 a month,but you have learned that for 4 months she has had a new and even better-paying job.You are angry that she failed to tell you this and you want to sue her for the entire amount of back rent ($1000).Which of the following arguments could she use most effectively against you?

The courts may enforce an unfair bargain.

Jed,who lived on Cape Breton Island,needed money for a trip to France.He decided to sell his electric guitar.On Monday,October 29,he called the owner of a music store in Halifax and offered to sell his Fender Stratocaster guitar for $400,the offer to be open until Friday noon,November 2.Jed told the store owner to send a letter of acceptance since he (Jed)would be away for a few days.The store owner examined his inventory and mailed a letter of acceptance on Thursday,November 1.When Jed returned home on Saturday,November 3,the letter had not yet arrived,so that afternoon he sold the guitar to a music teacher in his town.The store owner in Halifax sued for breach of contract.Which of the following is true?

Distinguish between a formal and a simple contract.