Exam 6: The Elements of a Contractconsensus and Consideration

"For a contract to be binding,both parties must have a clear understanding of all the terms of that agreement." Discuss the accuracy of that statement.

Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt,and has actually received the lesser sum,the creditor is not bound by the agreement and can sue for the difference.

When Mr.Adams tells the local Boys' and Girls' Club that he will give them $5000 if they promise to use the funds for their summer camping program,this is an example of which of the following?

Harry saw Joe in his classic Buick at a local drive-in restaurant,and told Joe that he'd like to buy it.He offered him $1500.Joe said he had to think about it and that he'd let Harry know.Two days later,Joe decided that he needed the money and couldn't afford to keep the car.He wrote Harry a letter accepting his offer and mailed it that afternoon.The next day,Harry phoned telling Joe he'd changed his mind and that he needed the money for something else.Joe told him about the letter,and in fact Harry received the letter that day after the telephone conversation in which he attempted to revoke the offer.Joe insisted on going through with the deal.Explain the legal liability of the parties.

Joe owed Sam $500.Two days before the money was due,he came to Sam and told him he couldn't pay the $500,but if Sam would accept $300 right then,in full satisfaction of the debt,he would pay him that amount.Sam agreed,then later sued for the other $200.Will he win?

A term making a contract conditional on future events is known as ________.

A reasonable price paid for requested services is referred to in law as ________.

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

Jon was developing a computer program for use by owners of track clubs,which would aid them in keeping records of the members,their runs,times,injuries,etc.Eager to finish the program,Jon,in Edmonton,called his friend Sam,in Calgary,and offered him $4000 to help: five hours a working day,five days week,for five weeks.Sam said that he would have to think about it.Jon told Sam that he was eager to get going,but that he would hold the offer open until Friday,February 6,2011,at noon.Which of the following is true? (Read each separately.)

The courts will use quantum meruit to determine what should be paid when a person providing services is not allowed to finish by a breaching party.

A contract is binding if the consideration involved is a commitment not to do something,as opposed to a promise to do something.

On Friday,Harlan offers to sell Lily his motorcycle for $1000.When Lily hesitates,Harlan tells her to take her time deciding,promising her he would give her the weekend to make up her mind.On Saturday,Harlan runs into Lily at the mall and informs her he has sold the bike to Angie instead.What recourse does Lily have?

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad,found the kittens,and returned them.This is an example of which of the following?

If an offer is made by mail and an acceptance by mail is requested,when does a letter revoking the previous offer actually take effect?

If the mail is a reasonable means for accepting an offer,is there a contract formed when the offeror drops a letter of revocation in the mailbox at the very same instant that the offeree drops a letter of acceptance in the mailbox? Explain.

Joe made an offer to sell his car to Harry,promising to keep the offer open for a week.However,he changed his mind,sold the car to someone else,and phoned Harry to inform him that he was withdrawing his offer because he had sold the car to someone else.Harry was angry and said that he wanted the car and was going to hold him to his promise to hold the offer open for a week.He sued for breach of contract.Will he win? Explain.

What are the ways in which an offer can come to an end prior to acceptance?

Distinguish between an offer and an invitation.

Sam had been a friend of Joe's for a considerable period of time and had often accompanied him as he sailed his classic yacht.Sam had often communicated to Joe how much he would like to have it.On Friday night,a friend told Joe that Sam had suffered some business reverses and was going to have to get rid of the yacht.Joe immediately wrote Sam a letter offering to purchase the yacht for $25 000.Unknown to Joe,Sam had written Joe a similar letter offering to sell the yacht for $25 000.These two letters had passed in the mail.Joe received Sam's letter about 12 noon on Saturday,and Sam received Joe's letter about 2:30 p.m.on Saturday.Are these people bound in contract? Explain.

Explain the postbox rule and discuss its relevancy in the modern business world.