Exam 6: The Elements of a Contractconsensus and Consideration

The owner of a large restaurant wanted four large pots of flowers in front of the restaurant.Laura,a landscaper,submitted her offer: four large pots with flowers for $800.The owner said he would pay $600 for that.Laura said,"For $600,I'll provide four smaller pots with flowers." The owner said,"$600 for the smaller pots with flowers plus an arrangement for the front desk." Laura said,"Forget it," and started to leave.The owner said,"All right,I'll accept your offer of $600 for the four smaller pots with flowers." Laura didn't answer; she just got into her truck and drove off.On these facts,which of following is true?

Which of the following could not be used as consideration?

What is promissory estoppel?

Which of the following is false with regard to contract law?

From the point of view of consideration,would there be an issue if an off-duty police officer were hired to provide security services?

Which of the following is not an example of a contract?

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.On these facts,which of the following is false?

The existence of a seal eliminates the need for the elements of a valid contract.

Jones was a caterer; Smith was a florist.Jones won a contract to provide a banquet for a convention of florists.He wanted to decorate the hall with flowers.He sent a letter to Smith,describing what he wanted and asked for a price quote.Smith responded by a letter dated January 5,offering to supply the flowers for $5000.Jones received the letter on January 10 and responded on the same date,saying his price was too high and that he would pay $4500.While that letter was in the mail,but before it had been received by Smith,Jones learned that the convention was on artificial flowers and the organizers wanted no real flowers on display.On January 13,Jones quickly sent another letter telling Smith to ignore the letter of January 10 and that he wouldn't need any flowers at this time.This letter of the 13th was received on the 18th.Smith had received the letter of January 10 on January 15 and sent his letter of acceptance on the same day,and had placed orders to his suppliers for the flowers.The letter of acceptance was received by Jones on January 20.Is there a contract between Jones and Smith? Explain.

In the Pharmaceutical case,it was decided that goods displayed on the shelf in a self-service merchandising situation were an invitation to treat,rather than an offer.Discuss.

Mo drove his car to a shopping mall and parked it there to attend a movie.The place where he parked was designated as a one-hour parking space on a sign at the entrance where Mo drove in.There were many similar signs around the shopping mall stating that people were parking their cars at their own risk.But this particular sign said that the time limit for parking there was one hour,and as a term of the contract anyone parking over this one-hour limit would have to pay a fee of $60.When Mo got out of the movie,he found a ticket on his car (a demand for payment of the $60).He refused to pay and was sued.What would be Mo's defence in these circumstances?

For the requirement of consideration to be satisfied,at least one of the parties must have performed what they promised.

Ann was offered a job that would pay $20 000,that would provide for 18 days vacation after one year of employment,and that would begin one week after her graduation.She wrote back that she would accept the job,but that she would not begin until three weeks after graduation and needed at least a 21-day vacation after the first year of work.Based on these facts,which of the following is true?

An invitation to treat is an offer published in the newspaper.

Mary received a non-solicited selection of compact discs in the mail,with a letter informing her that she was now a member of the CD of the month club.It also said that if she didn't want these CDs,she could simply send them back; otherwise,she would be billed $10 for each CD at the end of the month.She simply put them away,and did not respond.They continued to send her more CDs each month until she had received 100 of them over a period of 10 months.The club then sent her a letter demanding payment; otherwise,they would take legal action.Explain her legal obligation in these circumstances.

Harry saw Joe in his classic Buick at a local drive-in restaurant and talked about wanting to buy it.Joe offered to sell it to him for $1500.Harry said he needed some time to think about it and that he would send him a letter.The next day,Joe changed his mind and mailed Harry a letter of revocation.The day after that,before Harry had received the letter of revocation,he sent a letter of acceptance to Joe.The next day the two letters arrived at their various destinations,Joe receiving Harry's letter of acceptance just after Harry received Joe's letter of revocation.Explain the legal liabilities of the parties.

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

A binding contract that will subsequently be put into a more formal document is known as ________.

Although the contract called for the delivery of three manuals,the writer had put so much effort into the first two that the buyer agreed to pay the whole contract price,$3000,for the two instead of the three manuals.Which of the following stops the buyer from later suing the writer for breach of contract and demanding the completion of the third manual?

If a business promises to pay all of its employees $500 to quit smoking,such an arrangement is a(n)______________.