Question 1

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

Accepted Answer

A)  Where Barbra relies on Raylene's promise and suffers a loss, Barbra can sue Raylene for compensation even though the promise is gratuitous. 
B)  Where Hank and Jim have a contract and Hank releases Jim from part of Jim's obligation, Jim can use that release, even though it was given without consideration, as a defence if Hank sues for breach of contract. 
C)  Promissory estoppel means that Donna cannot revoke her offer where she has promised to hold it open for a specific period of time. 
D)  Where Able requests services from Cain, the doctrine of promissory estoppel requires a reasonable price to be paid even where no specific amount was agreed. 
E)  Promissory estoppel refers to the principle that, where a document is in writing and under seal, it is enforceable even where there is no consideration. 
A)  Where Barbra relies on Raylene's promise and suffers a loss, Barbra can sue Raylene for compensation even though the promise is gratuitous. 
B)  Where Hank and Jim have a contract and Hank releases Jim from part of Jim's obligation, Jim can use that release, even though it was given without consideration, as a defence if Hank sues for breach of contract. 
C)  Promissory estoppel means that Donna cannot revoke her offer where she has promised to hold it open for a specific period of time. 
D)  Where Able requests services from Cain, the doctrine of promissory estoppel requires a reasonable price to be paid even where no specific amount was agreed. 
E)  Promissory estoppel refers to the principle that, where a document is in writing and under seal, it is enforceable even where there is no consideration.

Question 2

A formal contract is one that is signed and sealed.

Accepted Answer

A) True 
 B)False

Question 3

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 he had placed orders to his suppliers for the flowers.The letter of acceptance was received by Jones on January 20.Which of the following is true?

Accepted Answer

A)  If the postbox rule applies, there is no contract because the letter of revocation was mailed before the letter of acceptance. 
B)  Jones's offer in the letter of January 10 lapsed before acceptance. 
C)  If the postbox rule does not apply, there is a binding contract. 
D)  If the postbox rule does apply, there is a binding contract. 
E)  The postbox rule is irrelevant; there is no contract simply because Jones can't use the fresh flowers. 
A)  If the postbox rule applies, there is no contract because the letter of revocation was mailed before the letter of acceptance. 
B)  Jones's offer in the letter of January 10 lapsed before acceptance. 
C)  If the postbox rule does not apply, there is a binding contract. 
D)  If the postbox rule does apply, there is a binding contract. 
E)  The postbox rule is irrelevant; there is no contract simply because Jones can't use the fresh flowers.

Question 4

Is an "agreement to agree" binding?

Accepted Answer

No.An offer must include all o

Question 5

Franz bought a round-trip ticket to Germany to visit relatives.Unfortunately,a week before flight time,he broke his leg.He offered his co-worker,Joe,the ticket for 80 percent of the full price,offer to remain open until 10:00 p.m.on December 15.Indicate to Joe which of the following is true with regard to the law of offer and acceptance.

Accepted Answer

A)  If Franz sells to someone else, it is too late for Joe to accept the original offer. 
B)  Franz could revoke the offer anytime before acceptance, even before 10:00 p.m. on December 15. 
C)  To create a contract, an offer must be in writing. 
D)  A letter of acceptance is always effective when it is dropped in the mailbox. 
E)  If Joe makes a counter-offer of 50 percent of the full price, and Franz rejects the counter-offer, Joe can still accept the original offer. 
A)  If Franz sells to someone else, it is too late for Joe to accept the original offer. 
B)  Franz could revoke the offer anytime before acceptance, even before 10:00 p.m. on December 15. 
C)  To create a contract, an offer must be in writing. 
D)  A letter of acceptance is always effective when it is dropped in the mailbox. 
E)  If Joe makes a counter-offer of 50 percent of the full price, and Franz rejects the counter-offer, Joe can still accept the original offer.

Question 6

If a person offers to hold his offer open for a period of time,he can still revoke it before that time if he changes his mind.

Accepted Answer

A) True 
 B)False

Question 7

Generally,acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

Accepted Answer

A) True 
 B)False

Question 8

Bob in Burnaby called Ed in Toronto and offered to sell him 40 kilograms of smoked salmon at $15 per kilogram.He requested that Ed phone him back by noon the next day.That way,Bob could offer it to someone else if Ed wasn't interested.Instead of phoning,Ed sent a letter of acceptance,in which he said that he would have his agent pick up the fish.On these facts,which of the following is false?

Accepted Answer

A)  If using the mail was unreasonable, the acceptance could not be effective until it was received. 
B)  If using the mail was unreasonable, the acceptance was effective when it was mailed. 
C)  The place of formation of the contract, if there was one, was Burnaby if the use of the mails was unreasonable. 
D)  The place of formation of the contract, if there was one, was Toronto if the use of the mails was reasonable. 
E)  Although a response by phone was requested, a response by mail would be effective if received before noon the next day. 
A)  If using the mail was unreasonable, the acceptance could not be effective until it was received. 
B)  If using the mail was unreasonable, the acceptance was effective when it was mailed. 
C)  The place of formation of the contract, if there was one, was Burnaby if the use of the mails was unreasonable. 
D)  The place of formation of the contract, if there was one, was Toronto if the use of the mails was reasonable. 
E)  Although a response by phone was requested, a response by mail would be effective if received before noon the next day.

Question 9

The courts will examine the fairness of consideration when insanity,drunkenness,or undue influence may have affected the transaction.

Accepted Answer

A) True 
 B)False

Question 10

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

Accepted Answer

A) True 
 B)False

Question 11

Explain any limitations on the availability of promissory estoppel.

Accepted Answer

It can be used only

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

A formal contract is one that is signed and sealed.

Is an "agreement to agree" binding?

If a person offers to hold his offer open for a period of time,he can still revoke it before that time if he changes his mind.

Generally,acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

The courts will examine the fairness of consideration when insanity,drunkenness,or undue influence may have affected the transaction.

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

Explain any limitations on the availability of promissory estoppel.

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

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Exam 6: The Elements of a Contractconsensus and Consideration

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

A formal contract is one that is signed and sealed.

Is an "agreement to agree" binding?

If a person offers to hold his offer open for a period of time,he can still revoke it before that time if he changes his mind.

Generally,acceptance must be communicated to the offeror to be effective unless there has been a history of similar relations between the parties.

The courts will examine the fairness of consideration when insanity,drunkenness,or undue influence may have affected the transaction.

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

Explain any limitations on the availability of promissory estoppel.

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