Exam 6: The Elements of a Contract: Consensus and Consideration

Berman made a documentary on the life of musician Artie Shaw.Shaw's representative was cooperative and gave her permission to use certain songs if she received proper permission 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% profit participation in the motion picture...." Which of the following accurately sets out the legal position of the parties?

An employer's promise to pay a bonus in recognition of good work already performed by the employee would be binding.

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.

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary.We'll give you a StarSystem tablet/laptop with a Roland PR-1011 wi-fi printer for only $1299!!! Pick it up today." 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 the car.He offered him $15,000.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 and told 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 his phone conversation with Joe.Joe insisted on going through with the deal.Explain the legal liability of the parties.

Jon was developing a computer program for use by owners of track clubs to 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 working per day,for 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,at noon.Which of the following is true? (Read each separately.)

If a person agrees to sell someone a brand new Cadillac for $100,this becomes a valid,binding contract.

Hitting the "I Accept" button on a website is equivalent to an acceptance of the seller's offer.

A letter of revocation takes effect when received by the offeree.

The ad in the Real Estate Weekly read: "Best offer in Toronto! 3-bedroom home in the Annex for only $700,000!" This is an example of which of the following?

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

The courts may enforce an unfair bargain.

Four days ago,Pete was reading the newspaper and saw the following: "Best offer in town! Zenith XX Laser Printer - $400! 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.On these facts,which of the following is true?

Mr.Goode,a neighbour of your parents,offered to sell you his house for $400,000,a bit below market value.You are definitely interested but would like to see if your employment contract will be renewed and want to check about financing.Mr.Goode says that he'll hold the offer open for you until May 1st.On these facts,which of the following is false?

Which of the following statements regarding online transactions is true?

Distinguish between an offer and an invitation to treat.

Jones was a caterer and 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?

Whether a contract or another form of Internet communication,UECA provisions determine that a message is sent as soon as it is committed to the system,and it is received as soon as it arrives on the recipient's computer,even if it is never read.

Discuss the requirement of consideration and its role and value in the formation of contracts.In your answer,be sure to deal with the issue of fairness in the bargaining process.

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?