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

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 the yacht.On Friday night,a friend told Sam that Joe had suffered some business reverses and was going to have to get rid of the yacht.Sam immediately wrote Joe a letter offering to purchase the yacht for $125,000.Unknown to Sam,Joe had written Sam a similar letter offering to sell the yacht for $125,000.These two letters passed in the mail.Sam received Joe's letter at about 12 noon on Saturday,and Joe received Sam's letter at about 2:30 p.m.on Saturday.Are these people bound in contract? Explain.

What did the Court decide in Entores Ltd.v.Miles Far East Corp.?

Only the person or group to whom an offer is made can accept it.

Joe sends Sanjay an offer via email from his Toronto office.The offer contains a provision indicating the offer expires at 5:00 p.m.Toronto time.Sanjay,who lives in Vancouver,replies accepting Joe's offer at 4:00 p.m.Vancouver time.Joe received Sanjay's email acceptance at 9:00 a.m.the next day.Which of the following statements is true? (Note the three hour time difference between Toronto and Vancouver)

Which of the following is true with respect to the application of contract law to the Internet?

A contract is a single promise,made by one person to another,enforceable in court.

An ad in the morning paper read: "Brand new Spartan 6s smartphone $349.No payment until January.We make your first payment." This is an example of which of the following?

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

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

What is promissory estoppel?

Explain any limitations on the availability of promissory estoppel.

Discuss the validity of online transactions and the related issues that arise in transacting business over the Internet.

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

An ad in the newspaper providing for a reward for a lost dog is an example of an invitation to treat.

Discuss the "freedom of contract," explaining what the implications and limitations are in the context of contract law.

Once a person has promised to hold an offer open for a specified period of time,he cannot change his mind.

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.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?

Which one of the following will not end an offer?

Sarah wanted an antique lamp for her bedroom.While in a second-hand shop,she saw a lamp that she really wanted marked $100.She offered the owner $75 for it.He said "I'll take $95." She answered "$80!" He said,"Lady,you're pushing me a bit,aren't you? I'll take $90,that's it." She said "OK I'll pay $90 if you throw in this old 'Vote-for-Pearson' button." He said,"Forget it,lady,my shop is closed," and asked her to leave.She said,"OK,I accept your offer of $95." He made no response.If she sues for breach of contract,which of the following is true?

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