Deck 5: Elements of Contracts, E-Commerce and Technology

Question 1

Businesses use contracts to buy and sell goods and services.

Answer 1

True

Question 2

Contract law deals with the legal principles and rules that allow enforceable agreements to be created.

Answer 2

True

Question 3

Basic contract law does not apply to online contracts.

Answer 3

False

Question 4

Express terms are those terms not specifically negotiated by the parties but are implied in the contract.

Question 5

A contract is a business's basic protection in a commercial transaction.

Question 6

A contract is an exchange of promises between two or more parties which can be enforced by the court.

Question 7

Keeping a contract short is the best way to avoid legal disputes arising from the contract.

Question 8

The courts generally presume parties intend to be legally bound by a contract.

Question 9

Contracts are the most common and basic legal document used by a business.

Question 10

A contract can exist in either a written, verbal, or implied form.

Question 11

There are no exceptions to the substantive aspects of contracts within the control of the parties.

Question 12

Implied terms are those terms negotiated specifically by the parties and specified in the contract.

Question 13

From a risk management perspective, contracts do not need to be in writing.

Question 14

There are no exceptions to the parties' ability to create any enforceable agreement they desire.

Question 15

Each province has enacted statute law to govern all business contract disputes.

Question 16

Express terms are those terms negotiated specifically by the parties and specified in the contract.

Question 17

Implied terms are those terms not specifically negotiated by the parties but are implied in the contract.

Question 18

A contract is formed when there is a meeting of the minds.

Question 19

A simple agreement between friends is an enforceable contract.

Question 20

If you enter into a valid contract that was not in your best interest, the Court will assist you in getting out of the contract.

Question 21

There are four (4) requirements to contract formation.

Question 22

Acceptance must be communicated by the offeree to the offeror.

Question 23

An offer specifies the parties involved, the product, and the price.

Question 24

Basic contract law does apply to online contracts.

Question 25

Consideration is the value one is willing to pay or receive for the promise agreed to in an offer.

Question 26

Acceptance is when one party agrees to the terms of the offer.

Question 27

An offer is when both parties understand and agree to the terms of a contract.

Question 28

An offer is a willingness to form a contract.

Question 29

The person making an offer is the offeree.

Question 30

Andy offers to sell his car to Bob, but Bob needs to arrange financing, so Andy says he will give Bob three days to do so. Andy can revoke the offer before the three days are up.

Question 31

An invitation to treat is a willingness to form a contract.

Question 32

International e-commerce contracts are not valid in Canada.

Question 33

Parties to a contract must intend to create legally binding obligations.

Question 34

The person receiving an offer is the offeree.

Question 35

The person making an offer is the offeror.

Question 36

A counter offer creates a new offer.

Question 37

The person receiving an offer is the offeror.

Question 38

Susan offered to pay $500 for a ring that Donna has agreed to sell to her. Each woman has given consideration to the other for her promise.

Question 39

All levels of Canadian government are working on laws to recognize e-commerce contracts as valid enforceable contracts.

Question 40

An invitation to treat is another term for offer.

Question 41

McSweeney agrees to clear out Broad's basement, but no price is set at the time. Broad argues, once McSweeney has done the work, that since no price was agreed upon, he should pay only a reasonable price and not the excessive amount stated in the bill presented to him by McSweeney. He is right.

Question 42

Quantum meruit means paying as much is deserved.

Question 43

Judge may add implied terms to a contract to give meaning to the words in the contract.

Question 44

Mary loves to shop online, particularly from one online retailer. She recently purchased two items that were sent to her home. She contacted the company and wanted to return the items. The Company said "You clicked the 'I agree' button. We do not accept returns." Mary should be able to successfully argue that there was no contract as she did not agree to the "no return" policy.

Question 45

Express terms in a contract must be clear and not ambiguous.

Question 46

Jill has been negotiating the purchase of a speedboat with Sandi for the last two weeks. Two days ago, she emailed Sandi, saying "I won't go any higher than $8,000 and that includes the trailer. Take it or leave it, but that's my final offer." Sandi sent an email the same day that said "I will accept $8,000, but not including the trailer." There is a contract between Jill and Sandi.

Question 47

Jeremy agrees not to sue Angela for having crashed into his car if she agrees to pay for his repairs. Since he promised only not to do something that he could have done, he has not given consideration for her promise to pay.

Question 48

In contracts between family members, the courts will presume that parties have an intention to enter into a contract.

Question 49

In contracts between family members, the courts will not presume that parties have an intention to enter into a contact.

Question 50

The post box rule governs acceptance of an offer over a distance.

Question 51

Alliston enters into an agreement with Berkley that, for $2,000, gives him the right to agree to purchase Berkley's screen printing business within the next 30 days for $50,000. If Alliston decides to buy, they agree that the $2,000 will be the down payment on the purchase price. This agreement is an option.

Question 52

An option agreement is enforceable when separate consideration is paid to the offeree.

Question 53

Under the Electronic Commerce Act, acceptance occurs when the offeror receives and opens the email.

Question 54

Under the Electronic Commerce Act, acceptance occurs when the offeree sends the email.

Question 55

In business relationships, the courts will presume that parties have an intention to enter into a contact.

Question 56

Unless otherwise stated acceptance of an offer can be by any reasonable method.

Question 57

A person can be required to perform on a contract for a service provided gratuitously.

Question 58

In business relationships, the courts will not presume that parties have an intention to enter into a contract.

Question 59

Implied terms in a contract must be clear and not ambiguous.

Question 60

An option agreement allows for a contract to remain open for a specified time.

Question 61

Contracts can be both partially written and oral.

Question 62

Contracts for guarantees are not required to be in writing.

Question 63

Standard form contracts are contracts drafted by one party and usually for their benefit.

Question 64

Electronic contracts are not required to be in a special format.

Question 65

Contracts for guarantees are required to be in writing.

Question 66

Judges may add express terms to a contract to give meaning to the words in the contract.

Question 67

Electronic contracts are required to be in a special format.

Question 68

Contracts for the purchase and sale of land must be in writing.

Question 69

Having contracts reduced to writing is a form of risk management.

Question 70

Terms of an oral contract are easier to prove in court.

Question 71

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

A) A notice posted on Kijiji "I'll pay $100 to whoever finds and returns my lost black lab puppy"
B) A notice in an email "15% off the price of all tablets until January"
C) A sweater displayed in the window of a shop with the price tag attached and showing
D) A display of goods on the shelves of Safeway

Question 72

Important terms should be expressed in a contract.

Question 73

In Canada, the objective of the Uniform Electronic Commerce Act (UECA) is primarily to:

A) Define what constitutes a privacy violation in a contract
B) Provide remedies for internet commerce and breach of contract
C) Restrict internet gambling and online purchases
D) Make electronic contracts as binding on parties as written ones

Question 74

Contracts for the purchase and sale of land can be oral.

Question 75

You have an agreement with a friend to meet for coffee after class. Your friend does not show up. You had turned down an opportunity to work and as a result lost 8 hours of wages. You decide to sue your friend. Which of the following statements is true?

A) You and your friend have a simple agreement that the court would enforce
B) You and your friend have a simple agreement that the court would not enforce
C) You and your friend have a valid contract that the courts would not enforce
D) You and your friend have a valid contract that the courts would enforce

Question 76

Standard form contracts are like all other contracts, the parties can negotiate the terms prior to signing.

Question 77

Which of the following is not a requirement for a valid contract?

A) Acceptance
B) Writing
C) Intention
D) Consideration

Question 78

Important terms can be implied in a contract.

Question 79

All contracts must be in writing.

Question 80

James says he would like to buy Mike's motorbike for $3,000. Mike responds by saying he would accept $4,000 given all the work he has put into it. James says "Ok. I'll give that. Here's $2,000 now, and I'll pay the balance in two installments."

A) This is not a contract
B) This is an acceptance
C) This is a contract
D) This is an offer