Question 1

Only the essential terms of a contract must be set out in the offer.

Accepted Answer

A) True 
 B)False

Question 2

If the postbox rule applies, a letter of revocation takes effect at the time of mailing.

Accepted Answer

A) True 
 B)False

Question 3

Joe contracted with Sam, agreeing to pay Sam $400 if Sam would build him a table. The essential terms included the type and quality of the wood, the dimensions, and the date of completion-February 14. The work went more easily than expected and Sam said to Joe, "If you pay me another $50, I will have this finished and be out of here by February 8." Joe agreed. If the table were done to specifications by the 8th, but Joe refused to pay anything, Sam would be entitled in law to

Accepted Answer

A)  nothing. 
B)  $400. 
C)  $450. 
D)  only $50. 
E)  $400 plus damages.

Question 4

Indicate how consumers are protected in standard form contract situations.

Accepted Answer

The answer of Indicate how consumers are protected in standard...

Question 5

What is promissory estoppel?

Accepted Answer

The answer of What is promissory estoppel?...

Question 6

Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt, and has actually received the lesser sum, the creditor is not bound by the agreement and can sue for the difference.

Accepted Answer

A) True 
 B)False

Question 7

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 in 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. Smith sent his letter of acceptance on the same day and 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.

Accepted Answer

The answer of Jones was a caterer and Smith was...

Question 8

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

Accepted Answer

A)  Because the postbox rule is archaic, it should be abolished in its entirety. 
B)  Because mail is the most common form of communication, the postbox rule does not need to be extended to telegrams. 
C)  Because of the postbox rule, there is no need to specify a method of acceptance in contractual negotiations. 
D)  Because fax machines were becoming more popular, the Court created a new rule known as the fax rule exception. 
E)  Because telex was instantaneous, there was no need to extend the postbox rule exception to that form of communication.

Question 9

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

Accepted Answer

A)  Even if the basic requirements of acceptance are met, an offer accepted by e-mail has been deemed legally ineffective. 
B)  Clicking an "I Accept" button is used by some online vendors to make an Internet user believe that the terms presented are binding, however "click-wrap" cases have confirmed that this action has no legal effect. 
C)  Online communications are governed by the postbox rule. 
D)  Many jurisdictions have passed legislation making electronic communications the equivalent of written documents for legal purposes. 
E)  Internet contracts are governed by the federal Uniform Electronic Commerce Act, in effect throughout Canada.

Question 10

In contract cases, the court generally

Accepted Answer

A)  does not look to see if the bargain is fair. 
B)  attempts to punish the party in breach of the contract by imposing a sentence. 
C)  will rewrite an agreement for the parties if their existing agreement did not include all the essential terms. 
D)  will enforce all promises. 
E)  will require the recipient of a service to pay a reasonable price where it is determined that the agreed-upon price was too low.

Question 11

What is a "subject-to clause"?

Accepted Answer

The answer of What is a "subject-to clause"?...

Question 12

"Quantum meruit" means

Accepted Answer

A)  "a shield but not a sword." 
B)  "a meeting of the minds." 
C)  "as much as deserved." 
D)  "the ultimate freedom to contract." 
E)  "to stand on decision."

Question 13

X contracted with Z. X promised to pay $500 and Z promised to build a cabinet to hold X's fine china. The essential terms included the type and quality of the wood, the dimensions, and the date of completion-February 13. The work went more easily than expected and Z said to X, "If you pay me another $85, I will have this finished and be out of here by February 10." X agreed. If the cabinet was done to specifications by the 10th, but X refused to pay anything, Z would be entitled in law to

Accepted Answer

A)  nothing. 
B)  $500. 
C)  $585. 
D)  only $85. 
E)  a "fair price."

Question 14

In Gilbert Steel Ltd. v. University Construction Ltd., what did the Court find on the issue of consideration?

Accepted Answer

A)  Because the Court will not look into the adequacy of consideration, a one-sided agreement is enforceable. 
B)  A one-sided agreement is, in law, a form of unilateral contract. 
C)  A one-sided agreement is not enforceable. 
D)  A one-sided agreement is only binding if its essential terms are reduced to writing. 
E)  Because commercial parties dealing at arm's length were involved, a one-sided agreement is valid.

Question 15

A formal contract is one that is signed and sealed.

Accepted Answer

A) True 
 B)False

Question 16

Carlos visited Vancouver last summer and instead of going back to Ontario he stayed and enrolled at Simon Fraser University. 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 having heard 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 true?

Accepted Answer

A)  In order for there to be a binding contract, there must be an offer and receipt of the letter. 
B)  All methods of acceptance are effective upon receipt by the offeror. 
C)  Sending an acceptance by mail was not a reasonable method of acceptance in this situation. 
D)  The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract. 
E)  The acceptance was effective before it was received, so there was a contract between Carlos and his friend.

Question 17

Which one of the following is enforceable?

Accepted Answer

A)  Mr. Ho promised to give his needy friend Mr. Jahn $100. 
B)  Ms. Jones promised to pay an additional $100 to Mr. Wood if Wood finished the existing contract on time, according to the terms of the contract. 
C)  Mr. Baker was so sick of an old chair that, when Mr. Venson offered him $10 for it, he agreed (i.e., promised to sell it to him), although the market value of the chair was $80. 
D)  Ms. Goode promised to send $10 to Mr. Paul, who kindly came and warned her when he saw a tow truck approach her car. 
E)  An ad in the paper promises to pay $5 for the return of a lost ring, but the person who finds and returns the ring never saw the offer in the newspaper.

Question 18

Distinguish between a void and a voidable contract.

Accepted Answer

The answer of Distinguish between a void and a voidable...

Question 19

Quantum meruit is a benefit or a detriment flowing between the parties to an agreement as the result of the striking of a bargain.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is correct with respect to the law of consideration?

Accepted Answer

A)  The amount of consideration to be paid in a contract must be reasonable (that is, fair) from the point of view of each party. 
B)  Without consideration or a seal, there can be no contract. 
C)  Consideration must have some value but need not be specific. 
D)  For a contract to be binding, something valuable must have changed hands. This consideration may have been paid before the agreement (past consideration) or at the time of the agreement (present consideration), but future consideration is no consideration. 
E)  Consideration need not be specific, just so both parties get something out of the deal.

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

Only the essential terms of a contract must be set out in the offer.

If the postbox rule applies, a letter of revocation takes effect at the time of mailing.

Indicate how consumers are protected in standard form contract situations.

What is promissory estoppel?

Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt, and has actually received the lesser sum, the creditor is not bound by the agreement and can sue for the difference.

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

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

In contract cases, the court generally

What is a "subject-to clause"?

"Quantum meruit" means

In Gilbert Steel Ltd. v. University Construction Ltd., what did the Court find on the issue of consideration?

A formal contract is one that is signed and sealed.

Which one of the following is enforceable?

Distinguish between a void and a voidable contract.

Quantum meruit is a benefit or a detriment flowing between the parties to an agreement as the result of the striking of a bargain.

Which of the following statements is correct with respect to the law of consideration?