Question 1

For the requirement of consideration to be satisfied, at least one of the parties must have performed what they promised.

Accepted Answer

A) True 
 B)False

Question 2

The promise of "love and affection" can constitute adequate consideration to support a contract.

Accepted Answer

A) True 
 B)False

Question 3

A term making a contract conditional on future events is known as ________.

Accepted Answer

The answer of A term making a contract conditional on...

Question 4

The owner of a large restaurant wanted four large pots of flowers in front of the restaurant. Laura, a landscaper, submitted her offer: four large pots with flowers for $800. The owner said he would pay $600 for that. Laura said, "For $600, I'll provide four smaller pots with flowers." The owner said, "$600 for the smaller pots with flowers plus an arrangement for the front desk." Laura said, "Forget it," and started to leave. The owner said, "All right, I'll accept your offer of $600 for the four smaller pots with flowers." Laura didn't answer and got into her truck and drove off. On these facts, which of following is true?

Accepted Answer

A)  There is no contract because Laura's last offer was revoked. 
B)  There is no contract because Laura's last offer had been rejected by a counter-offer, and the owner's offers had been rejected or were not accepted. 
C)  There is no contract because Laura's last offer had lapsed after a reasonable time. 
D)  There is a contract because at one point in the conversation Laura was willing to sell and the owner was willing to buy four smaller pots with flowers for $600. 
E)  There is no contract because there is a presumption in law in these circumstances that the parties did not intend to create a legal relationship.

Question 5

When Mr. Adams tells the local Boys' and Girls' Club that he will give them $5,000 if they promise to use the funds for their summer camping program, this is an example of which one of the following?

Accepted Answer

A)  Gratuitous promise 
B)  When accepted by the club, a bilateral contract 
C)  When accepted by the club, a unilateral contract 
D)  Promissory estoppel 
E)  Inadequate consideration

Question 6

"One of the basic precepts in contract law is that any bargain struck must be fair to be enforceable." Explain the accuracy of that statement.

Accepted Answer

The answer of "One of the basic precepts in contract...

Question 7

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% 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 any time 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 counteroffer of 50% of the full price, and Franz rejects the counteroffer, Joe can still accept the original offer.

Question 8

Which of the following is an example of a unilateral contract?

Accepted Answer

A)  Joe agrees to paint Sam's house for $500. 
B)  Joe pays $50 for groceries at a grocery store. 
C)  C returns a lost dog and claims the $50 reward. 
D)  Joe promises to give Harry his old boat when he gets his new one. 
E)  Sam orders a meal in a restaurant.

Question 9

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 10

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

Accepted Answer

The answer of What are the ways in which an...

Question 11

An invitation to treat is an offer published in the newspaper.

Accepted Answer

A) True 
 B)False

Question 12

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.

Accepted Answer

The answer of Discuss the requirement of consideration and its...

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad, found the kittens, and returned them. This is an example of which of the following?

Accepted Answer

A)  Invitation to treat 
B)  Offer 
C)  Gratuitous promise 
D)  Bilateral contract 
E)  Unilateral contract

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following shows accurate use of the doctrine of promissory (equitable) estoppel?

Accepted Answer

A)  Ralph told Mary that he would give her his old boat. If he doesn't, Mary could use the doctrine to force him to do so. 
B)  If Nancy accidentally ran her car over her neighbour's bushes, she could use the doctrine as a defence. 
C)  This doctrine can be used by a plaintiff to enforce a written promise signed and sealed (i.e., a seal has been affixed next to the signature of the promisor). 
D)  A defendant can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive the defendant some of his obligation. 
E)  If Ho requests services from Jones and there is no mention of price, if Ho doesn't pay Jones, this doctrine can be used to force Ho to pay a reasonable amount.

Question 17

The objective, in Canada, of the Uniform Electronic Commerce Act (UECA) is primarily

Accepted Answer

A)  to define what constitutes a violation of privacy. 
B)  to restrict Internet gambling. 
C)  to make electronic documents and signatures as binding on parties as written ones. 
D)  to provide a series of remedies for Internet commerce retail abuses, primarily from "offshore" enterprises. 
E)  to restrict Internet pornography.

Question 18

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 19

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 20

A one-sided promise the courts will not enforce is known as ________.

Accepted Answer

The answer of A one-sided promise the courts will not...

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

For the requirement of consideration to be satisfied, at least one of the parties must have performed what they promised.

The promise of "love and affection" can constitute adequate consideration to support a contract.

A term making a contract conditional on future events is known as ________.

When Mr. Adams tells the local Boys' and Girls' Club that he will give them $5,000 if they promise to use the funds for their summer camping program, this is an example of which one of the following?

"One of the basic precepts in contract law is that any bargain struck must be fair to be enforceable." Explain the accuracy of that statement.

Which of the following is an example of a unilateral contract?

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

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

An invitation to treat is an offer published in the newspaper.

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.

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

Sam placed an announcement in the newspaper as follows: "$200 reward for the return of two lost Siamese kittens." Joe read the ad, found the kittens, and returned them. This is an example of which of the following?

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.

Which of the following shows accurate use of the doctrine of promissory (equitable) estoppel?

The objective, in Canada, of the Uniform Electronic Commerce Act (UECA) is primarily

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

A one-sided promise the courts will not enforce is known as ________.