Question 1

If an offer is made by mail and an acceptance by mail is requested, when does a letter revoking the previous offer actually take effect?

Accepted Answer

A)  At the time that it is posted 
B)  At the time that it is received, if before acceptance 
C)  At any time before actual performance of the contract has begun 
D)  At any time before a letter of acceptance is received by the offeror 
E)  Never. A revocation must be done in person.

Question 2

If the mail is a reasonable means for accepting an offer, is there a contract formed when the offeror drops a letter of revocation in the mailbox at the very same instant that the offeree drops a letter of acceptance in the mailbox? Explain.

Accepted Answer

The answer of If the mail is a reasonable means...

Question 3

Joe offered to sell Harry his car for a specific price and Harry indicated that he needed some time to think about it. Two days later, Joe sold the car to a third party. That afternoon Harry phoned Joe and told Joe that he had decided to accept the offer and that he'd buy the car. Joe told him that it was too late; he had sold it to someone else. Harry said that it was offered to him first, and he insisted that he go through with the contract. Explain the legal liability of the parties.

Accepted Answer

The answer of Joe offered to sell Harry his car...

Question 4

Describe electronic signatures with respect to capacity.

Accepted Answer

The answer of Describe electronic signatures with respect to capacity....

Question 5

If you pay $1000 for a 90-day option on property offered to you at $200,000, which of the following is true?

Accepted Answer

A)  You have bought a 90-day period of time within which you may or may not accept the offer of the land. 
B)  With the signing of the option agreement, you have entered into two contracts-a contract for time and another for land. 
C)  You have agreed that you will accept the offer of land within the 90-day period. 
D)  If you do not exercise the option, you can get your $1000 back. 
E)  The seller of the land can revoke the offer of the land any time before acceptance.

Question 6

In Martel Building Ltd. v. Canada, what did the Supreme Court of Canada decide?

Accepted Answer

A)  A call to tender is an offer to contract and a binding contract may arise when a bid is submitted. 
B)  There is no requirement that bidders be treated fairly, as caveat emptor applies. 
C)  In a call for tenders, there can be no discretion. 
D)  A call for tenders is an invitation to treat which carries with it no legal status. 
E)  In a call for tenders, standard form contracts must always be used.

Question 7

Joe made an offer to sell his car to Harry, promising to keep the offer open for a week. However, he changed his mind, sold the car to someone else, and phoned Harry to inform him that he was withdrawing his offer because he had sold the car to someone else. Harry was angry and said that he wanted the car and was going to hold him to his promise to hold the offer open for a week. He sued for breach of contract. Will he win? Explain.

Accepted Answer

The answer of Joe made an offer to sell his...

Question 8

Ann was offered a job that would pay $50,000, that would provide for 18 days of vacation after one year of employment, and that would begin one week after her graduation. She wrote back that she would accept the job, but that she would not begin until three weeks after graduation and needed at least 21 days of vacation after the first year of work. On these facts, which of the following is true?

Accepted Answer

A)  If she had not responded, there would have been a contract because silence is the standard form of acceptance. 
B)  Since she accepted the offer, there is a contract. 
C)  There is no contract because an acceptance must be unconditional, and her counteroffer has not been accepted. 
D)  She is still free to reconsider and take the original offer even after the prospective employer received her letter. 
E)  There is a contract as soon as she drops her letter in the mailbox.

Question 9

Which of the following statements would be true with regards to the Uniform Electronic Commerce Act (UECA)?

Accepted Answer

A)  A password or encryption does not authenticate an electronic document. 
B)  The use of electronic documents is not allowed with regards to online purchase of goods. 
C)  The UECA changes the law with respect to the requirement of written documents and signatures. 
D)  A signature equivalent may be a password or some other form of encryption. 
E)  An offer will be accepted and a contract formed only when the offer is sent and accepted by snail mail, and not email.

Question 10

Which of the following is not correct with respect to the adequacy of consideration?

Accepted Answer

A)  Must be of some value and love and affection are not enough 
B)  Need not be present if the agreement is under seal 
C)  Need not be fair, unless there are extenuating circumstances (i.e., insanity or fraud) 
D)  Need not be legal if both parties clearly consent 
E)  Existing duty: a change in the contract requires new consideration

Question 11

Anmool verbally agreed to build a deck for Nikki for $1000 by the 15th of September, in time for a lavish backyard barbecue she was planning. On September 13th, Nikki became concerned at Anmool's lack of progress. Anmool told Nikki he would complete the deck on time, for an additional $200. Nikki agreed and Anmool completed the deck on time. Which of the following is correct?

Accepted Answer

A)  Nikki owes Anmool $1000 and there is no binding obligation with respect to the additional $200 because Anmool had an existing duty to complete the deck on time. 
B)  Nikki owes Anmool $1200, because that is what she agreed to, and such contracts are binding. 
C)  Problems of consideration can be raised only in the commercial context, not when the parties involved are both individuals. 
D)  Nikki does not owe Anmool anything because his lack of professionalism vitiated the contract. 
E)  No legal obligations arise because the agreement is not in writing.

Question 12

Joe offered to sell Harry his car for $500, but Harry said he needed some time to think about it. A couple of days later, Harry phoned back saying that he'd give Joe $450 for the car. Joe refused to take this. Then Harry said, "All right, I'll accept your offer for $500." Joe said that he'd changed his mind and refused to go through with the deal. Harry sued. Explain Joe's legal liability.

Accepted Answer

The answer of Joe offered to sell Harry his car...

Question 13

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?

Accepted Answer

A)  If the postbox rule applies, there is no contract because the letter of revocation was mailed before the letter of acceptance. 
B)  Jones's offer in the letter of January 10 lapsed before acceptance. 
C)  If the postbox rule does not apply, there is a binding contract. 
D)  If the postbox rule does apply, there is a binding contract. 
E)  The postbox rule is irrelevant; there is no contract simply because Jones can't use the fresh flowers.

Question 14

A contract with fixed terms prepared by a business is known as ________.

Accepted Answer

The answer of A contract with fixed terms prepared by...

Question 15

Consideration is restricted to the exchange of money.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  A counter-offer ends an offer. 
B)  A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat. 
C)  An important criterion for determining the place of the contract is the place where the acceptance is effective. 
D)  An option is a contract in which one person is buying a period of time within which he may accept the offer contained within the option. 
E)  A revocation is effective only when received.

Question 17

Electronic commerce (ecommerce) legislation specifies

Accepted Answer

A)  the laws regulating the Internet and Internet transactions. 
B)  the digital communication between government agencies. 
C)  the laws of what jurisdiction should apply to Internet transactions. 
D)  the time and place of the formation of electronic contracts. 
E)  the laws to restrict Internet gambling, pornography, and defamatory material.

Question 18

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

Accepted Answer