Reference no: EM133420001
Questions
1. Which of the following is not an ingredient necessary to form a contract?
Consideration
Fairness
Legality
Capacity
2. Which of the following is an example of a unilateral contract?
C returns a lost dog and claims the $50 reward.
Sam orders a meal in a restaurant.
Joe pays $50 for groceries at a grocery store
Joe agrees to paint Sam's house for $500.
3. 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?
Gratuitous promise
When accepted by the club, a bilateral contract
Promissory estoppel
When accepted by the club, a unilateral contract
4. Sarah wanted an antique lamp for the 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-Trudeau' 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?
There is a contract because he wanted to sell the lamp for $95 and she was willing to pay that much.
There is no contract because his offer to sell the lamp for $95 was rejected by counter-offer, and her offer to buy it for $95 wasn't accepted.
There is a contract because at one time he offered to sell the lamp for $95 and she accepted it.
There is no contract because his offer to sell for $95 lapsed after a reasonable time.
5. 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 false with regard to the law of offer and acceptance.
Franz could revoke the offer anytime before acceptance, even before 10:00 p.m. on December 15.
If Franz sells to someone else, it is too late for Joe to accept the original offer.
To creates a contract, an offer must be accepted unconditionally
If Joe needs time to think about it, he could offer to buy an option.
6. Which of the following is correct with respect to the operation of the postbox rule?
If the postbox rule applies, an acceptance must be communicated and heard by the offeree before it is effective.
For the postbox rule to apply, the offeror must make that clear when the offer is made.
If the postbox rule applies, the only way for an acceptance to be effective is to send it by mail.
If the postbox rule applies, the acceptance is effective at the point of mailing
7. Benton, who lives in Fredericton, contracted with Roselli, who lives in Manitoba. A dispute arose about the contract and each wanted it settled according to the laws of his province. Which of the following could not be relevant to determining the place of contract?
Where the contract was formed
The method of acceptance
The adequacy of consideration
Where the acceptance was effective
8. 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 hearing 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 false?
In order for there to be a binding contract, there must be an offer and an acceptance.
The acceptance was effective before it was received, so there was a contract between Carlos and his friend.
The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract.
Not all methods of acceptance are effective upon receipt by the offeror.
9. X contracted with Z. X promised to pay $500; Z promised to build a cabinet to hold X's computer disks. The essential terms included the type and quality of the wood, the dimensions, and the date of completion image.jpeg February 13, 2001. 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
only $85.
nothing.
$585.
a "fair price."
10. Which of the following could not be used as consideration
Work that was done in the past
A promise to deliver three tons of steel
50 cents
A promise to give up a legal right
11. What is the difference between a contract and an agreement?
12. What main features must a contract have to be binding?
13. What does it mean for the parties to an agreement to be ad idem?
14. What distinguishes a counteroffer from an inquiry?
15. Under what conditions will a court enforce a gratuitous promise?
16. Describe two instances where a contract would be void for violating a statute.
17. What are the formality requirements for a contract that is a deed?
18. What does the phrase "inequality of bargaining power" mean?
19. Explain what is meant by the term "valuable consideration."
20. Sara needs her car repaired before she leaves for a business trip on December 15. She takes it to Speedy Repair, where she agrees to pay $500, and Speedy Repair agrees to have her car ready for December 14. On December 12, Speedy Repair telephones Sara to tell her that the repairs are behind schedule and it does not think it can have the car ready by December 14 as promised. Sara is frantic and offers them an additional $500 to have the car ready for December 14. Speedy Repair agrees and offers to throw in a car wash and wax "for good business relations." Speedy Repair's mechanics work overtime and the car is ready by December 14, as well as being shiny and clean. Sara then refuses to pay the extra $500. Is Speedy Repair entitled to the additional $500? Explain.