Question 1

Which of the following is true with regard to contract law?
A)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.
B)A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat.
C)A revocation is effective only when sent.
D)An important criterion for determining the place of the contract is the place where the offer is mailed.
E)A counter-offer does not end an offer.

Accepted Answer

An option is a type of contract where one party pays for the right to be able to accept an offer within a set period of time. This is often used in real estate transactions, where a potential buyer may pay for the option to purchase a property within a designated timeframe.

Question 2

The City issued a request for bids for the construction of an events centre with the closing stated as June 15 at 4:00 p.m of the current year.The tender stated that no changes could be allowed to bids after submission.XYZ Construction submitted its bid a week in advance of the closing date.However,on June 12,XYZ Construction advised the City that it needed to increase the price of the events centre project in its bid,as it had discovered a major calculation error in its bid submission.The City refused to allow a change to XYZ's bid.After the specified close date,the City awarded the construction contract to XYZ Construction,as it was the lowest bidder.XYZ Construction refused to perform the work.This caused the City to award the contract to the company with the second-lowest bid,thus increasing the City's cost for the project.The City sued XYZ Construction.What is the legal position of the parties?
A)XYZ will win,as it advised the City in advance of the closing date that it needed to revise its bid.
B)XYZ will win,as it had only bid on the construction job but had not signed a construction contract to build the events centre.
C)XYZ will win,as bidders are not obligated to accept a contract based solely on the fact that they have bid on it.
D)The City will win because the lowest bidder is always selected and obligated to perform.
E)The City will win,as XYZ was bound by a subsidiary agreement when it submitted its bid.

Accepted Answer

The City will likely win because when XYZ Construction submitted its bid, it entered into a subsidiary agreement (often referred to as a bid bond or similar commitment) that holds the bidder to their offer until the bids are opened and a contract is awarded. This prevents bidders from withdrawing their bids to the detriment of the entity requesting the bids.

Question 3

Ann was offered a job that would pay $20 000,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?
A)There is no contract because an acceptance must be unconditional,and Ann's counter-offer has not been accepted.
B)There is a contract as soon as Ann drops her letter in the mailbox.
C)If Ann had not responded,there would have been a contract because silence is the standard form of acceptance.
D)Ann is still free to reconsider and take the original offer even after the prospective employer receives her letter.
E)Since Ann accepted the offer,there is a contract.

Accepted Answer

Ann's response to the job offer with additional conditions (delayed start date and more vacation days) constitutes a counter-offer rather than an unconditional acceptance. According to contract law, an acceptance must mirror the terms of the offer exactly for a contract to be formed. Since Ann proposed different terms, there is no contract until the employer accepts her counter-offer.

Question 4

Explain why standard phrases are used by lawyers to create legal documents.

Accepted Answer

The answer of Explain why standard phrases are used by...

Question 5

Jed,who lives on Cape Breton Island,needed money for a trip to France.He decided to sell his electric guitar.On Monday,October 29,he called the owner of a music store in Halifax and offered to sell his Fender Stratocaster guitar for $400,the offer to be open until Friday at noon,November 2.Jed told the store owner to send a letter of acceptance since Jed would be away for a few days.The store owner examined his inventory and mailed a letter of acceptance on Thursday,November 1.When Jed returned home on Saturday,November 3,the letter had not yet arrived,so that afternoon he sold the guitar to a music teacher in his town.The store owner in Halifax sued for breach of contract.Which of the following is true?
A)Sending a letter by mail was not a reasonable method of acceptance.
B)The acceptance was effective before the offer lapsed,so there was a contract between Jed and the store owner.
C)The offer lapsed before the store owner accepted.
D)The offer was revoked before the store owner accepted.
E)The letter of acceptance was effective when it was received,and by then Jed had sold the guitar,so there was no contract.

Accepted Answer

The acceptance was effective when the store owner mailed the letter on November 1, before the offer's deadline of November 2 at noon, thus forming a contract between Jed and the store owner.

Question 6

An offer will end when the subject matter of the offer is sold to someone else.

Accepted Answer

The answer of An offer will end when the subject...

Question 7

Explain typical rules associated with the tendering process.

Accepted Answer

The answer of Explain typical rules associated with the tendering...

Question 8

Explain what is meant by a tendering process and discuss the tender agreement.

Accepted Answer

The answer of Explain what is meant by a tendering...

Question 9

When you pay for an option,this prevents a person from revoking an offer before the expiration of the specified time.

Accepted Answer

When you pay for an option, it gives you the right to purchase or sell an asset at a specified price within a specific time frame. This prevents the person who made the offer from revoking it before the expiration of the option period. The payment acts as a consideration that binds both parties to the agreement.

Question 10

Last week,Chris offered to sell her printer to a classmate for $200.Her offer included these exact words: "This offer to be open until noon,February 20." She now has second thoughts and thinks she should give or sell it to her brother,who has gone back to school.She wants to end the offer.Which of the following would not end the offer?
A)Chris's death before acceptance
B)the sale of the printer to her brother before acceptance
C)revocation of the offer by Chris before acceptance
D)expiration of the offer at noon on February 20 if there has been no acceptance
E)a counter-offer by an offeree

Accepted Answer

The answer of Last week,Chris offered to sell her printer...

Question 11

A company put a job out to tender.The tendering process requires the company to follow certain rules typically associated with this process.Which of the following is most likely not a requirement in a tendering process?
A)The company must disclose all relevant information affecting the project.
B)The company must accept only bids that comply with the terms of the tender.
C)The company must accept the lowest bid price.
D)The company must not accept bids after the specified closing date.
E)The company must treat all parties equally and in good faith.

Accepted Answer

The tendering process typically does not require the company to accept the lowest bid price. While price may be a factor in the decision-making process, the company may choose the bid that offers the best overall value or meets the project requirements most effectively.

Question 12

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 on 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 on January 8.On these facts,which of the following is true?
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)The letter of acceptance was effective when it was received,and by then Carlos had sold the car,so there was no contract.
D)The acceptance was effective before it was received,so there was a contract between Carlos and his friend.
E)Sending an acceptance by mail was not a reasonable method of acceptance in this situation.

Accepted Answer

The mailbox rule states that an acceptance becomes effective when it is sent, not when it is received by the offeror. Since the friend sent the letter of acceptance on January 3, before Carlos sold the car to Mr. Reno on December 31 (considering the timeline confusion, assuming a typo and the car was sold after the letter was sent), the acceptance was effective upon dispatch. Therefore, there was a contract between Carlos and his friend when the friend mailed the acceptance.

Question 13

Jon was developing a computer program for use by owners of track clubs to aid them in keeping records of the members,their runs,times,injuries,etc.Eager to finish the program,Jon,in Edmonton,called his friend Sam,in Calgary,and offered him $2000 to help: five hours per working day,five days per week,for five weeks.Sam said that he would have to think about it.Jon told Sam that he was eager to get going,but that he would hold the offer open until Friday,February 6,at noon.Which of the following is true? (Read each separately.)
A)If Jon revokes his offer before Friday at noon,Sam could sue him for breach of contract because Jon had promised to hold the offer open.
B)If the court held that acceptance by mail was reasonable in the circumstances and if Sam accepts by mail,the place of contract is Edmonton.
C)If Jon goes ahead and hires Betsy from Edmonton at noon on February 3,it would be too late for Sam to accept.
D)If Sam wants to ensure that the offer will remain open until noon on February 6,he should give Jon some consideration (that is,purchase an option agreement).
E)If Sam accepts by phone within the time specified in the offer,the place of contract would be Calgary.

Accepted Answer

The best choice is D. This is because Jon has given Sam a deadline of Friday, February 6, at noon to accept the offer. Until that time, Jon is not obligated in any way to hold the offer open. However, if Sam wants to ensure that the offer remains open until that time, he could purchase an option agreement, which is a form of consideration. This would bind Jon to the offer until the deadline. Without consideration, there is no binding contract. Therefore, Sam giving Jon an option agreement would ensure that the offer is held open until Friday at noon.

Question 14

Which of the following is true with regard to the offer and acceptance necessary to form a contract?
A)An ad in the newspaper that reads "Best offer in town! A new 2012 Honda Civic for only $15 999!" is considered an offer.
B)If a seller offers to sell for $100 and the buyer makes a counter-offer of $90 that is rejected by the seller,the buyer can accept the original offer of $100 and bind the seller in contract.
C)A purchased option that states "This offer to be open until noon tomorrow" prohibits the offeror from revoking the offer before that time.
D)A person can accept an offer after it has lapsed.
E)Where the acceptance is effective is not an important factor in determining the place of contract.

Accepted Answer

A purchased option creates a contract between the buyer and the seller, where the seller agrees to keep the offer open for a specified time period. During this time, the offeror cannot revoke the offer. Choice A is incorrect as an ad is usually considered an invitation to make an offer, rather than an offer itself. Choice B is incorrect as a counter-offer terminates the original offer, and the buyer cannot then accept the original offer. Choice D is incorrect as an offer can only be accepted while it is still valid, and once it has lapsed, there is no longer an offer on the table. Choice E is incorrect as the place of performance of a contract is an important factor in determining the place of contract.

Question 15

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 Joe to say 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 16

Martin offered to buy a property for $200 000,"offer to remain open until 5:00 p.m.on Thursday,January 21." Which one of the following situations will not cause the offer to end?
A)a counter-offer from the offeree
B)death of the offeror
C)insanity of the offeror before the offer is accepted
D)Martin sells the property to another party before the expiration of the period stipulated and before hearing from the offeree
E)the offeree has not accepted and the stipulated time has expired

Accepted Answer

In contract law, an offer can typically be revoked by the offeror at any time before acceptance unless there is an option contract in place. However, selling the property to another party does not automatically terminate the offer unless the offeree is notified of this action. Therefore, if Martin sells the property to another party but the offeree has not been informed before the expiration of the offer period, the original offer does not automatically end.

Question 17

The City issued a request for bids for the construction of an events centre; the terms stated that the closing would be June 30 at 4:00 p.m.of the current year.At 4:15 p.m.on June 30,a representative of Joe's Construction arrived at the City offices to submit a bid.There was discussion about the fact that the stated deadline had passed,but the person from Joe's Construction said that the submission was being made on June 30 while the City offices were still open,and the only reason there had been a delay was a problem locating the company managers who needed to sign the bid.Which of the following statements is true?
A)If Joe's Construction's bid is the most competitive bid,the City will be obligated to accept it and award the contact to Joe's Construction.
B)The City must still consider the bid from Joe's Construction as it is required to treat all parties equally and in good faith.
C)If Joe's Construction has worked for the City previously and this is the first time there has been a problem with a late submission,the City should consider the bid in good faith.
D)The bid from Joe's Construction cannot be considered,as it does not comply with the terms of the tender.
E)The City should confirm that there was a problem getting the signatures and,if so,consider the bid from Joe's Construction as having been submitted on time.

Accepted Answer

The bid from Joe's Construction was submitted after the specified deadline, making it non-compliant with the tender's terms, which are typically strict about submission times to ensure fairness and transparency in the bidding process.

Question 18

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 him that he had decided to accept the offer and that he'd buy the car.Joe told Harry that it was too late; he had sold the car to someone else.Harry said that it had been offered to him first,and he insisted that Joe 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 19

Which one of the following will not end an offer?
A)The offeror communicates a revocation of the offer.
B)The offer is said to be open for three weeks and the three weeks expire.
C)The offeror sells the goods being offered to someone else.
D)The offeror dies.
E)The offeree makes a counter-offer.

Accepted Answer

Selling the goods to someone else does not legally terminate an offer unless the offeree is notified of this action. The other options directly involve actions or events that legally terminate an offer.

Question 20

Roberts has the chance to buy three adjacent city lots zoned as "duplex." The most profitable return would be the building of four townhouses across the three lots,but that would necessitate getting permission from the city,and that procedure takes time.If Roberts buys a 60-day option from the seller of the properties for $400,which of the following is true?
A)By buying the option,Roberts has bought a period of time during which she must accept the land offer.
B)If Roberts does not exercise the option during the option period,she can later force the seller to sell that property to her at that price.
C)If Roberts does not exercise the option,she will get her $400 back because she didn't get what she was bargaining for.
D)The seller is bound by contract neither to sell the property to any other party nor to revoke the offer within the option period.
E)The offer for the properties will expire before the end of the designated 60-day period if another person offers a higher price.

Accepted Answer

An option contract, such as the one Roberts buys, gives her the exclusive right to purchase the property within a specified period (in this case, 60 days) without obligating her to make the purchase. The seller, having accepted the $400 for the option, is legally bound not to sell the property to anyone else during the option period, ensuring Roberts has the exclusive opportunity to buy the property at the agreed terms within those 60 days.

Quiz 3: Formation of Contracts

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

Explain why standard phrases are used by lawyers to create legal documents.

An offer will end when the subject matter of the offer is sold to someone else.

Explain typical rules associated with the tendering process.

Explain what is meant by a tendering process and discuss the tender agreement.

When you pay for an option,this prevents a person from revoking an offer before the expiration of the specified time.

A company put a job out to tender.The tendering process requires the company to follow certain rules typically associated with this process.Which of the following is most likely not a requirement in a tendering process?

Which of the following is true with regard to the offer and acceptance necessary to form a contract?

Martin offered to buy a property for $200 000,"offer to remain open until 5:00 p.m.on Thursday,January 21." Which one of the following situations will not cause the offer to end?

Which one of the following will not end an offer?