Question 1

Which one of the following is enforceable?

Accepted Answer

Mr. Baker's agreement to sell the chair to Mr. Venson for $10, despite its market value being $80, is enforceable because it constitutes a valid contract with offer, acceptance, and consideration. The adequacy of consideration (the price) is not typically questioned by courts as long as it is legally sufficient.

Question 2

Which of the following would best satisfy the requirements for a good legal offer?

Accepted Answer

A good legal offer must be clear, definite, and explicit, with terms that are certain. Option D specifies a clear offer with a definite price and item.

Question 3

Which of the following is not an example of a contract?

Accepted Answer

A written promise to give your husband a ring for Christmas is not considered a contract because it lacks consideration, a key element of a contract. This is a personal gift rather than a legal agreement with mutual obligations.

Question 4

If an offeror makes an offer that states, "This offer to be open until noon tomorrow," which of the following does not, in law, end the offer?

Accepted Answer

An inquiry by the offeree asking if the offeror can do any better is not a rejection of the offer but rather a request for more information, and does not legally terminate the offer.

Question 5

Which of the following is an ingredient necessary to form a contract?

Accepted Answer

Capacity is a necessary ingredient for forming a contract because it refers to the legal ability of a party to enter into a contract. This includes being of a certain age (usually 18 or older) and having a sound mind.

Question 6

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 $4000 to help: five hours working per day, for five days 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.)

Accepted Answer

DE: For an offer to be held open for a specific period, consideration must be given for the option. This means Sam would need to provide something of value to Jon in exchange for Jon's promise to keep the offer open until a specific time.D: If the court deems mail as a reasonable method of acceptance given the circumstances, then the contract is formed at the place where the acceptance is dispatched. In this case, if Sam sends his acceptance by mail from Edmonton, the place of contract would be Edmonton.

Question 7

An ad in the morning newspaper read "Absolutely the best offer anywhere in Calgary. We'll give you a StarSystem tablet/laptop with a Roland PR-1011 wi-fi printer for only $1299!!! Pick it up today." This is an example of which of the following?

Accepted Answer

An advertisement is generally considered an invitation to treat, meaning it invites customers to make an offer to purchase, rather than being an offer itself.

Question 8

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

An option contract in real estate gives the buyer the exclusive right, but not the obligation, to purchase the property within a specified period. The $1000 paid is for the privilege of having the option to buy the land at the agreed price within 90 days, not a commitment to purchase.

Question 9

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

Accepted Answer

In a unilateral contract, one party makes a promise in exchange for an act by another party. Option C is an example of a unilateral contract because the reward is offered to anyone who returns the lost dog, and the contract is completed when someone performs the act of returning the dog.

Question 10

Why is the case of Dickinson v. Dodds important?

Accepted Answer

Dickinson v. Dodds (1876) is significant because it illustrates the nature of an offer, specifically demonstrating that an offer can be revoked before it is accepted, even if the offeror has promised to keep the offer open for a certain period of time. This case clarified that such a promise, without consideration, does not bind the offeror.

Question 11

Which of the following is an offer as opposed to an invitation to treat?

Accepted Answer

C) is an offer because it expresses a clear intention to be bound upon acceptance by someone who performs the condition of finding and returning the lost cat. The other options are invitations to treat, which invite others to make offers but do not constitute offers themselves.

Question 12

Sarah wanted an antique lamp for her 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-Pearson' 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?

Accepted Answer

The negotiation process between Sarah and the shop owner involved several counter-offers, which effectively rejected the original offer. When Sarah finally agreed to pay $95, the shop owner did not accept this late acceptance, thus no contract was formed.

Question 13

Roberts has the chance to buy three adjacent city lots zoned "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 for the replotting, which would be a time-consuming process. If Roberts buys a 60-day option from the seller of the properties for $4000, which of the following would be true?

Accepted Answer

An option contract, such as the one described, gives the buyer (Roberts) the exclusive right to buy the property at a set price within a specified period (60 days in this case), without obligating the buyer to make the purchase. The seller is bound by the contract not to sell the property to anyone else or revoke the offer during this period.

Question 14

Mary bought a new computer and advertised her old computer for $1500. Mr. Jones offered to pay $1000. Mary said no, she wanted $1500. Mr. Jones offered $1250. Mary rejected that and said she wanted $1500, but then said to him, "I withdraw my offer, I've decided to give it to a school and apply for the tax benefit." Mr. Jones said, "All right, I'll accept your offer of $1500." Which of the following is true?

Accepted Answer

Mary effectively revoked her offer to sell the computer for $1500 when she informed Mr. Jones that she had decided to give it to a school instead. Therefore, when Mr. Jones attempted to accept the offer after it was withdrawn, there was no longer an offer on the table to accept, making it impossible for a contract to be formed under these circumstances.

Question 15

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

The answer of When Mr. Adams tells the local Boys'...

Question 16

An ad in the morning paper read: "Brand new Spartan 6s smartphone $349. No payment until January. We make your first payment." This is an example of which of the following?

Accepted Answer

An "invitation to treat" is an invitation for customers to submit offers, rather than an offer itself. The ad invites customers to make an offer to purchase the smartphone.

Question 17

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

Accepted Answer

A newspaper notice offering to pay a reward for the return of lost kittens is not an invitation to treat; it is generally considered a unilateral offer, which can be accepted by performing the requested act (returning the kittens).

Question 18

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

This is an example of a unilateral contract, where Sam promised a reward (consideration) to anyone who performs the task of returning the lost Siamese kittens. Joe, by performing the task, accepted the offer and is entitled to the reward.

Question 19

Berman made a documentary on the life of musician Artie Shaw. Shaw's representative was cooperative and gave her permission to use certain songs if she received proper permission from the copyright holders. The cost of the film was funded by her own savings, a private investor, the Canada Council, the Ontario Arts Council, and deferred salaries and material costs. In March of 1987, the film won an Academy Award as the best feature documentary for 1986. In November of 1987, Shaw's lawyer contacted Berman's lawyer: "... This letter states that Artie Shaw has a 35% profit participation in the motion picture... ." Which of the following accurately sets out the legal position of the parties?

Accepted Answer

Shaw has no claim to a share of the profits because there was no agreement made between the parties that would entitle him to such a share. The cooperation of Shaw's representative and the permission to use certain songs do not automatically grant Shaw a right to profits from the documentary.

Question 20

The owner of a new building wanted four maple trees, 6 metres tall, planted on the north side of the building. Lloyd Landscaper submitted his offer of four 6-metre maples planted for $800. The owner said he would pay $600 for that. Lloyd said, for $600 he would supply four smaller, 5-metre trees. The owner said, "$600 for 5-metre trees plus a Christmas tree for my kids." Lloyd was disgusted and said, "Forget it. I don't need this job." As he was leaving the owner said, "All right, I'll accept your offer of $600 for the 5-metre maples planted." Lloyd kept on walking. Which of the following is true?

Accepted Answer

Lloyd's last offer of four 5-metre maples for $600 was effectively rejected by the owner's counter-offer, which included a Christmas tree. When the owner later attempted to accept Lloyd's previous offer, it was no longer valid because a counter-offer acts as a rejection of the original offer.

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