Business Law-Chapter 6-Elements Of A Contract (Consensus And Consideration)

Front 1

An ad in the morning paper read: "Brand new 2011 Ford Focus $19,499. No payment until January 2012. We make your first payment." This is an example of which of the following?

Back 1

Invitation to treat.

Front 2

If you owe Mr. Storr $900 for goods received and Mr. Storr agrees to take $800 in full satisfaction of the debt, which of the following is true?

Back 2

Many jurisdictions have passed legislation preventing Mr. Storr from suing you for the difference if he actually takes the $800.

Front 3

Indicate which of the following is the correct statement about the effect of promissory estoppel on a promisor.

Back 3

Promissory estoppel can be used as a defence only against a promisor who reneges on his promise.

Front 4

Which of the following statements is correct with respect to promissory estoppel (equitable estoppel)?

Back 4

Where Hank and Jim have a contract and Hank releases Jim from part of Jim's obligation, Jim can use that release, even though it was given without consideration, as a defence if Hank sues for breach of contract.

Front 5

Which of the following could not be used as consideration?

Back 5

Work that was done in the past.

Front 6

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

Back 6

Lee, a defendant, can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive Lee some of Lee's legal obligation and Lee relied on that promise.

Front 7

George contracted with Bob to have a racing bike modified for him to be delivered on February 20, 2011, for a race on February 22. The price for the modification was agreed on $100. About February 10, George became nervous about the bike being finished on time and went to see Bob. Bob said that he was very busy, but if he really wanted to be sure that it would be finished on time, George would have to pay him an extra $25 so he could pay his employees overtime. George agreed and Bob completed the modifications as requested, on time. How much does George legally owe?

Back 7

Only $100 because Bob had an existing duty to modify the bike and the price was settled.

Front 8

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

Back 8

A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat.

Front 9

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000 due on February 25, 2012. The company is having difficult times and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements of the law is false?

Back 9

At common law, if the bank accepted the $33,000 as payment in full, even absent additional consideration, it could not later sue for the remainder because such promises are always binding.

Front 10

" Quantum meruit" means:

Back 10

"as much as deserved".

Front 11

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

Back 11

You have bought a 90-day period of time within which you may or may not accept the offer of the land.

Front 12

Sam owed Joe $6,000 due January 12, 2012. On January 1st, Joe said he'd take $5,000 in full satisfaction of the debt if Sam paid him $5,000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1,000 he (Joe) was legally owed. Which of the following is true?

Back 12

Joe would lose because early repayment constituted consideration to support the new arrangement.

Front 13

In Bawitko Investments Ltd. v. Kernels Popcorn Ltd., what did the Court of Appeal hold?

Back 13

A "contract to make a contract" is not a contract at all.

Front 14

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

Back 14

The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate, i.e. fair, even if there is no evidence of fraud, duress, undue influence, or mental incapacity.

Front 15

Which one of the following is enforceable?

Back 15

Mr. Baker was so sick of an old chair that, when Mr. Venson offered him $10 for it, he agreed (i.e., promised to sell it to him), although the market value of the chair was $80.

Front 16

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; she just got into her truck and drove off. On these facts, which of following is true?

Back 16

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.

Front 17

The postbox rule applies when which of the following means of communication is used?

Back 17

Mail.

Front 18

Anmool verbally agreed to build a deck for Nikki for $1,000 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?

Back 18

Nikki owes Anmool $1,000; there is no binding obligation with respect to the additional $200 because Anmool had an existing duty to complete the deck on time.

Front 19

Which of the following is correct with respect to consideration?

Back 19

It must be specific.

Front 20

With regard only to the requirement of consideration, which one of the following would be a binding contract?

Back 20

A promise to give $10 exchanged for a promise to give a can of pop.

Front 21

If a person offers to hold his offer open for a period of time, he can still revoke it before that time if he changes his mind.

Back 21

True.

Front 22

The courts will use quantum meruit to determine what should be paid when a person providing services is not allowed to finish by a breaching party.

Back 22

True.

Front 23

For the postbox rule to apply, the offer must be made by mail.

Back 23

False.

Front 24

The courts may enforce an unfair bargain.

Back 24

True.

Front 25

The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

Back 25

False.