Law Ch 6

Front 1

Which of the following would a court require a disputed agreement to clearly evidence in order for it to be deemed an enforceable contract?

Back 1

a consensus as to each party’s rights and obligations

Front 2

Thomas gave Jerron his final sales pitch, offering 10 percent off the list price, 60 days for payment, a delivery date, and delivery terms. What has happened so far at this point in the negotiation process?

Back 2

A complete offer has been extended that is now open to acceptance.

Front 3

Sometimes a contract is drafted in such a way that it fails to clearly and precisely express the essential terms of the offer. Which of the following would have the greatest influence on a court’s willingness to interpret such an offer and resolve uncertainties?

Back 3

evidence of a clear intention of the parties to create legal relations

Front 4

What is the difference between the communication of an invitation to treat and the communication of an offer to enter into a contract?

Back 4

An invitation to treat expresses an inclination to form a business relationship.

Front 5

Madeline, a garment buyer, left Lance with her business card and a clear impression she was very interested in his line of fashion products. Which of the following is the element that would qualify Madeline’s communication as an offer to treat?

Back 5

Qualification is dependent upon an objective assessment of the orator’s intent.

Front 6

A consumer conducting business with a bank must accept the standard set of terms expressed in the loan agreement, even though those terms are non-negotiable and typically favour the bank. Why would a modern-day court most likely continue to uphold these contractual “take it or leave it” arrangements?

Back 6

the law expects people to take care of themselves

Front 7

Which of the following would distinguish an invalid offer from an offer in law?

Back 7

a suitably broad, clear, detailed offer that readily facilitates acceptance

Front 8

What is the meant by the statement that an offer extended by one party to another can be accepted only if it is “alive?”

Back 8

that the offer must be available for acceptance

Front 9

On April 2, Tundra Outfitters Ltd. received an offer to purchase from Lakeview Resorts Inc. Lakeview sought 35 canoes for a May 30 delivery, at $300 per canoe. The offer specified acceptance was to be by fax, received by 4:00 p.m. on April 5. Tundra did not reply. Why would a court consider that no agreement had come into existence?

Back 9

The offer is missing because it is no longer alive.

Front 10

Which of the following reflects one of the aims of Canada’s new anti-spam legislation known as CASL?

Back 10

Sending commercial electronic messages, unless the recipient has consented to receiving them, will be prohibited.

Front 11

Which of the following is NOT an example of an invitation to treat?

Back 11

a lost and found advertisement

Front 12

On Tuesday, Jatelle offered to sell one of her racing motorcycles to Rofan for $8000. Rofan said he needed time to consider her offer. On Friday morning, Jatelle sent Rofan an e-mail message advising the offer was no longer open. Which of the following actions would allow Rofan to try to complete the purchase of her motorcycle?

Back 12

present Jatelle with an offer to buy the motorcycle

Front 13

What is meant by the term “firm offer”?

Back 13

a promise to keep an offer alive for a set period of time

Front 14

How would one avoid the application of the rule established by Dickinson v. Dodds [1876] 2 Ch.D. 463 (C.A.)?

Back 14

form an option agreement

Front 15

What is a defining characteristic of an option agreement?

Back 15

It prohibits a lapse of the original offer prior to a time set for acceptance.

Front 16

What distinguishes the lapse of an offer from the rejection of an offer?

Back 16

Acceptance has not occurred when an offer lapses.

Front 17

What common distinguishing characteristic may be attributed to both an option agreement and a counteroffer?

Back 17

Both form a separate contract that may or may not lead to the acceptance of an offer.

Front 18

An offeror has specified the method of communication to be used by the offeree when accepting the offer. What principle would a court apply to determine whether acceptance had been perfected?

Back 18

The offer cannot be accepted by another method of communication.

Front 19

In the case of R. v. Ron Engineering & Construction Ltd. [1981] 1 S.C.R. 111, the Supreme Court of Canada reformed the legal structure concerning the tendering process in Canada. What did the Supreme Court state would form an element of the reformed legal structure?

Back 19

The call for tender offered a preliminary contract called Contract A.

Front 20

Why is it important for the parties involved in contractual negotiations to know that an offer has been rejected?

Back 20

The offer is automatically terminated upon rejection by the offeree.

Front 21

Albert’s mother signed a three-month listing agreement with a real estate agent. Prior to considering or accepting either of two below-listing-price offers the agent brought to Albert’s mother, she suffered a fatal stroke. What would a judge likely decide if the agent andor the offerees attempt to legally force the mother’s estate to accept one of the offers?

Back 21

that the deceased party cannot personally perform, hence her offer also died

Front 22

Karl, Robin’s champion male German Shepherd, has been missing for two days. Robin posted an offer of a $1,000 reward for Karl’s return throughout the two-kilometre radius surrounding his home. What is the correct legal term for the type of contract Robin has offered to enter into?

Back 22

a unilateral contract

Front 23

In his decision, Lord Wilberforce stated, “No universal rule can cover all such cases; they must be resolved by reference to the intention of the parties, by sound business practice and in some cases by a judgment of where the risks should lie....” What legal rule did Lord Wilberforce establish in his ruling on this case?

Back 23

the postbox rule

Front 24

What is the purpose of the practical application of the rules governing the acceptance of an offer, which has been upheld in a number of decisions of the Canadian courts?

Back 24

It satisfies the need for proof that the necessary events occurred.

Front 25

With respect to electronic contracting, what solution did the Uniform Law Conference of Canada adopt to provide for the electronic acceptance of an electronic offer?

Back 25

clicking an “I agree” button

Front 26

Under what circumstances would a judge who is determining a remedy to a commercial dispute consider that a contract does not exist even though all of the required elements of reaching an agreement are present?

Back 26

A phrase indicates the agreement is subject to formal contract.

Front 27

What key ingredient must be present in order to distinguish a legally enforceable promise from one that is legally unenforceable?

Back 27

consideration

Front 28

Which of the following would immediately let you know that a promise is gratuitous?

Back 28

the absence of consideration

Front 29

What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?

Back 29

The innocent party must agree to a “price” for the defendant’s promise.

Front 30

Gandrel received an offer to purchase on his home. The offer provided for the payment of the asking price but required Gandrel’s new appliances and riding lawnmower to be included in the purchase price. Does Gandrel’s offer to sell his home still have legal substance?

Back 30

Yes, it forms the basis of the purchaser’s counteroffer.

Front 31

Which of the following is strongly linked to the contractual requirement of consideration?

Back 31

the idea of freedom of parties to bargain

Front 32

Caroline agreed to purchase organic hemp fabric from an Ontario manufacturer. While making an inquiry to purchase organic dyes from a Manitoba producer, she learned they offered a superior organic hemp fabric at a much lower price than the Ontario manufacturer. Knowledge of what legal principle would immediately let Caroline know she made a costly error?

Back 32

Parties must be informed as to the adequacy of price, as it is usually not open to challenge.

Front 33

In what way are a contractual promise and a contractual obligation similar?

Back 33

Both represent a pre-existing duty.

Front 34

A cancer hospital asked its privately owned medical isotope source to arrange an earlier shipment of an urgent order. The private supplier confirmed an earlier shipment was possible for a 30 percent surcharge on the contractual price. Because the hospital’s cancer patients needed the isotopes desperately, the hospital faxed a written acceptance of the varied terms. The hospital subsequently refused to pay the price increase. What would a New Brunswick court hearing the ensuing dispute be most likely to determine?

Back 34

Contractual variation was supported by consideration, and therefore the variation is enforceable.

Front 35

Why is placing a seal beside the signature of a guarantor who signs a guarantee still enforced in modern-day Canadian society?

Back 35

Absence of the seal suggests an absence of the acceptance of a firm offer.

Front 36

What is the meaning of the statement “Promissory estoppel may be used as a shield and not as a sword” with respect to the classical application of the common law doctrine of promissory estoppel?

Back 36

The doctrine is unavailable as the basis for a lawsuit.

Front 37

Which of the following would provide a party with an excellent chance of relying on the doctrine of promissory estoppel in a common law court?

Back 37

the absence of undue pressure to alter contractual rights

Front 38

Recent legislation in some provincial jurisdictions overrides the common law that governed the acceptance of a payment of a lesser amount in full satisfaction of a debt. What is the policy rationale for the legislation?

Back 38

to promote the settlement of debts on a final basis

Front 39

What is the proper method of leading contrary evidence to challenge a legal presumption favouring one party?

Back 39

a rebuttable presumption of the parties’ intent to contract

Front 40

Why would members of a family experience an uphill battle in a common law court with respect to the enforcement of contractual obligations owed to one another?

Back 40

The law presumes promises between family members are non-contractual.