Question 1

Where the expiry date for acceptance of an offer lapses, the offer is no longer alive.

Accepted Answer

A) True 
 B)False

Question 2

The concept that a contract is formed only when a complete offer is unconditionally accepted by the other side forms a fundamental rule in codified law.

Accepted Answer

A) True 
 B)False  False

Question 3

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?

Accepted Answer

A)   A consensus on the parties' rights and obligations has been reached.
B)   A consensus on the terms of the offer between parties was reached.
C)   A complete offer has been extended that is now open to acceptance.
D)   There has been a mutual expression of willingness to do business.E) B) and C)
F) A) and D)

Question 4

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

Accepted Answer

A)   An offer to enter into a contract is an expression of a willingness to do business.
B)   An offer to enter into a contract seeks to facilitate commercial profitability.
C)   An invitation to treat expresses an inclination to form a business relationship.
D)   An invitation to treat is a promise to perform specified acts on certain terms.E) A) and D)
F) B) and C)

Question 5

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

Accepted Answer

A)   acceptance
B)   formalization
C)   consideration
D)   revocationE) C) and D)
F) B) and D)

Question 6

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?

Accepted Answer

A)   Contractual variation supported by pre-existing duties is enforceable.
B)   Where there is consent to a gratuitous variation, it is enforceable.
C)   Contractual variation was supported by consideration, and therefore the variation is enforceable.
D)   Contractual variation unsupported by consideration is enforceable.E) C) and D)
F) B) and D)

Question 7

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?

Accepted Answer

A)   Parties must be informed as to the adequacy of price, as it is usually not open to challenge.
B)   The consideration to be given for each party's duties is the other party's duties.
C)   Parties must pay the price for a promise before they can sue when it is broken.
D)   The traditional perspective that alteration of a pre-existing duty is enforceable.E) A) and B)
F) A) and C)

Question 8

Before a contract can take place, the parties must have reached a consensus as to their respective rights and obligations.

Accepted Answer

A) True 
 B)False

Question 9

Identify the source of a competing analysis of the traditional common law view of unenforceability of a gratuitous promise. Provide a brief explanation of the competing analysis and explain the goal it was meant to achieve.

Accepted Answer

The competing analysis is offered by the...

Question 10

An offer is a conditional promise.

Accepted Answer

A) True 
 B)False  True

Question 11

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

Accepted Answer

A)   the lack of sufficient consideration
B)   the absence of consideration
C)   the lack of adequate consideration
D)   the absence of formalizationE) B) and D)
F) All of the above

Question 12

An offer is automatically terminated when it is rejected by an offeror.

Accepted Answer

A) True 
 B)False

Question 13

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?

Accepted Answer

A)   It ensures the application of the postal rule remains valid across Canada.
B)   It qualifies any witness to the event who can testify to that effect.
C)   A party must be aware it may become bound to contractual obligations.
D)   It satisfies the need for proof that the necessary events occurred.E) A) and B)
F) None of the above

Question 14

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?

Accepted Answer

A)   A phrase indicates the agreement is subject to formal contract.
B)   A contract lacks sufficient consideration for both parties.
C)   A contract lacks adequate consideration for both parties.
D)   A phrase indicates the agreement is subject to its exact wording.E) A) and C)
F) None of the above A

Question 15

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?

Accepted Answer

A)   The doctrine is unavailable as a defence in a lawsuit.
B)   The doctrine is unavailable as the basis for a lawsuit.
C)   The doctrine is unavailable to a person who has made a promise.
D)   The doctrine is unavailable to a person who has broken a promise.E) A) and B)
F) A) and C)

Question 16

Because a court infers an intention to contract, it will also speculate on what the parties would have agreed had they fully completed their negotiations.

Accepted Answer

A) True 
 B)False

Question 17

Identify and briefly define the events that will cause an offer to be taken off the table.

Accepted Answer

Following are the events that will cause...

Question 18

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

Accepted Answer

A)   use words that imply contract formation
B)   have all parties agree on price
C)   enforce a gratuitous promise
D)   form an option agreementE) None of the above
F) A) and B)

Question 19

Use of a seal in a written contract acts as a substitute for the requirement of consideration.

Accepted Answer

A) True 
 B)False

Question 20

Vague commitments involving commercial exchange between parties are invitations to treat because of the lack of specification of the terms or scope of the proposed arrangement.

Accepted Answer

A) True 
 B)False

Exam 6: Forming Contractual Relationships

Where the expiry date for acceptance of an offer lapses, the offer is no longer alive.

Correct Answer
verified

The concept that a contract is formed only when a complete offer is unconditionally accepted by the other side forms a fundamental rule in codified law.

Correct Answer
verified
False

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Before a contract can take place, the parties must have reached a consensus as to their respective rights and obligations.

Correct Answer
verified

Identify the source of a competing analysis of the traditional common law view of unenforceability of a gratuitous promise. Provide a brief explanation of the competing analysis and explain the goal it was meant to achieve.

Correct Answer
verified
The competing analysis is offered by the...
View Answer

An offer is a conditional promise.

Correct Answer
verified
True

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

Correct Answer
verified

An offer is automatically terminated when it is rejected by an offeror.

Correct Answer
verified

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?

Correct Answer
verified

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?

Correct Answer
verified
A

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?

Correct Answer
verified

Because a court infers an intention to contract, it will also speculate on what the parties would have agreed had they fully completed their negotiations.

Correct Answer
verified

Identify and briefly define the events that will cause an offer to be taken off the table.

Correct Answer
verified
Following are the events that will cause...
View Answer

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

Correct Answer
verified

Use of a seal in a written contract acts as a substitute for the requirement of consideration.

Correct Answer
verified

Vague commitments involving commercial exchange between parties are invitations to treat because of the lack of specification of the terms or scope of the proposed arrangement.

Correct Answer
verified

Exam 6: Forming Contractual Relationships

Where the expiry date for acceptance of an offer lapses, the offer is no longer alive.

Correct AnswerverifiedShow Answer

The concept that a contract is formed only when a complete offer is unconditionally accepted by the other side forms a fundamental rule in codified law.

Correct AnswerverifiedFalse

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Before a contract can take place, the parties must have reached a consensus as to their respective rights and obligations.

Correct AnswerverifiedShow Answer

Identify the source of a competing analysis of the traditional common law view of unenforceability of a gratuitous promise. Provide a brief explanation of the competing analysis and explain the goal it was meant to achieve.

Correct AnswerverifiedThe competing analysis is offered by the...View AnswerShow Answer

An offer is a conditional promise.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

An offer is automatically terminated when it is rejected by an offeror.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedA

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?

Correct AnswerverifiedShow Answer

Because a court infers an intention to contract, it will also speculate on what the parties would have agreed had they fully completed their negotiations.

Correct AnswerverifiedShow Answer

Identify and briefly define the events that will cause an offer to be taken off the table.

Correct AnswerverifiedFollowing are the events that will cause...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Use of a seal in a written contract acts as a substitute for the requirement of consideration.

Correct AnswerverifiedShow Answer

Vague commitments involving commercial exchange between parties are invitations to treat because of the lack of specification of the terms or scope of the proposed arrangement.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The competing analysis is offered by the...
View Answer

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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A

Correct Answer
verified

Correct Answer
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Correct Answer
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Following are the events that will cause...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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