Question 1

Promissory estoppel applies when, to avoid injustice, a court refuses to enforce a grossly unfair promise.

Accepted Answer

Promissory estoppel applies when a court enforces a promise because one party has relied on that promise to their detriment, not because the promise is grossly unfair. It's about preventing injustice due to reliance on a promise, not about the fairness of the promise itself.

Question 2

Promissory estoppel is also known as detrimental reliance.

Accepted Answer

Promissory estoppel is a legal principle that prohibits a person from going back on a promise that they made to someone else, if that promise was relied upon to the detriment of the person who was promised something. Detrimental reliance is one of the key elements of promissory estoppel, as it involves a person acting on the promise made to them, to their own detriment. So, promissory estoppel and detrimental reliance are related concepts.

Question 3

Acceptance of an offer must be conditional, unequivocal, and legally communicated to be effective.

Accepted Answer

Acceptance of an offer must be unconditional, unequivocal, and legally communicated to be effective. Conditional acceptance is considered a counter-offer, not an acceptance.

Question 4

Acceptance of an offer must be unconditional, unequivocal, and legally communicated to be effective.

Accepted Answer

Acceptance of an offer must meet these three criteria to be considered valid and legally binding. It cannot be conditional, ambiguous, or implied. Additionally, the acceptance must be communicated in a manner that is recognized as legally acceptable, such as by mail, email, or in person.

Question 5

In Caley v. Gulfstream Aerospace the court held that when employees were told a new dispute resolution policy would be imposed on them if they kept working that there was no consideration, so no contract.

Accepted Answer

In Caley v. Gulfstream Aerospace, the court held that the continued employment of the employees was sufficient consideration for the new dispute resolution policy, thus forming a binding contract. The employees' choice to continue working under the new terms was seen as acceptance of those terms.

Question 6

If an acceptance is mailed before a revocation of an offer is received, the acceptance is effective.

Accepted Answer

This is based on the mailbox rule, which states that an acceptance is considered effective as soon as it is dispatched or mailed, regardless of when it is actually received by the offeror. Therefore, if an acceptance is mailed before a revocation of an offer is received, the acceptance is considered effective and a binding contract is formed.

Question 7

Consideration is something of value in exchange for a promise.

Accepted Answer

Consideration is the value exchanged between parties in a contract. It is given by one party in exchange for a promise, act, or forbearance from the other party.

Question 8

In Caley v. Gulfstream Aerospace the court held that when employees were told a new dispute resolution policy would be imposed on them if they kept working that getting to keep working was adequate consideration, so there was a contract.

Accepted Answer

The sentence correctly summarizes the holding in Caley v. Gulfstream Aerospace.

Question 9

Usually, the acceptance of an offer is legally effective when the acceptance is sent.

Accepted Answer

This is known as the "mailbox rule" which states that an acceptance is effective when it is sent, not when it is received by the offeror. However, there are exceptions to this rule such as when the offer specifies a different method of acceptance or when the offeror revokes the offer before receiving the acceptance.

Question 10

Courts will not enforce contracts if the consideration is not "reasonably consistent" with what is received in exchange.

Accepted Answer

Courts typically enforce contracts as long as there is some form of consideration exchanged between the parties, regardless of whether the value is "reasonably consistent." The key factor is that something of value must be exchanged, not the equivalence of the values exchanged.

Question 11

Usually, acceptance of an offer is legally effective when the acceptance is received.

Accepted Answer

Acceptance of an offer is generally considered legally effective when the acceptance is communicated to the offeror, not necessarily when it is received. This is known as the communication rule in contract law.

Question 12

The general rule in contract law is that an acceptance of an offer must be its "mirror image."

Accepted Answer

The "mirror image rule" requires that an acceptance of an offer be an exact match, or mirror, of the offer itself. Any added or changed terms in the acceptance would constitute a counter-offer rather than an acceptance.

Question 13

Consideration involves the right of individuals to be considered to be able to enter into contracts legally.

Accepted Answer

Consideration in contract law refers to something of value exchanged between parties as part of an agreement, not the right of individuals to enter into contracts.

Question 14

In Caley v. Gulfstream Aerospace the court held that when employees were told a new dispute resolution policy would be imposed on them if they kept working that there was no acceptance of an offer, so no contract.

Accepted Answer

In Caley v. Gulfstream Aerospace, the court held that when employees continued to work after being notified of the new dispute resolution policy, their actions constituted acceptance of the offer, thus forming a binding contract. This is based on the principle that continued employment after notification of new terms can signify acceptance of those terms.

Question 15

A signs a contract to buy B's ranch for $900,000 then learns that the true market value is $500,000. There is not adequate consideration, so the contract will not be enforced.

Accepted Answer

The fact that A overpaid for the ranch does not necessarily make the contract void. As long as there was a meeting of the minds and both parties entered into the contract voluntarily and with full knowledge of the terms, the contract will be enforced. Adequate consideration is not based on market value, but rather on whether each party exchanged something of value (e.g. money for the ranch). Unless there was fraud, duress, or mistake, A will be held to the terms of the contract.

Question 16

A legal detriment may be good consideration for a contract.

Accepted Answer

A legal detriment is a promise to do or refrain from doing something that one is legally entitled to do. It can be good consideration for a contract as it involves giving up something of value, which is what consideration is all about.

Question 17

The party who makes an offer can require the acceptance to be communicated in a very specific way or the acceptance is not good.

Accepted Answer

The party who makes the offer can set specific terms for acceptance, including the required method of communication. If the acceptance is not communicated according to the specified terms, it may not be considered valid.

Question 18

A promise not to do something may not be consideration for a valid contract.

Accepted Answer

A promise not to do something can be considered valid consideration for a contract, as long as it involves the sacrifice of a legal right by the promisor, thereby providing value to the promisee.

Question 19

"Unless you say no, then you must buy my car for $5,000," says A. B says nothing. B must buy the car.

Accepted Answer

Silence or inaction cannot be considered as agreement to a contract. Therefore, B is not obligated to buy A's car for $5,000.

Question 20

The acceptance of an offer to form a contract may be communicated in any "reasonable" way and be effective, in most instances.

Accepted Answer

Generally, the acceptance of an offer can be communicated through various means such as email, phone call, text message, letter, face-to-face conversation, etc. As long as the method of communication is reasonable, the acceptance will be considered effective in most cases. However, some contracts may have specific requirements for how acceptance must be communicated and in those cases, those requirements must be followed.

Quiz 10: Contracts