Question 1

Distinguish between an offer and an invitation.

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Question 2

When is an offer incapable of being revoked?

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Question 3

"For a contract to be binding,both parties must have a clear understanding of all the terms of that agreement." Discuss the accuracy of that statement.

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Question 4

Harry saw Joe in his classic Buick at a local drive-in restaurant and talked about wanting to buy it.Joe offered to sell it to him for $1500.Harry said he needed some time to think about it and that he would send him a letter.The next day,Joe changed his mind and mailed Harry a letter of revocation.The day after that,before Harry had received the letter of revocation,he sent a letter of acceptance to Joe.The next day the two letters arrived at their various destinations,Joe receiving Harry's letter of acceptance just after Harry received Joe's letter of revocation.Explain the legal liabilities of the parties.

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Question 5

Jones was a caterer; Smith was a florist.Jones won a contract to provide a banquet for a convention of florists.He wanted to decorate the hall with flowers.He sent a letter to Smith,describing what he wanted and asked for a price quote.Smith responded by a letter dated January 5,offering to supply the flowers for $5000.Jones received the letter on January 10 and responded on the same date,saying his price was too high and that he would pay $4500.While that letter was in the mail,but before it had been received by Smith,Jones learned that the convention was on artificial flowers and the organizers wanted no real flowers on display.On January 13,Jones quickly sent another letter telling Smith to ignore the letter of January 10 and that he wouldn't need any flowers at this time.This letter of the 13th was received on the 18th.Smith had received the letter of January 10 on January 15 and sent his letter of acceptance on the same day,and had placed orders to his suppliers for the flowers.The letter of acceptance was received by Jones on January 20.Is there a contract between Jones and Smith? Explain.

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Question 6

Joe offered to sell Harry his car for a specific price,and Harry indicated that he needed some time to think about it.Two days later,Joe sold the car to a third party.That afternoon Harry phoned up and told Joe that he decided to accept the offer and that he'd buy the car.Joe told him that it was too late; he had sold it to someone else.Harry said that it was offered to him first,and he insisted that he go through with the contract.Explain the legal liability of the parties.

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Question 7

Indicate how consumers are protected in standard form contract situations.

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Question 8

Is an "agreement to agree" binding?

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Question 9

Explain the nature of the postbox rule.

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Question 10

Sam had been a friend of Joe's for a considerable period of time and had often accompanied him as he sailed his classic yacht.Sam had often communicated to Joe how much he would like to have it.On Friday night,a friend told Joe that Sam had suffered some business reverses and was going to have to get rid of the yacht.Joe immediately wrote Sam a letter offering to purchase the yacht for $25 000.Unknown to Joe,Sam had written Joe a similar letter offering to sell the yacht for $25 000.These two letters had passed in the mail.Joe received Sam's letter about 12 noon on Saturday,and Sam received Joe's letter about 2:30 p.m.on Saturday.Are these people bound in contract? Explain.

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Question 11

What are the ways in which an offer can come to an end prior to acceptance?

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Question 12

Joe offered to sell Harry his car for $500,but Harry said he needed some time to think about it.A couple of days later,Harry phoned back saying that he'd give Joe $450 for the car.Joe refused to take this.Then Harry said,"All right,I'll accept your offer for $500." Joe said that he'd changed his mind and refused to go through with the deal.Harry sued.Explain Joe's legal liability.

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Question 13

Joe offered to sell Harry his car for $500.Harry responded by saying,"I accept,providing you install a new radio in that car." Explain the legal relationship between the two parties.

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Question 14

What is quantum meruit?

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Question 15

"A good example of an offer is goods placed on the shelves in a self-service merchandising situation,so long as they are clearly marked in price." Explain the accuracy of that statement.

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Question 16

Mary received a non-solicited selection of compact discs in the mail,with a letter informing her that she was now a member of the CD of the month club.It also said that if she didn't want these CDs,she could simply send them back; otherwise,she would be billed $10 for each CD at the end of the month.She simply put them away,and did not respond.They continued to send her more CDs each month until she had received 100 of them over a period of 10 months.The club then sent her a letter demanding payment; otherwise,they would take legal action.Explain her legal obligation in these circumstances.

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Question 17

What must be present in an offer before it qualifies as such?

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Question 18

Harry saw Joe in his classic Buick at a local drive-in restaurant,and told Joe that he'd like to buy it.He offered him $1500.Joe said he had to think about it and that he'd let Harry know.Two days later,Joe decided that he needed the money and couldn't afford to keep the car.He wrote Harry a letter accepting his offer and mailed it that afternoon.The next day,Harry phoned telling Joe he'd changed his mind and that he needed the money for something else.Joe told him about the letter,and in fact Harry received the letter that day after the telephone conversation in which he attempted to revoke the offer.Joe insisted on going through with the deal.Explain the legal liability of the parties.

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Question 19

Mo drove his car to a shopping mall and parked it there to attend a movie.The place where he parked was designated as a one-hour parking space on a sign at the entrance where Mo drove in.There were many similar signs around the shopping mall stating that people were parking their cars at their own risk.But this particular sign said that the time limit for parking there was one hour,and as a term of the contract anyone parking over this one-hour limit would have to pay a fee of $60.When Mo got out of the movie,he found a ticket on his car (a demand for payment of the $60).He refused to pay and was sued.What would be Mo's defence in these circumstances?

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Question 20

Joe offered to sell Harry his car and agreed to hold the offer open for one week,expiring Saturday at noon.The following Sunday,Harry phoned Joe to tell him that he decided to accept his offer and purchase his car.Joe said at that time that he had decided to keep the car and was just about to phone Harry to revoke the offer.Harry said,"Too bad," and demanded performance of the contract.Explain the legal responsibilities of the parties.

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Quiz 6: The Elements of a Contractconsensus and Consideration

Distinguish between an offer and an invitation.

When is an offer incapable of being revoked?

"For a contract to be binding,both parties must have a clear understanding of all the terms of that agreement." Discuss the accuracy of that statement.

Indicate how consumers are protected in standard form contract situations.

Is an "agreement to agree" binding?

Explain the nature of the postbox rule.

What are the ways in which an offer can come to an end prior to acceptance?

Joe offered to sell Harry his car for $500.Harry responded by saying,"I accept,providing you install a new radio in that car." Explain the legal relationship between the two parties.

What is quantum meruit?

"A good example of an offer is goods placed on the shelves in a self-service merchandising situation,so long as they are clearly marked in price." Explain the accuracy of that statement.

What must be present in an offer before it qualifies as such?