1.

Commercial Credit Corp., located in Nova Scotia, sent a credit offer to Mr. Loser in British Columbia by courier. Mr. Loser accepted the offer, and sent the acceptance by courier. Commercial Credit secured Mr. Losers assets in British Columbia, but failed to properly register a security interest as required in Nova Scotia. Later in the year, Mr. Loser defaulted on his line of credit with Commercial Credit Corp.

If Commercial Credit sues Mr. Loser, will it be able to assert priority over his assets?

		Yes, if Mr. Loser has assets in Nova Scotia
		No, because no valid consideration existed, and hence no contract existed
		No, because the contract was made in Nova Scotia, and Commercial Credit failed to properly register a security in that province
		Yes, because Mr. Loser sent his acceptance from British Columbia, where the contract was created

2.

Donna and Karl were negotiating over the price of a car. Donna stated, I offer my 1965 Mustang to you for $50,000. Karl replied, Well, that seems a bit steep. I offer $40,000 for the Mustang instead. The next day, Karl phoned Donna and said, OK, Im willing to pay $50,000 for the Mustang. Donna refused to sell the vehicle. If Karl institutes an action against Donna, the court will likely find that:

	A.	Karl should win, because both he and Donna agreed to a price of $50,000 for the Mustang
	B.	Donna should win because Karl failed to properly accept her offer, which remains valid
	C.	Donna should win, because her valid offer created a power of acceptance in Karl, which he chose to reject and therefore eliminate with his counteroffer
	D.	Karl should win, because a reasonable person would think that Donna made a serious offer through her conduct

3.

Holly flipped through the local newspaper one day and found a glossy advertisement from a car dealer. The advertisement read, 2006 Chevy Impala for sale - $10,000. Holly realized that this was a great deal and raced to the car dealership. Upon arrival, she ran into the car dealers office and said, I accept your offer and present you $10,000 for the 2006 Chevy Impala. The car dealer refused to honour the advertisement. Holly decided to sue the car dealer for breach of contract. If Holly commences an action for breach of contract, she will:

	A.	win, because Holly reacted with an action to the car dealers promise to sell the Chevy Impala, thus creating a unilateral contract
	B.	win, because the car dealers advertisement in the newspaper constitutes a proper offer, and Holly accepted with the proper consideration
	C.	lose, because although the advertisement was a proper offer, it was not directed specifically to Holly, and therefore she never possessed the power of acceptance
	D.	lose, because the advertisement is not an offer, but an invitation to treat, which means it is an invitation for offers, and Holly never made an offer

4.

Cody and Dan had been friends for years. Cody was the owner of a 1997 Dodge Neon, which Dan offered to buy from Cody on several occasions, but which Cody had never been willing to sell. On Dans birthday, a group of friends, including Cody and Dan, went to the bar. Dan drank heavily and became extremely inebriated. Cody drank a couple of beers but stayed sober. During their conversation Cody said, Dan, as a birthday present, Ive decided to sell you the Dodge Neon for $20,000. And just to make sure that neither of us changes our mind after we both sober up, Ill put it in writing. With that, both Cody and Dan signed the paper napkin. Dan put the napkin in his pocket. The next day Dan gave Cody $20,000 in cash. Cody refused to sell the car, claiming that he had been drinking when he made the offer.

Which of the following facts, if true, would be most helpful to Dan if he commences a lawsuit against Cody?

	A.	The cars fair market value is $20,000
	B.	Dan did not repudiate the contract upon reaching sobriety the next day
	C.	Cody changed his mind before Dan tendered the cash
	D.	Cody was sober when he wrote on the napkin so that he did know of the legal consequences of his act, and that Dan must have known or should have known that Cody was sober and therefore capable of entering into a contract

5.

Brian is a creditor who agreed to take $6,000 from Charlene as full payment of the debt worth $10,000. Assume that Charlene has delivered the payment.

If Brian decides to sue in court for the remaining balance in British Columbia, he will:

	A.	lose because he accepted less than full payment and has actually received the money
	B.	win because Charlenes payment of $6,000 is gratuitous and because Brian never received any consideration for the reduction of Charlenes claim
	C.	win because a contract cannot be modified by the parties
	D.	lose because Charlene made a good faith payment

6.

Brian is a creditor who agreed to take $6,000 from Charlene as full payment of the debt worth $10,000. Assume that Charlene has delivered the payment.

If Brian decides to sue in court for the remaining balance in a jurisdiction that follows strict common law, he will:

	A.	lose because he accepted less than full payment
	B.	lose because if he did not accept the $6,000 as full payment, he would receive nothing
	C.	win because Charlenes payment of $6,000 is gratuitous and because Brian never received any consideration for the reduction of Charlenes claim
	D.	win because a contract cannot be modified by the parties