1Judge may add implied terms to a contract to give meaning to the words in the contract.

True

False

2On June 1, the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega's client company. The survey stated that everyone who completed the survey and mailed it back would receive a prize. Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents. On July 14, Sam mailed back his response and eagerly awaited his prize. On July 15, Mega sent out the last prize it had. Sam's response arrived on July 16. It was the 1001^stresponse, and Mega wrote back telling Sam that because all the prizes were gone, he would not be able to have one.

Mega had essentially revoked its offer before Sam accepted.

A valid contract was formed between Mega and Sam.

Mega may assert that silence is not acceptance and Sam did not communicate his acceptance on time.

No contract was formed here as there was no communication of Sam's acceptance before Mega's offer lapse.

Each province has enacted statute law to govern all business contract disputes.

True or false

In contracts between family members, the courts will presume that parties have an intention to enter into a contract.

t/f

An option agreement allows for a contract to remain open for a specified time.

t/f

Which of the following would best satisfy the requirements for a valid offer?

I'll give you $15 for your laptop

I'll give you $300 for your bike and maybe more if it is fast

I'll pay $150 for a laptop, the model is yet to be determined

I'll pay $150 for a printer, the model is yet to be determined

Parties to a contract must intend to create legally binding obligations.

True

False

A contract can exist in either a written, verbal, or implied form.

True

False

Jill has been negotiating the purchase of a speedboat with Sandi for the last two weeks. Two days ago, she emailed Sandi, saying "I won't go any higher than $8,000 and that includes the trailer. Take it or leave it, but that's my final offer." Sandi sent an email the same day that said "I will accept $8,000, but not including the trailer." There is a contract between Jill and Sandi.

True

False

Implied terms in a contract must be clear and not ambiguous.

True

False

An option agreement is enforceable when separate consideration is paid to the offeree.

True

False

International e-commerce contracts are not valid in Canada.

True

False

A contract is formed when there is a meeting of the minds.

True

False

Keeping a contract short is the best way to avoid legal disputes arising from the contract.

True

False

Which of the following statementsisincorrectwith respect to an offer?

It must not contain uncertainties

It must be in writing

It must contain a willingness to be bound

It must contain all major terms

Implied terms are those terms not specifically negotiated by the parties but are implied in the contract.

True

False

From a risk management perspective, contracts do not need to be in writing.

True

False

If you enter into a valid contract that was not in your best interest, the Court will assist you in getting out of the contract.

True

False

Contracts for guarantees are not required to be in writing.

True

Fal

The person receiving an offer is the offeree.

True

False

Alliston enters into an agreement with Berkley that, for $2,000, gives him the right to agree to purchase Berkley's screen printing business within the next 30 days for $50,000. If Alliston decides to buy, they agree that the $2,000 will be the down payment on the purchase price. This agreement is an option.

True

False

In business relationships, the courts will presume that parties have an intention to enter into a contact.

True

Fal

An offer is when both parties understand and agree to the terms of a contract.

True

False

Consideration is the value one is willing to pay or receive for the promise agreed to in an offer.

True

False

Terms of an oral contract are easier to prove in court.

True

False