A. When a judge is trying to decide if a contract has been formed, the judge will look for a mutual agreement between the parties, a clear or implied intention to create legally enforceable relationship, and a promise that something of value will be exchanged.

1.This statement is not accurate because it is missing the element of writing.

2.This statement is not accurate because the judge has more discretion than this statement implies.

3.This statement is not accurate because there is a contract as long as both sides agree there is a contract.

4.This statement is an accurate description of the essential elements of a contract

B). I go to the grocery store. When I have what I need, I approach the checkout and wait in line. At that point, in the checkout line, which of the following elements of a contract exist?

1. 1.Offer, acceptance, and consideration.
2. 2.None.
3. 3.Offer and acceptance, but not exchange of consideration.
4. 4.Offer, but no acceptance or exchange of consideration.
5. C).When determining whether a statement is an offer or an invitation to treat, the court will apply
6. 1.An objective test
7. 2.A reasonable subjective test
8. 3.A subjective test
9. 4.The but for test

C. When determining whether a statement is an offer or an invitation to treat, the court will apply

1.An objective test

2.A reasonable subjective test

3.A subjective test

4.The but for test

D. An electronics store is having a sale on large-screen televisions. One of the items displayed has been priced incorrectly. Instead of showing a price of $1400.00, it has been priced at $140.00. You take the television to the checkout and indicate your desire to purchase the item at the advertised price. Does the store have to sell it to you at that price?

1. 1.Yes, because it was the store that made the mistake, not you
2. 2.Yes, because the price was an offer, and you have accepted the offer.
3. 3.No, because consideration has not yet changed hands at the checkout
4. 4.No, because the stated price is not an offer, but only an invitation.

E. Artis sends an email to Bill offering to sell an antique desk for $1450. Bill is familiar with the desk, which he previously inspected in Artis's showroom. Artis says this offer will remain open until January 18th. at 5 p.m. On January 17th, just before Bill starts to draft his email accepting the offer, Bill's phone rings. It is Artis, who says she is revoking the offer because Cathy has purchased the desk for $1600. In this situation, Bill

1. 1.Can successfully sue Cathy for inducing a breach of contract.
2. 2.Is the lawful owner of the desk and can get a court order to take it back from Cathy.
3. 3.Is out of luck
4. 4.Can successfully sue Artis for breach of contract.

F. Richard has offered to sell you his pick-up truck for $9000. You respond by stating that you will pay him $8000 if he includes the set of snow tires and extra rims that you have seen stored in his garage. Your response will legally be considered

1. 1.A partial acceptance of Richard's offer.
2. 2.A revocation by you of Richard's offer.
3. 3.Consideration
4. 4.A counter-offer which kills Richard's offer.

G. In which way can an offeree turn a firm offer (which can be revoked) into an offer that is open for acceptance by the offeree until the designated date?

1. 1.By buying an option.
2. 2.By selling an option
3. 3.By accepting the offer immediately.
4. 4.By counter-offering.

H. Which of the following statements about the nature of the consideration element in contracts is TRUE?

1. 1.Sufficient consideration could be almost anything of value
2. 2.Adequate consideration is always a requirement.
3. 3.Consideration must involve a positive action, rather than agreeing not to do something
4. 4.The consideration from each party should be roughly equal

I. A police officer phones XYZ Rentals Inc. and tells them that she has recovered the stolen property that XYZ had reported missing two weeks before. The officer asks for a $100 donation for the Police Benevolent Fund as consideration for her efforts. The manager of XYZ agrees, but then backs out of the deal after the goods are returned. Which of the following statements best describes the legal recourse available to the police officer in this situation?

1. 1.The officer can successfully sue because all the elements of a valid contract are present.
2. 2.The officer has no legal recourse because she had a pre-existing legal duty, so there was no consideration.
3. 3.The officer has no legal recourse because police officers are limited to criminal law, not civil law.
4. 4.The officer can successfully sue because past consideration is good consideration.

J. Your seventeen-year-old neighbour secured a part-time job in a nearby town and needed a car to get back and forth from work. You agreed to sell him a reliable used car that had been mostly sitting in your driveway since you bought yourself a new hybrid. The youth could only afford to put $800 down on your car, but was prepared to pay you an additional $100 per month, over the next two years. You realized this was a little risky, so you asked the youth's mother to guarantee payment of the outstanding balance of $2400. She has agreed and you have prepared a document signifying this for her to sign. In this situation, the use of a red adhesive seal next to the mother's signature

1. 1.Will overcome the risk of having no consideration flowing directly to the mother in exchange for her promise.
3. 2.Will not create binding contract because a red adhesive seal does not meet the legal requirements for a seal.
4. 3.Is of no legal significance.
5. 4.Will not create binding contract because your agreement was with a minor.

K. Which of the following would most likely ensure that the meaning least favourable to the author will prevail in the court's interpretation of contractual language?

1. 1.An express term
2. 2.The golden rule of interpretation.
3. 3.A literal approach
4. 4.A contextual approach
5. 5.The contra proferentem rule

L. Alanna is a customer service representative for a large bank. Many of her customers are elderly and rely on her for banking advice. In this business environment, which form of incapacity is most likely to arise?

1. 1.Customers who are below the age of capacity.
2. 2.Customers who are intoxicated.
3. 3.Customers who lack statutory authority
4. 4.Customers with mental incapacity.

M. Which one of these contracts would be voidable at the option of a minor?

1. 1.A contract with a sixteen-year-old to purchase a car, with $400 down and twenty-four monthly payments of $200 each
2. 2.A contract between a fast-food restaurant and a seventeen-year-old, part-time employee
3. 3.A contract between a diner and a fifteen-year-old who ordered breakfas
4. 4.A contract with a seventeen-year-old to pay for university courses.

N. Which of the following is the best definition of frustration, as that word is used in contract law?

1. 1.An event that prevents the formation of a contract, even after intense negotiation.
2. 2.A contract that will not be completed because one of the parties has been threatened by the other
3. 3.A contract that is automatically terminated because of changing market conditions
4. 4.An event, beyond the control of the parties, which makes performance of a contract impossible.

O. You have planned for and advertised the grand opening of your new clothing boutique for December 1st. The contractor whom you hired to do the necessary renovations to the building had agreed to complete the entire work by the end of the third week of November. This would give you just enough time to move in and stock the store for the big opening. During the second week of November, the contractor comes to you and insists that the only way the work will be done on time is if he pulls labourers off other contracts he has in the works. He is not prepared to do it unless you pay him an additional $5000. You agree to make the extra payment in order to open on time, but when the contractor demands the money, you will be able to refuse, using a defence of economic duress because of each of these factors except one. Which factor will NOT help your economic duress defence?

1. 1.The contractor was aware, when he demanded the additional payment, that you were vulnerable
2. 2.You did not have time to get legal advice before agreeing to pay extra.
3. 3.You were unable to get another contractor to complete the work at the late date when the contractor demanded the additional payment.
4. 4.ou plan to wait until the contractor has started a lawsuit before raising the issue of economic duress

P. Restrictive covenants in employment contracts

1. 1.Will be enforceable, on public policy grounds, to ensure that employment contracts are upheld
2. 2.Are prohibited by statute.
3. 3.Will be unenforceable, on public policy grounds, if the restrictions are too broad or too long
4. 4.Will not be decided by the courts, but instead referred to the government for public policy consideration.

Q. Which of the following is NOT a way in which a contract can be discharged?

1. 1.Discharge by neglect
2. 2.Discharge by performance.
3. 3.Discharge by agreement.
4. 4.Discharge by operation of law.

R. When Bert sold his bait and tackle shop to Henry, it included a term stipulating that Bert would not open a competitive business in the small resort community where the shop was located for a period of eighteen months. As a result, Henry was shocked when Bert and his son opened a new bait shop right across the road a month later, just as the peak fishing season was set to begin. Henry tried to make his business the preferred destination through the fishing season with sales and advertising, but it was obvious that he had lost substantial income to Bert. Bert had loyal customers among the seasonal residents and tourists. In this situation, Henry

1. 1.Has missed the limitation period and so has lost his right to sue
2. 2.Can expect to be awarded nominal damages
3. 3.Should sue Bert and ask the court for an account of profits from Bert.
5. 4.Is restricted to reliance damages.

S. Smith and Jones LLP was Anastasia's landlord for years. She lives in an apartment located above their law offices. Smith and Jones LLP recently sold the building to Purvis Property Management Limited and notified Anastasia that PPML would be her new landlord. Out of habit, Anastasia mistakenly dropped this month's rent cheque off in the Smith and Jones LLP office and the cheque was cashed by the office administrator. In this circumstance

1. Anastasia's actions would justify PPML in terminating her tenancy
2. Anastasia could recover the money from the law firm because it would be unjust enrichment for them to keep it and restitution is the remedy
3. Anastasia won't have to do anything. PPML could sue Smith and Jones LLP directly to recover the rent
4. The law firm could retain the money because they had done all they could to provide proper notification to Anastasia.

T. What is the legal effect of the discharge of a contract?

1. Discharge provides relief only to the party that has carried out its obligations under the contract.
2. Discharge relieves the parties of their performance obligations, but not their payment obligations
3. Discharge of an old contract is a necessary step before the parties can enter into any new contract.
4. Discharge frees the parties of their contractual obligations