Consensus can be implied. requires both parties to give up something of value. can be found if the parties believe they are discussing different transactions. must be in writing. requires both parties to be able to understand the nature of the contract. 2. Choose the incorrect statement from the definitions below. A parol contract is a probationary agreement. A simple contract may be oral or written but is not under seal. An implied contract is inferred from the conduct of the parties. An express contract is one in which the parties have expressly stated their agreement, either orally or in writing. A formal contract is one that is sealed by the party to be bound. 3. Which of the following may not result in a contract? Accepting a counter-offer Mailing of an acceptance to an offer made through the mail, where the acceptance is mailed before a letter revoking the offer is received Accepting a contract through the mail where the offer, open for a week, was made in person Mailing of an acceptance to an offer made through the mail, where the offer was communicated by email Mailing of an acceptance to an offer made through the mail, where the acceptance is never received by the offeror 4. In what of the following situations is there adequate consideration? A promise to stop annoying another A promise to stop bothering someone A promise to love someone forever A promise to be a good friend A promise to pay $50 5. What of the following statements is false? Value of consideration is best assessed by the persons making the bargain. Courts do not wish to second-guess why businesspeople made the bargain that they did. Value of consideration is best assessed by a judge. Unless there are exceptional circumstances that justify the court's intervention, such as infant contracts or situations of unequal bargaining power, the court should not interfere in the setting of the contract's consideration. Freedom of contract implies freedom to set the amount of consideration. 6. A "meeting of the minds" is required for all contracts. What of the following has a "meeting of the minds"? Neither party believes they have a valid contract but rather an agreement to discuss the matter further. One party does not believe he is bound by the contract. The parties do not agree on a final sale price but agree to all the other details. The parties are not talking about the same property but agree on all other terms. Both parties agree to all the terms but one party has not read the contract. 7. What of the following is a valid subject-to clause? Subject to the consideration being fair Subject to the parties agreeing on a price Subject to the parties discussing the amount of property to be sold Subject to the seller's lawyer finding the offer satisfactory Subject to the sale of the buyer's home 8. Bookseller sends Reader an unsolicited book with an invoice for it. Reader, knowing nothing about Bookseller, ignores both the book and the invoice. Has Reader accepted the book and therefore is obligated to pay the invoice? No. Communication is always required and Reader did not respond. No. Silence is not acceptance when Reader has not used the book. Yes. Since Reader has the book, he must pay the invoice. Yes. Consumers must always pay for goods they receive. No. Silence is never acceptance. 9. What is (are) the main reason(s) a court would refuse to enforce an electronic contract? The customer was not required to acknowledge the terms by clicking "I Agree." The customer did not understand the terms agreed to. The customer did not voluntarily agree to the terms and the terms were unfair. The terms of the contract strongly favoured the seller. The customer did not accept the agreement and the terms were highly unfair. 10. Ted brings his car to a mechanic to fix its engine. Francine, the mechanic, does not give an exact price for the job. After Francine has worked on the car for a week, Ted demands it back and refuses to pay for the work completed. How will the court determine the proper compensation? Determine the amount it will cost Ted to finish the repairs Determine the market value of the parts used to repair the engine Determine a reasonable price for one week's worth of engine repair Use Francine's normal rate times the hours she worked Use the fair market value of the car to determine the value of one week's use