Contract law case - Group 1

Jason, a recently retired restaurant owner, decides that he no longer wishes to be a slave to technology. Part of his plan to completely disconnect includes a self-imposed ban on the use of cell phones and computers.

Jason makes the decision to move, permanently, to his parents' vacation home in a remote community on a private island located in the middle of a lake on Vancouver island. In keeping with his ban on technology, he places and ad in the classifieds section of the provincial newspaper stating that he is selling his car.

The following ad was published in the weekend edition of newspaper: "2010 Volkswagen Jetta FOR SALE. Car is in excellent working condition and will be sold to the first person who sends me a notice in writing indicating they will buy the car for $4,000. Notices must be sent to the following address: 123 Coney Island, lake Comax, BC VIR 0G4".

On Sunday evening, Jenny, who has yet to pass a driver's test as she is only 15, posts a letter stating that she wants to buy Jason's car for $4,000 on Wednesday morning. It normally takes 1 week for letters that are sent from Vancouver to arrive on Coney Island.

On Monday morning, Jessica, a bartender who used to work with Jason in the restaurant business, sees the advertisement in the newspaper. She recognizes the address as Jason once invited her to visit the vacation home a few summers ago. Late Monday night, after a long evening shift and after she has had one-too-many beers after work, Jessica sends Jason an email (to the email address that he gave her when they first met) stating that she is willing to pay $4,000 for the car. Jason never receives the email, owing to his self- imposed ban on the use of cell phones and computers.

On Tuesday evening, Jason meets his friend Dave for dinner on his family's Private Island. Dave complains how his car is giving him problems and Jason mentions that he is selling his Jetta for $3,500. Dave says that he only has $3,000 to spend on a replacement car. Jason does not want to sell his car to Dave in case the car ends up suffering from mechanical problems, which would then put a strain on their friendship. To make matters worse, Dave suggests that, as part of the "deal", he can give Jason $2,000 in cash and then give him $1,000 worth of stolen goods that Jason knows Dave acquired in a fraudulent transaction with local drug dealers.

Jason was becoming very discouraged as he thought selling his car would be quick and easy .So, he calls his 25-year old niece and tells her: "Look, Candice, you have to buy my car because of all the things I have done for you over the years.... you owe me! I'll give you my car for $3,000". Candice offers her Uncle $2,500 just because she feels pressured to make an offer but she has no intention of buying the car.

Explain, using the principles of contract law, the position of each of the parties involved in this scenario.

1. FT: The outcome of the potential contract between Jason and Jenny will be that:

Select one:

a. The contract would be void owing to the fact that Jenny is a minor

b. The contract would be voidable owing to the fact that Jenny is a minor

c. Adults are bound by their agreements whereas miners are not so Jason is not obligated to do anything

d. The contract is valid

e. The contract is valid as long as a counter-offer specifies that Jenny has an adult guardian sign on her behalf

2. FT: Regarding the potential contract between Jason and Candice, which of the following statement is true?

Select one:

a. Even if all of the required elements (consensus, capacity, consideration, legality, and intention) were present, this contract would be voidable due to undue influence

b. Neither Jason nor Candice had the capacity to enter into an agreement

c. There was no consensus because there was no meeting of the minds

d. The contract would be voided due to duress

3. FT: The potential contract between Jason and Jessica is legal because:

Select one:

a. All the required elements to validate a contract are present in the agreement between Jason and Jenny

b. Neither the subject matter of the contract nor the way in which the deal wouldtake place are illegal

c. The subject matter of the contract is not legal

d. The selling of a car in the manner proposed is not legal

e. Although Jessica did not respond to Jason's offer in the manner requested, her acceptance is still valid

4. FT: Regarding the potential contract between Jason and Candice, which of the following statements is true about legality:

Select one:

a. Neither the subject matter of the contract nor the way in which the dealwould take place are illegal, so the legality element is satisfied

b. the subject matter of the contractor is illegal and this contractwould therefore be considered void due to illegality

c. It is immortal to use undue influence and this contract would therefore be considered void

d. Selling a car is illegal and this contract would therefore be considered void due to illegality

e. All that required element to validate a contract are present in the agreement between Jason and Candice

5. FT: With regard to capacity in the potential contract between Jason and Dave, which statement is true?

Select one:

a. Dave does not have the capacity to enter into a contract with Jason because he is criminal who deals in stolen goods

b. Dave is a certifiably insane and therefore cannot enter into a contract

c. Dave is known bankrupt and is therefore prevented from entering into contractual agreements

d. Dave is a minor and therefore does not have the capacity to contract

e. Dave has capacity to enter into a potential contract with Jason

6. Ft: Consideration is satisfied in the potential contract between Jason and Jenny because:

Select one:

a. Jenny stands to benefit from the deal because she will receive a car in exchange for $4,000

b. Constitution is not relevant because this is not an equitable arrangement

c. Both Jason and Jenny considered the deal before acting on it

d. Jason stands to benefit from the deal because he will receive 4,000 in exchange for his car

e. Both Jason and Jenny traded promises in exchange for something of value

7. FT: The potential contract between Jason and Dave is problematic from the perspective of legality because:

Select one:

a. The subject matterof the contract is illegal

b. All the required elements to validate a contract are present in the agreement before Jason and Dave

c. Needed the subject matter of the contract nor the way in which the deal would you take place are illegal

d. Selling a car is legal

e. it is against public policy to knowingly accept money or goods that were fraudently acquired

8. FT: Capacity in the potential contract between Jason and Jessica is not valid because:

Select one:

a. Jessica is a known bankrupt

b. Jessica iscertifiably insane

c. Jessica does have capacity to enter into the contract with the Jason

d. Jessica is a minor

e. Jessica lacked capacity at the time she attempted to accept the Jason's offer

9. FT: Consideration is satisfied in the potential contract between Jason and Jessica because:

Select one:

a. Concentration fails because $4,000 is not a fair price for 2010 VW Jetta

b. Jason stands to benefit from the deal because he will receive $4,000 in exchange for his car

c. Both Jason and Jessica traded promises in exchange for something of value

d. Both Jason and Jessica considered the deal before acting on it

e. Jessica stands to benefit from the deal because she will receive a car in exchange for $4,000

10. FT: With regard to capacity in the potential contract between Jason and Candice, which statement is true

Select one:

a. Candice has capacity to enter into a potential contract with Jason

b. Candice does not have the capacity to contract because Jason undue influence to force her into an agreement

c. Candice is a minor and therefore does not have the capacity to contract

d. Candice is certifiably insane and therefore cannot enter into a contract

e. Candice is a known bankrupt and is therefore prevented from entering into contractual agreements

11. FT: Consideration is not satisfied in the potential contract between Jason and Dave because:

Select one:

a. Jason stands to benefit from the deal because he would receive $3,500 in exchange for his car

b. Both Jason and Dave discussed promises in exchange for something of value but, in the end, no promises, were made

c. Dave stands to benefit from the deal because he would receive a car in exchange for $3,500

d. Consideration fails because $3,500 is not a fair price for 2010 VW Jetta

e. Both Jason and Dave considered the deal before acting on it

12. FT: In the potential contract between Jason and Dave, the following statement is true about consensus:

Select one:

a. In a conversation between the offeror and offeree, there was a meeting of the minds as well as valid offer

b. This is a case of an invitation to treat as it involves a bilateral agreement between the two parties

c. There is no valid offer and acceptance between Dave offers fradulen bonda as part of his payment

d. There is no valid offer and acceptance as Dave's counteroffer negates Jason's original offer of selling his car to him for $3,500

e. The back-and-forth negotiation between the two parties satisfies the requirement for consensus

13. FT: Consideration is not satisfied in the potential contract between Jason and Candice because:

Select one:

a. Jason stands to benefit from the deal because he would receive $3,000 in exchange for his car

b. Both Jason and Candice considered the deal before acting on it

c. Candice turns to benefit from the deal because she would receive a car in exchange for $2,500

d. Consideration fails because $2,500 is not a fair price for a 2010 VW Jetta

e. Both Jason and Candice discussed promises in exchange for something of value but, in the end, no promises were

14. FT: In the potential contract between Jason and Jessica, the following statement is true about consensus:

Select one:

a. The adin the newspaper is an "invitation to treat" and this is bilateral offer which can be accepted by anyone

b. The postbox rule dictates that Jessica acceptance is consideredvalid on the day that it was sent

c. The required elements for consensus satisfied by Jason's published offer and the fact that just Jessica complied with the condition accepted accordinglyd.consensus fails in this particular case because Jessica is a minor

e. There is no valid offer and acceptance because Jessica responded via email

15. FT: The correct assessment regarding the element of intention in the potential contract between json and Dave is the following:

Select one:

a. Jason does notintend to be found by an agreement with Dave and he has no intention to enter into a legally binding contract with him

b. there is not anything in the scenario to suggest that either party does not intend to be bound by the agreement

c. Neither Jason nor Jessica intend to be bound by the agreement as they do not understand the consequences for breaching the agreement

d. Jessica does not intend to buy a car as she does not have a valid driver's license

e. Intention is negated because Jessica lacks capacity

16. FT: The contract assessment regarding the element of intention is in the potential contract between Jason and Jessica

Select one:

a. Jessica does not intend to buy a car as she does not have a valid driver's license

b. There is not not anything in the scenario to suggest that either party does not intend to be bound by the agreement

c. Neither Jason nor Jessica intend to be bound by the agreement as they do not understand the consequences for breaking the agreement

d. Jason does not intend to be bound by the agreement with Jessica

e. Intention is negated because Jessica lacks capacity

17. FT: The potential contract between Jason and Jenny is legal because:

Select one:

a. The selling of a car in the manner proposed is not legal

b. The subject matter of the contract is not legal

c. Neither the subject matter of the contract nor the way in which the deal would take place are illegal

d. All the required elements to validate a contractor present in the agreement between Jason and Jenny

e. The selling of a car to a minor who has yet to pass a driver's test does not go against public policy

18. FT: In the potential contract between Jason and Candice, the following statement is true about consensus:

Select one:

a. The back-and-forth negotiation between the two parties satisfies the requirement for consensus

b. There is no valid offer and acceptance as Candice counteroffer negates Jason's original offer of selling his car

c. Consensus fails in this case because Jason uses duress to pressure Candice into an agreement

d. In a conversation between the offeror and offeree, there was meeting of the minds as well as a valid offer

e. Consensus fails in this case because Candice had no intention of buying her uncle's car

19. FT: The correct assessment regarding the element of intention in the potential contract between Jason and Jenny is the:

Select one:

a. Intention is negated because Jenny is a minor

b. There is not anything in the scenario to suggest that either party does not intend to be bound by the agreement

c. Jenny does not intend to buy a car as she is not old enough to drive

d. neither Jason nor Jenny intend to be bound by the agreement as they do not understand the consequences for breaching the agreement

e. Jason does not intend to be bound by an agreement with a minor

20. FT: In the potential contract between Jason and Jenny, consensus is established because:

Select one:

a. The post box rule dictates that Jenny's offer is considered accepted the day that it was posted

b. There is no valid offer and acceptance because Jenny responded by writing a letter

c. consensus fails in this particular case because Jenny is a minor

d. the required elements for consensus are satisfied by Jason's published offer and the fact that Jenny complied with the condition accepted accordingly

e. The ad in the newspapers is an "invitation to treat" and this is a bilateral offer which can be accepted by anyone