1. Martin offered to buy property for $200,000: "Offer to remain open until 5:00 pm Thursday, October 4, 2018". Which one of the following situations will not cause the offer to end?

A Insanity of the offeree before the offer is accepted

B. Martin sells the property to another party before the expiration of the period stipulated and before hearing from the offeree

C. A counter offer from the offeree

D. Death of offeror

E. The offeree has not accepted and the stipulated time has expired.

2 )Indicate the incorrect statement about consideration.

A. In a bilateral contract, the exchange of promises can provide consideration for both parties.

B. The common law holds that consideration must be adequate to ensure that contracts are fair bargains.

C. Consideration is "the price for which the promise (or the act) of the other is bought."

D. In a unilateral contract, the performance of the offeree provides consideration to the offeror.

3)Which of the following is false with regards to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

A. An intention to be legally bound is a necessary element of a contract; without it there is no contract.

B. Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present.

C. The court will presume there is no intent to be legally bound in social situations.

D. Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary.

E. Parties may expressly state their intention to be legally bound in which case the court need not rely on presumptions.

4)Which of the following is false with regard to contract law?

A. If Henry of Vancouver contracts with Carl of Calgary by mail, an important criterion for determining the place of the contract is the place where the offeror lives.

B. An exchange of promises can be consideration adequate to form a contract.

C. To form a contract there must be an offer which is accepted unconditionally.

D. The terms of a contract must be brought to the attention of the offeree before or at the time of contract.

E. If the offeror mails a revocation at the same time that the offeree mails his acceptance, and it is reasonable to accept by mail, the offeror would be bound in contract.

5)If you pay $100 for a 90-day option on property offered at $200,000, which of the following is true?

A. You have bought a 90-day period of time within which you may or may not accept the offer of the land.

B. With the signing of the option agreement, you have entered into two contracts -- a contract for time and another for land

C. You have agreed that you will accept the offer of land within the 90-day period.

D. If you do not exercise the option you can get your $100 back.

E. The seller of the land can revoke the offer of the land any time before acceptance.

6)In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

A. Barry and Mary contracted for the sale and purchase of a boat for the price of $1,200. When the contract was written up the price was incorrectly stated as $1,700.

B. Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract, the ship had sunk and the fish had been lost.

C. Carson and Leno had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Leno.

D. Sarah bought three rolls of wallpaper, but found she had made a mistake; two would have been sufficient.

E. Although the seller said nothing to the buyer about the characteristics of the printer, the buyer bought it, thinking that it would work via WiFi connection. Later, he learned that it did not perform that function

In all but one of the following situations, the contract is frustrated. Identify the exception.

A. Jack contracts with Bill to build a barn on his one acre lot but before the permit is obtained, a new law prohibits barns on less than three acres.

B. Rudolph is due to appear in a local variety theatre which has just been destroyed in a fire of unknown origin.

C. Frank has contracted to ride Emperor, a prize horse in the Canada Day races on July 1, but on June 28 the horse breaks a leg and has to be destroyed.

D. Jerry, a doctor, is due to perform a heart transplant operation on Mary and the night before the surgery his arthritis becomes so painful that he cannot hold a scalpel

E. Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down.