Multiple Choice Questions

1. Which of the following isnot an essential element of a contract?

a. Consensus

b. Consideration

c. Accounting

d. Legality

e. Intention

2. Which of the following isfalse with respect to offers?

a. Must contain all essential terms of the contract

b. Must be a communication of a willingness to be bound

c. Terms of offer must be clear

d. Must not contain uncertainties

e. Must be in writing

3. Which of the followingcannot be used as legal consideration in a contract to which Tom is a party?

a. One dollar promised to Tom.

b. A promise not to sue Tom.

c. A promise to withdraw an existing lawsuit against Tom.

d. A gold wedding ring given to Tom last year. (pass consideration is no consideration)

e. A motorbike promised to Tom.

4. Bobby advertises his luxury wine cooler for sale on "Kijiji" for $999.00. Beatrice contacts him and they end up discussing the wine cooler over the phone. Beatrice offers $600.00. Bobby says no and counters with $900.00. Beatrice says she'll think about it and Bobby says, "OK, you've got 48 hours." But then the next day, Bobby gets an offer from Peter for $800.00 and Bobby says to Peter, "You've got a deal. You can pick it up tomorrow." Bobby phones Beatrice to tell her all this and when she hears it, she says, "Well, I accept your offer of $900.00."

Which of the following is correct?

a. Bobby breached his contract with Beatrice because he did not, as promised, give her 48 hours to decide.

b. Bobby breached his contract with Beatrice because he failed to contact Beatrice before he accepted Peter's offer of $800.00.

c. Bobby is legally entitled to withdraw his offer to Peter because he has received no consideration for it.

d. Bobby does not have a contract with Beatrice because he revoked his last offer before she accepted it.

e. Bobby is legally obliged to sell the wine cooler to Beatrice for $999.00 because of the unilateral contract the advertisement represented.

5. Which of the following is correct with respect to a person who wants to get out of a contract made when he was intoxicated?

a. The law, as it applies to insane people, applies to drunks as well.

b. If Jones can show he had been drinking, he can get out of the contract.

c. If Jones can show that he was drunk he can get out of the contract.

d. Jones can only get out of the contract if he can show that he was drunk and the other person knew it or should have known it.

e. a and d above.

6. Which one of the following can be assigned?

a. The obligation under a plumbing contract to install new pipes

b. The obligation under a contract to repair a roof.

c. The right to sue another person in tort

d. The right to collect money under a contract (someone gets paid instead of gardener)

e. The obligation upon a singer to perform in a concert.

7. Which of the following isnotan accurate example of a binding contract?

a. A verbal agreement to sell your old, malfunctioning refrigerator for twenty dollars.

b. A promise to give your husband a Blackberry when he turns forty. (domestic contract)

c. A promise to deliver one hundred pounds of blueberries to your friend, Jack, if he pays you $75.

d. Your verbal agreement with Jockstone Company Ltd. to start work for it thirty days from today.

e. Your verbal agreement to pay your estranged wife $300 per month for your daughter's maintenance for the next year.

8. Bill contracts with Sheila to build a garage behind her house. The contract price is $20,000 and this was recorded in writing. During the building process, Bill said he could add a bedroom above the garage for another $3000. Sheila agreed, although they did not record their agreement in writing. Bill completed the garage and the bedroom and invoiced Sheila for $23,000. Sheila refused to pay, saying that she changed her mind about the bedroom. Which statement about this transaction is the most accurate?

The contract regarding the bedroom addition is

a. unenforceable because it is not in writing.

b. voidable because of mistake of fact.

c. not binding on Sheila because there was no consideration for it.

d. binding on Sheila because there was consideration for it.

e. binding on Sheila because, while consideration flowed from Sheila to Bill, none flowed from Bill to Sheila.

9. To which one of the following contracts would the Sale of Goods Actnotapply?

a. Sale of an empty lot in the middle of a city (sale of goods act does not apply to land)

b. Hamburger at McDonald's

c. Future goods not yet manufactured

d. Sale of artwork

e. Sale of a tractor

10. Which one of the following is not a civil remedy for fraudulent misrepresentation?

a. Punitive damages

b. A fine or imprisonment

c. Monetary compensation in the form of damages

d. Rescission

d. Voiding the contract