PART I - VOCABULARY (5 MARKS)

acceptance

defendant

parol evidence rule

agent

discharged

plaintiff

arm's length

electronic agent

privity

breach of contract

Electronic Commerce Act, 2000

promisee

Canadian Charter of Rights and Freedoms

England

promisor

consensual

France

representation

consensus ad idem

gratuitous promise

revocation

consideration

invitation to treat

Statute of Frauds

Constitution Act, 1867

lapse

the agreement

contract

legal capacity

the judge

contract law

minor

tort law

Court of Justice Act

misrepresentation

United States

counteroffer

non-arm's length

void ab initio

damages

offer

voidable

deed

option

When working in a legal office, it is important to use appropriate legal terminology.

Using the words listed in the chart above, select the word (or phrase) that corresponds to each of the following statements.A word or phrase is never used more than once throughout this entire part. You must select the best word (or phrase) even if an argument exists for the appropriateness of another word (or phrase).To answer the questions, insert the correct word or phrase in the appropriate box on the right of the corresponding definition.

DIVISION 2

DEFINITION OR STATEMENT

ANSWER (select corresponding word or phrase from the box above)

1 A truthful statement made to induce someone to enter into a contract.

2 The party that has the burden of proof in a case based on a breach of contract.

3 A contract that is invalid from the beginning.

4 The area of law that on the one hand, tells parties what steps they must take to create nd perform a contract, and on the other hand, sets-out the ramifications if they fail to take those steps.

5 The term used to describe "accepting an offer in part, subject to some or many modifications".

6 The legal relationship that exists between parties to a contract.

7 This occurs to the contract once the parties have performed their obligations under the contract.

8 A meeting of the minds.

9 A promise that lacks consideration.

10 A contract in writing and under seal.

• NATURE OF ACT:
• For each of the following fact situations, a statement or act is in bold lettering.With respect to the act/statement in bold lettering, identify whether the person has made:
• an invitation to treat,
• an inquiry,
• an offer,
• an acceptance,
• a rejection,
• a rejection and counteroffer, or
• or nothing (act has no significance in contract law).

• CONTRACT:
• With respect to the entire fact pattern, indicate if the parties have negotiated a contract based on the "entire fact situation", not just the part highlighted in bold.
• You must first answer if there is a contract.Please clearly indicate if there is a contract (Yes, there is a contract.) or if the fact pattern does not support the existence of a contract (No, there is no contract.)
• You must then justify your answer with a brief explanation.
• Unless noted otherwise, assume all persons are adults and have the mental capacity to contract.

• FORMAT OF EACH ANSWER:

Question # ... (Include the relevant fact pattern.)

Nature of the act highlighted in bold: (Identify the nature of the act in question. - See list above.)

Existence of contract: (Provide an answer and explanation/rationale supporting your answer.)

QUESTION 8:Swanky Cars Ltd advertises for the sale of a used truck for $11,000.00, payable by cash or credit.Marc goes to the store and offers the salesperson $8000 cash for the truck.The salesperson says he can sell it for $9,999.00 cash but cannot go any lower.Marc says he will think about it.

QUESTION 9:Andresa goes with her friends to a new vegan restaurant.They arrive at the restaurant and have to wait 45 minutes for a table. The restaurant is an "up and coming" hot spot.Once seated they are given a menu with several interesting food selections.Andresa orders a kale and cauliflower wrap, with a side order of sweet potato mango soup.The server tells Andresa that they are sold out of both items.Andresa is furious given that she waited 45 minutes for the table.She threatens to sue them for misrepresentation.

QUESTION 10:Marilyn wants to renovate her basement.She asks Modern Home Ltd. if they can replace her carpets, paint the walls and install a fireplace in her basement.Modern Home Ltd.measures Marilyn's basement and tells her they can do the work for $12,000.They want $5000 up front with the balance on completion of the work.Marilyn believes the price is reasonable, given the work involved, but tells the company she will pay $1000 up front, $3000 when they start the work, and the balance on completion.

QUESTION 11:Jean-Luc is advertising used golf clubs and golf bags for sale.The clubs are stored in his garage.His advertisement says he is selling the clubs for $30 to $60 each, depending on the club.The bags sell for $30 to $50.Amahle goes to Jean-Luc's place and looks at the clubs.She selects six clubs which is enough for her to play the game.The following exchange takes place:

Amahle:I'm looking at buying these six clubs, and the blue golf bag.I'll give you $100 for the six clubs and the bag.

Jean-Luc:Those clubs are in great condition.They're worth a lot more.I'll sell the package for $280.

Amahle:Wow, $280 is more than I expected to pay.These are used clubs.I could give you $150.

Jean-Luc:They're really worth more than that.I can sell them to you for $180.They're practically new.

Amahle:Ok.$180 sounds fair.

Jean-Luc then gives her the clubs and bag for the cash.

QUESTION 12:Emily and Bryce are having marital problems.They decide to split-up.They have two kids.Emily wants custody of the kids as often as possible. Bryce also wants the kids as often as possible.The following exchange takes place:

Bryce:You can have the kids 4 days, from Monday to Thursday, and I will take them for 3 days, from Friday to Sunday.

Emily:That makes no sense.I want them on the weekend, as I work in the week.How about you take them from Monday to Thursday, and I will take them for 3 days, from Friday to Sunday.

Bryce:Ok, I see your point.Let's rotate weeks, from Monday to Sunday.You get them next week, and I get them the following week...and so on.Holidays are excluded, and we rotate these on an annual basis.

Emily:That sounds fair.We have a deal.

QUESTION 13:On September 1, Mary and Jane discussed the sale of Jane's motorboat.The following exchange took place.

Jane:I want $12,000 for the boat.

Mary:I am interested in buying a boat, but I need time to consider the matter.

Jane:Time?OK, I'll keep my offer open until September 12^th.You have until that date to make up your mind.

On September 10^th, Mary told Jane she did not want the boat because it was old.She told Jane she was asking too much for the boat. On September 12^th, Mary changed her mind and told Jane she would buy the boat for $12,000.

QUESTION 14:Swanky Cars Ltd sells used cars.Luis goes to the store and sees a nice sports car with a $15,000 price tag.The following exchange takes place.

Luis:Are your prices flexible?

Salesperson:To some extent.What are you offering?

Luis:I can give you $10,000.

Salesperson:The lowest I can go is $13,500, all in.

Luis: Uhm.Ok, I'll buy it for $13,500, all in.

Luis then signs a sales contract and pays for the car.

QUESTION 2:Juan offers to sell his racing bike to Vito for $2000.Benito overhears the conversation and agrees to pay $2000 for Juan's bike. Have Juan and Benito negotiated a legally binding contract?Explain in detail.

QUESTION 6:Marcel inherited a painting from his grandmother. He did not really like the painting and gave it to his friend Christos.Christos really likes artwork.Once Christos got the painting, he had it appraised and discovered that it was an original from a famous, and now deceased, Canadian artist. The painting was valued at over $60,000. Christos felt guilty and offered Marcel $20,000 for the item.Marcel agreed to accept the $20,000.Christos was supposed to pay Marcel this morning but has changed his mind. He no longer wants to pay Marcel any money.Can Marcel successfully sue Christos for breach of contract?Explain in detail.

QUESTION 8:On May 1, 2020, Evan purchased a two-year gaming subscription to Skygrand Gaming.As per the contract, Evan receives a new computer game each month.The games target gaming enthusiast and include various interactive options.Gaming is Evan's favourite hobby.Pursuant to the contract, Evan paid an upfront fee of $240, and was to receive one game per month.As per the contract, the initial payment of $240 is non-refundable.Evan now wants out of the contract and wants his money back.He needs the money for school.Evan is only 17 years old.Is Evan entitled to get out of the contract?Is Evan entitled to a refund? Explain in detail.

QUESTION 10:A week ago, Paul offered to sell his vintage hockey card collection for $1000.The following exchange took place:

Paul: I can sell you the cards for $1000

Ian:That's too much.I'm prepared to pay $300.

Paul:Are you kidding me?These are vintage, mint condition, collectible hockey cards.I can go as low as $950.Consider that a real deal.

Ian:Ok.I'll raise my price to $500.

Paul:Forget it.This is a waste of my time. You're not being serious.I'll sell it to someone else.

Ian:OK.I can offer you $800.

Ian:Forget it.I have decided to save my money.

This morning, after being unable to find another buyer, Paul tells Ian that he will sell the cards for $800.

1. In the above fact situation, has an offer lapsed?If yes, identify the "first" offer that lapsed and the words used that caused the offer to lapse?If no, explain why there is no lapse of an offer.

1. In the above fact situation, is there a revocation of an offer?If yes, identify the "first" person to make a revocation and the words used to revoke the offer?If no, explain why there is no revocation.

• Is there a legally enforceable contract?Explain.