Paul posted an advertisement online to sell his used boat. His advertisement included his asking price of $5,000, the make, model, size, age, and all other important details. Which of the following statements regarding the advertisement is true?

a) The advertisement is an offer; Paul is not bound until another party accepts the offer.

b) The advertisement is an invitation to treat; Paul is bound if another party accepts the terms.

c) The advertisement is an invitation to treat; Paul is not bound if another party accepts the terms.

d) The advertisement is an offer by conduct; Paul is bound if another party accepts the offer.

Which of the following is an example of undue influence?

a) Richard, aged 40, wants to purchase the family farm from his parents. His parents are in their sixties and the farm has been dormant for a few years. He convinces them to sign a sales contract as the sale would allow them to purchase a property by the lake for them to enjoy while still mentally and physically fit.

b) Karen and her husband live in a house that Karen inherited from her parents. Karen volunteers for an environmental group and is financially dependent on her husband. As her husband asked her to, she agreed for her home to be collateral on a loan made to her husband's business.

c) Jin and Abbey entered into a valid contract for the provision of professional services. Jin provided the professional services as agreed; however, Abbey did not pay her. Jin threatens to sue Abbey to collect the funds she is owed.

d) Frank is desperate for a loan as he is late on his mortgage payments and needs funds before the bank forecloses on his house. A private lender agrees to lend Frank the funds at an annual interest rate of 30%.

James purchased a vehicle through a loan from the Central Bank. After James owned the vehicle for three months, he missed two payments. The bank advised James that if he did not make the missed payments immediately, they would repossess the vehicle. James was outraged and objected on the basis that he only missed two payments. The bank referenced a standard clause in the loan agreement that permits the bank to repossess the vehicle if any payments were missed. James then reviewed the agreement for himself. Although he knew the vehicle served as collateral for the loan, he was unaware how many missed payments would permit the bank to repossess his vehicle. He had not read the contract in its entirety when he purchased the vehicle as the contract was lengthy and he was in a hurry to take delivery of his vehicle. Which of the following statements best describes the validity of the contract?

a) The contract is void because of a shared mistake. James and the bank had not agreed on the terms of the loan.

b) The contract is voidable because of a one-sided mistake. James was unaware of the details of the clause that permitted the bank to repossess the vehicle.

c) The contract is valid. James agreed to the terms of the loan agreement as he accepted the loan proceeds.

d) The contract is voidable on the basis of non est factum. James was unaware of the clause and agreement he entered into with the bank.