Q1. When and where is an acceptance effective and accomplished? 6 marks

1. In the case of post-box rule:
2. In the case of unilateral contract:
3. In the case of e-mail or fax:

Q2. Multiple choice questions: 1x10 = 10 marks

1. Andrew offered to buy property for $300,000: "Offer to remain open until 6:00 pm Thursday, January 22, 1995". Which one of the following situations will not cause the offer to end?
2. Insanity of the offeree before the offer is accepted.
3. Andrew sells the property to another party before the expiration of the period stipulated and before hearing from the offeree.
4. A counteroffer from the offeree.
5. Death of offeror
6. The offeree has not accepted, and the stipulated time period has expired.

1. If you pay $100 for a 90-day option on property offered at $200,000, which of the following is true?
2. You have brought 90-day period of time within which you may or may not accept the offer of the land.
3. With the signing of the option agreement, you have entered into two contracts - a contract for time and another for land.
4. You have agreed that you will accept the offer of land within the 90-day period.
5. If you do not exercise the option, you can get your $100 back.
6. The seller of the land can revoke the offer of the land any time before acceptance.

1. When the courts find that undue influence is present the resulting contract is:
2. Voidable
3. Void
4. Unenforceable
5. Binding
6. Illegal

1. With regard to the law governing privity of contract and assignment, which of the following is false?
2. The privity of contract rule states that only the parties to the contract have rights and obligations under the contract.
3. Assignments are modifications of the privity of contract rule since they do not allow a stranger to the contract to receive the benefits from the contract.
4. A statutory assignment is easier to enforce than an equitable assignment.
5. A party to a contract for services can assign both his contractual obligations and his contractual rights.

1. Which of the following is false regarding contract law?
2. An exchange of promises can be consideration adequate to form a contract.
3. To form a contract there must be an offer which is accepted unconditionally.
4. A contract for a $50,000 boat does not have to be evidenced in writing to be a valid contract.
5. A contract for the sale of land is required to be evidenced in writing.
6. In all but one of the following situations, the contract is frustrated. Identify the exception
7. Jack contracts with Bill to build a bran on his one-acre lot but before the permit is obtained a new law prohibits barn on less than 3 acres.
8. Rudolph is due to appear in a local variety theatre which was just been destroyed in a fire of unknown origin.
9. Frank has contracted to ride Emperor, a prized Horse in the Canada Day races on July 1^st, but on June 28^th the horse breaks a leg.
10. 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 can not hold a scalpel.
11. Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down.

1. We have the legal rule that "it takes a contract to end a contract". Which of the following would not meet this requirement?
2. Mutual waiver
3. A written statement by one party saying that "the contract is cancelled".
4. A condition subsequent is met.
5. Watson had contracted with Holmes to do some research. Watson asked to call it off and Holmes agreed before either had performed under the contract.

1. Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree.
2. True
3. False

1. Which of the following is a definition for consideration?
2. Being cordial in the negotiation of contracts.
3. Refraining from unethical behaviour in the negotiation of contracts.
4. Being cordial and refraining from unethical behaviour in the negotiation of contracts.
5. The bargained-for exchange

1. Which of the following consists of an offer by one party and an acceptance of terms by the other party?
2. Legal object
3. Agreement
4. Alliance
5. Concurrence

Q3. What is the significance of an assignment being "statutory" rather than merely an "equitable" assignment? 4 marks

Q4. Explain the term: 5 marks

1. Void and Voidable contract
2. Promissory estoppel and its importance

Q5. Short case: 10 marks

Hix v. Ewachniuk, 2010 BCCA 317 (CanLII)

Mrs. Ewachniuk had a son and two daughters. In 2006 at the age of 90 she died leaving a $2 million estate. In 2004 she had changed her will and left everything to her son. He had once practiced law and drew up the will for her and had it executed. Prior to this she had left her estate to be divided equally between her three children. The two daughters brought this action challenging the will. What would be the basis of their argument and the likely outcome? Would your answer be any different with the knowledge that the son had been responsible for preserving the family fortune from serious tax problems back in the 1960, and it was this fortune that had supported Mrs. Ewachniuk and her deceased husband over the years? There was no evidence of anything happening in the years immediately prior to the changed will that would have given her a reason to change it.