USE THIS INFORMATION FOR THE NEXTTHREEQUESTIONS:

Rosa is furious because the new municipal tax rates have just been announced and she'll be paying an additional $200 in city taxes this year.

Enraged by the news, Rosa yells "I've had it! I'll sell my house to the first person who gives me $100,000."

Rosa's dentist, Gill, is walking by and hears Rosa's announcement. Gill says "I accept." Rosa and Gill both laugh.

Gill then says "If you're really thinking of selling your house, I'd be interested in buying."

Rosa says "Well, I had been thinking about it lately. At any rate I'd want a lot closer to $450,000 for it, so you're probably not really interested."

Gill replies "Well, I might go as high as $450,000 but I'd want a house inspection."

Rosa says"I would accept that offer but I'd have to ask my partner if she'd agree to it as well."

Gill and Rosa agree to discuss the deal the next week.

The next week Rosa says to Gill "We accept your offer to purchase our house!"

Gill looks sad and says "I'm sorry Rosa, but the bank won't lend me the money so I'll have to decline your offer."

Rosa is furious with Gill and says "We had a deal!I'm going to sue you for breach of contract!"

Which of the following statements is FALSE:

Question 1:

A)

When Rosa said "I've had it! I'll sell my house to the first person who gives me $100,000" and Gill says "I accept" - all the necessary elements of contract have been met and there is an enforceable contract for the sale of the house.

B)

When Rosa said "I've had it! I'll sell my house to the first person who gives me $100,000" and Gill says "I accept" - no contract is formed because there is a problem with contractual intention.

C)

When Rosa said "I've had it! I'll sell my house to the first person who gives me $100,000" and Rill says "I accept" - no enforceable contract is formed because there is a problem with the form of the contract.

D)

When Rosa said "I've had it! I'll sell my house to the first person who gives me $100,000" andGill says "I accept" - all the necessary elements of contract have been metbut the contract is voidable at Rosa's option because Gill is Rosa's dentist and we presume undue influence in such a close relationship.

Question 2

Consider this excerpt of the exchange between Gill and Rosa (from the previous question):

Gill then says"If you're really thinking of selling your house, I'd be interested in buying."

Rosa says"Well, I had been thinking about it lately.At any rate I'd want a lot closer to $450,000 for it, so you're probably not really interested."

Gill replies"Well, I might go as high as $450,000 but I'd want a house inspection."

Rosa says"I would accept that offer but I can't commit to anything without discussing it with my partner to see if she'd agree to it as well."

The exchange is correctly described in contractual terms as follows:

(Make sure you think carefully about the requirements of an offer and acceptance.)

A)

1. Offer from Gill, 2. Counter Offer from Rosa 3. Counter Offer from Gill 4. Conditional Acceptance from Rosa

B)

1. Invitation to treat from Gill, 2. Offer from Rosa, 3. Counter Offer from Gill, 4. Acceptance from Rosa

C)

1. Invitation to treat from Gill, 2. Invitation to treat from Rosa, 3. Invitation to treat from Gill, 4. Offer from Rosa

D)

Invitation to treat from Gill, 2. Invitation to treat from Rosa, 3. Invitation to treat from Gill, 4. Invitation to treat from Rosa

Question 3

Consider the following exchange related to the previous 2 questions:

When Rosa says to Gill "We accept your offer to purchase our house!"

and Gill says "I'm sorry Rosa, but the bank won't lend me the money so I'll have to decline your offer."

Which of the followingcorrectlydescribes the exchange in contractual terms? (Which of these isTRUE?)

Note: You may have to look back at the previous two questions to answer this one.

Question 23 options:

A)

Rosa makes an offer (sell the house in exchange for $450,000, sale to be subject to a house inspection) and Gill rejects the offer (I decline)

B)

Rosa attempts to accept a valid offer made earlier that week by Gill (purchase house in exchange for $450,000, sale to be subject to a house inspection) but Gill revokes his offer at around the same time so that he is not bound by Rosa's acceptance.