Chapter 6

Question 1

Contracts

Answer 1

A set of promises that the law will enforce

Question 2

4 requirements for a legally enforceable contract

Answer 2

offer, acceptance, consideration, and intention

Question 3

Offer

Answer 3

a description of a promise one party is willing to make, subject to the agreement of the other party

Question 4

Offeror

Answer 4

the person making the offer

Question 5

Offeree

Answer 5

the person to whom the offer is made

Question 6

Standard form contract

Answer 6

an offer prepared in advance by the offeror, including terms favourable to the offeror that cannot be changed by the offeree but must be accepted as is or rejected in their entirety, also known as a contract of adhesion

Question 7

contract of adhesion

Answer 7

Standard form of contract

Question 8

Lapse

Answer 8

the termination of an offer when the offeree fails to accept it within a specified time, or if no time is specified, then within a reasonable time

Question 9

Revocation

Answer 9

an offer at any time before acceptance

Question 10

Option

Answer 10

a contract to keep an offer open for a specified time in return for a sum of money

Question 11

Exercise an option

Answer 11

accept the offer contained in an option

Question 12

Counter-offer

Answer 12

rejection of the earlier offer and brings it to an end.

Question 13

Negative Option Billing

Answer 13

a practice of adding services and sending bills without request and relying upon the customer to cancel if they don’t wish the service

Question 14

Inviting tenders

Answer 14

seeking offers from suppliers

Question 15

Standing Offer

Answer 15

an offer that may be accepted as needed from time to time

Question 16

Jurisdiction

Answer 16

the province, state, or country whose laws apply to a particular situation

Question 17

Bilateral Contract

Answer 17

a contract where offeror and offeree trade promises and both are bound to perform later

Question 18

Promisor

Answer 18

a party who is under an obligation to perform a promise according to the terms of the contract

Question 19

Promise

Answer 19

a party who has the right to performance according to the terms of the contract

Question 20

Breach of contract

Answer 20

a cause of action where a party to the contract claims that the other party has not fulfilled its promises

Question 21

Unilateral Contract

Answer 21

a contract in which the offer is accepted by performing an act or series of acts required by the terms of the offer

Question 22

Subsidiary Promise

Answer 22

an implied promise that the offeror will not revoke once the offeree begins performance in good faith and continues to perform