Contract

Question 1

What three elements are required for a contract?

Answer 1

1. Agreement (offer and acceptance)
2. Intention to be legally bound
3. Consideration

Question 2

What are three ways a simple contract can come into existence?

Answer 2

1. In writing
2. Orally
3. Through conduct of parties

Question 3

What are three examples of contracts which must be in writing?

Answer 3

1. Guarantees
2. Contracts for sale/disposition of an interest in land
3. Consumer credit agreements

Question 4

How are contracts in electronic form typically treated?

Answer 4

They will be considered properly executed as if they were in writing

Question 5

What is a deed?

Answer 5

A document which makes it clear on its face that it is a deed

Question 6

What are the two requirements for a deed?

Answer 6

1. Executed by the parties to it in the presence of a witness
2. Delivered

Question 7

What are two instances where a contract must be made via deed to be enforceable?

Answer 7

1. Promises where nothing is received/promised in return (avoids consideration issue)
2. Conveyance/transfers of land (the actual land itself; not to be confused with the contract to sell/dispose of an interest in land)

Question 8

In the context of a deed, what does delivered mean?

Answer 8

Any act indicating the parties’ intention to be bound

Question 9

What is the timing advantage in having a contract made by deed as opposed to a contract not made by deed?

Answer 9

12 years to bring a claim for breach, as opposed to 6

Question 10

What is required for a communication to be an offer?

Answer 10

It must create a reasonable expectation in the offeree that the offeror is willing to enter into a contract on the basis of all material terms contained in the offer

Question 11

An expression of what is required for a communication to be an offer?

Answer 11

An expression of a promise, undertaking, or commitment to enter into a contract

Question 12

What is required of the essential terms of an offer?

Answer 12

The essential terms must be definite and certain, and not too vague, uncertain, or incomplete

Question 13

What is the basic inquiry required to determine if an offer contains definite and certain terms?

Answer 13

Whether enough of the essential terms have been provided so that a contract including them would be capable of being enforced

Question 14

Does an offeree need to have knowledge of an offer?

Answer 14

Yes

Question 15

How does an offeree acquire knowledge of an offer?

Answer 15

The offer must be communicated to them

Question 16

Is a statement made in response to a request for information an offer?

Answer 16

No

Question 17

What is a unilateral contract?

Answer 17

A contract which arises when an offeror promises to do something if the offeree does something in return and the offeree actually does this thing

Question 18

What is the effect of termination of an unaccepted offer?

Answer 18

It cannot be accepted

Question 19

What is a revocation?

Answer 19

A retraction of an offer by the offeror

Question 20

How is an offer revoked directly?

Answer 20

By directly communicating the revocation to the offeree before acceptance

Question 21

How is an offer revoked indirectly?

Answer 21

If the offeree receives:
1. Correct information
2. From a reliable source
3. Of acts of the offeror which would indicate to a reasonable person that the offeror no longer wishes to make the offer