RETS / CHAPTER 10 / PART 1

Question 1

The term “contract” means _ _ _ _ _ _ _

Answer 1

The term “contract” means a promise or promises, made by one person to another, which the courts will enforce.

Question 2

List the 7 requirements for a legally binding contract?

Answer 2

offer, acceptance, consideration, legal intention, capacity, legal object; and genuine consent.

Question 3

True or False? Contracts may be made by oral agreement.

Answer 3

Answer: Generally True . . . exception is contracts for land. . .

Question 4

True or False:
Contracts for the sale of land must generally be in writing as required by s.59 of the Law and Equity Act.

Answer 4

Answer: true

Question 5

List the four different ways that contracts may be ineffective?

Answer 5

Contracts may be void, illegal, voidable or unenforceable.

Question 6

This is a contract that is considered to have never existed at all.

Answer 6

Answer: void contract

Question 7

A _ _ _ _ _ _ contract is one which ONE of the parties has the option to cancel.

Answer 7

Answer: voidable

Question 8

# **Fill in the Blank:
Oral contracts respecting land will not be _ \_ _ \_ _ \_ _ \_ .**

Answer 8

Answer: enforceable

Question 9

True or False?
If A makes an offer to sell a car to B, and C overhears the offer, C cannot try to accept it. Only B can accept or reject A’s offer.

Answer 9

Answer: True

Question 10

True or False? Standing offers may be accepted by anyone.

Answer 10

Answer: True

Question 11

In most cases newspaper advertisements and store window displays are examples of _ _ _ _ _

Answer 11

Answer:
invitations to treat

Question 12

An offer expires when (list 6)

Answer 12

• *Answer:
  (1) time limit specified in the offer expired and no offer accepted;
  (2) no time limit is specified, but a reasonable time has passed;
  (3) the person who made the offer revokes before acceptance;
  (4) either party becomes insane or dies before the offer is accepted;
  (5) a counter-offer is made;
  (6) the offer is rejected.**

Question 13

True or False?
If the offer does not specify a time limit, a reasonable time allowed for acceptance will depend upon the circumstances in each case.

Answer 13

Answer:
True

Question 14

True or False?
Revocation of a written offer does not need to be in writing.

Answer 14

Answer:
True

Question 15

# **Fill in the Blank:
Responding to an offer with a _ \_ _ \_ _ allows a person to decline on a previous offer, while allowing negotiations to continue.**

Answer 15

Answer:
Counter offer

Question 16

True or False?
A counter-offer terminates the original offer.

Answer 16

Answer:
True

Question 17

# **Fill in the Blank:
Acceptance must be a _ \_ _ \_ _ \_ _ act.**

Answer 17

Answer:
positive

Question 18

True or False?
An offer cannot state “If I don’t hear from you, I’ll assume you’ve accepted”

Answer 18

Answer:
True

Question 19

If acceptance of an offer is intended to be by mail then the acceptance is effective when _ _ _ _ _ _ _ _ _ _ _ _ .

Answer 19

Answer:
It is put in the mailbox, not when actually received.

Question 20

True or False?
Consideration must be of some value but it does not have to be money.

Answer 20

Answer:
True

Question 21

True or False?
The exchange of mutual promises will provide sufficient consideration for the formation of a contract.

Answer 21

Answer:
True

Question 22

True or False?
Courts will review the adequacy of the consideration involved in a contract.

Answer 22

Answer:
False

Question 23

# **Fill in the Blank:
A contract made without consideration can still be binding if it is made under _ \_ _ \_ _ \_**

Answer 23

Answer:
Seal

Question 24

What is Quantum Meruit?

Answer 24

Answer:
a reasonable sum of money to be paid for services rendered or work done when the amount due is not stipulated in a legally enforceable contract.

Question 25

# **Fill in the Blank
\_ _ \_ _ \_ _ \_ means that the parties had a clear understanding of the substance of the contract.**

Answer 25

Answer:
Genuine consent

Question 26

# **Fill in the Blank
A _ \_ _ \_ _ \_ _ is a false statement of fact.**

Answer 26

Answer:
Misrepresentation

Question 27

An agreement without consideration is an example of a ______ contract.

Answer 27

Answer: Void contract

Question 28

With this type of offer the first person to meet the requirements of the offer and to communicate this to the offeror will be the one entitled to enforce the contract.

Answer 28

ANSWER: Standing offers

Question 29

**The reasonable time allowed for acceptance of an offer depends upon the circumstances in each case.

It will be determined by____________**

Answer 29

ANSWER: the nature of the offer or of what is being sold.

Question 30

TRUE OR FALSE? “If I don’t hear from you, I’ll assume you’ve accepted” is a valid form of acceptance.

Answer 30

ANSWER: False

Question 31

TRUE OR FALSE? The exchange of mutual promises will provide consideration for the formation of a contract.

Answer 31

ANSWER: True

Question 32

TRUE OR FALSE? The courts will review the adequacy of the consideration to determine if the consideration was too high or low.

Answer 32

Answer: False

Question 33

This is a term of contract law to distinguish advertisements or merchandise displays from formal contract offers.

Answer 33

This is a term of contract law to distinguish advertisements or merchandise displays from formal contract offers.

Question 34

TRUE OR FALSE? There is no difference in law between an offer and an invitation to treat.

Answer 34

ANSWER: False

Question 35

TRUE OR FALSE? Where a contract does not stipulate an expiry date, it will remain open forever.

Answer 35

**ANSWER: False.

CORRECT ANSWER: Contract will remain open for a reasonable period of time​**

Question 36

TRUE OR FALSE? Silence is NOT effective communication of acceptance of an offer?

Answer 36

ANSWER: TRUE

Question 37

Courts will consider the adequacy of the consideration provided in an enforceable contract.

Answer 37

ANSWER: FALSE