Chapter 6

Question 1

contract

Answer 1

promise, or set of promises that the law will enforce

Question 2

Formation of a contract

Answer 2

7 elements:

1) offer
2) acceptance
3) consideration
4) intention to create legal relations
5) capacity
6) legality
7) certainty of terms

Question 3

Offer

Answer 3

• tentative promise made by one party, subject to a condition or containing a request to the other party
• must be definite and certain, and must be communicated to intended recipient

Question 4

Standard Form Contract

Answer 4

• most common type of contract
• take it or leave it offer
• no negotiating over terms

Question 5

Advantages and disadvantages of SFC

Answer 5

Advantages

• highly efficient
• fast and easy

Disadvantages

• inequality of bargaining power
• little to no room to negotiate terms

Unusual or unexpected terms must be pointed out during the time of the contract formation or the term will be struck from contract by the court

Question 6

Counter offer

Answer 6

cannot revive offer once rejected, has to be presented as a new offer

Question 7

Acceptance

Answer 7

• final unqualified consent to the terms of the offer

- must be communicated to offeror by word or conduct

Question 8

Timing of Acceptance

Answer 8

revocation - offeror can revoke offer any time up to acceptance

• exceptions:
• where offeree has paid money to keep offer open
• where offer was made under seal

Question 9

Communication of Acceptance

Answer 9

method of acceptance should be reasonable in circumstances and reasonable to the offer

Question 10

Jurisdiction

Answer 10

Location where contract was formed is determined by where acceptance is accepted

Important in determining of what province or country’s laws will govern that contract