Humber College - BLAW150 150-505

Chapter 5: Working with Contracts

Exercises

True or False?

1. If an offer specifies that it must be accepted by fax before a certain deadline, your acceptance by email message before the deadline will result in a legally binding contract. 

2. Your business is running into financial difficulties, and you persuade one of your customers to pay more for your marketing-research services than the original contract specified. If your customer changes their mind and refuses to pay the additional amount, you would likely be successful if you sued them for breach of contract. 

3. Your business purchases a new computer. A week later, you see the same model at a different store at a significantly lower price and realize you paid too much. If you attempt to return the computer to the store where you bought it, the store must refund your money. 

4. It is prudent to avoid finalizing a business transaction over drinks at the local pub. 

5. If they change their mind about a contract, individuals under the age of majority may be excused from their contractual obligations. 

6. Resolving a contractual dispute in court will ensure the fairest result for all parties. 

Multiple Choice

1. A property developer is negotiating the purchase of several acres of land from the owner to develop a residential complex. The owner has made an attractive offer that is set to expire within 24 hours. The property developer wants more time to consider the offer before making a final commitment. What should the property developer do to gain additional time?

2. When a dispute arises concerning a business contract, the first step the parties should take is:

3. If found to be untrue, which of the following statements made by a car salesperson to a potential buyer would constitute a misrepresentation that could render the contract unenforceable?
4. A retailer based in British Columbia orders a large quantity of toys from a toy manufacturer in Ontario. The transaction is conducted online. The retailer fills in an online form on the manufacturer’s website, pays with a credit card, and clicks a “submit” button to complete the transaction. The contract is formed when: