7/29/2019 law contract formation type of law
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WEEK 3 - THE FORMATION OF CONTRACTS
Apply Your Knowledge
(EXERCISE 2 - AGREEMENT )
Under Canadian common law, decide whether the parties involved
havereached an agreement (the first element of a contract )in each
of thefollowing situations. Your answer must include the legal
reason for youropinion. Would your answer to any of the cases be
different if civil lawapplied?
1. Pete placed an ad in the Auto Trader that read 1997 Ford
Cargo Vanfor sale, Excellent Condition - $6,000". Paul, who needed
a van totransport goods to the airport for delivery to his foreign
customers,saw the ad and went to see the van. After examining the
van, Paultold Pete he would give him the $6,000.
2. Arnold owned three warehouse units (A, B and C) in a
commercialdevelopment in Brampton. As a result of some financial
difficulties,he wrote to Bob as follows "I will sell you one of my
warehouse unitsin Brampton. Bob immediately wrote back "I accept
your offer".
3. On February 1, Ann offers to sell a product she invented to
AceManufacturing for $30,000. On February 2, Ace replies that they
willonly pay $20,000. Ann replies "No Deal". On February 3,
havingthought it over, Ace tells Ann they will pay her the
$30,000.
4. On Monday, Horner, a Canadian furniture manufacturer, faxes
anoffer to sell 12 office desks at a price of $150.00 each to
Green, anoffice supply retailer in the U.S. Horner states that the
offer will beopen for acceptance until noon on Wednesday. On
Tuesdayevening, Horner faxes Green and tells him that the desks are
nolonger available as another purchaser has agreed to pay $200 a
desk.Ignoring the Tuesday fax, Green faxes Horner an acceptance
that isreceived by Horner at 10 a.m. on Wednesday morning.
5. On September 15th, Dick offered in writing to sell to Jane
5,000 hisshares in a very volatile computer company at a price of
$10.00 each.No time limit was specified for acceptance of the
offer. After thinkingit over for several weeks, Jane wrote Dick on
October 15th statingthat she was accepting his offer. At that time
the shares hadincreased in value to $15.
