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assignment_2 - ADMN 390 Assignment 2 Your Name 1 of 7...

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ADMN 390: Assignment 2 1 of 7 Your Name: Assignment 2 Complete Assignment 2 after Unit 6. Follow the general directions provided under “Course Assessment” in the Study Guide. MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question. ONE MARK EACH (8 marks for section) 1. Which of the following statements is correct with respect to the law of consideration? A) Consideration must have some value but need not be specific. B) Without consideration or a seal, there can be no contract. C) Consideration need not be specific, just so both parties got something out of the deal. D) For a contract to be binding something valuable must have changed hands. This consideration may have been paid before the agreement (past consideration) or at the time of the agreement (present consideration), but future consideration is no consideration. E) The amount of consideration to be paid in a contract must be reasonable (that is, fair) from the point of view of each party. TRU Open Learning
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ADMN 390: Assignment 2 2 of 7 Your Name: 2. Jed, who lived on Cape Breton Island, needed money for a trip to France. He decided to sell his electric guitar. On Monday, October 29, he called the owner of a music store in Halifax and offered to sell his Fender Stratocaster guitar for $400, the offer to be open until Friday noon, November 2. Jed told the store owner to send a letter of acceptance since he (Jed) would be away for a few days. The store owner examined his inventory and mailed a letter of acceptance on Thursday, November 1. When Jed returned home on Saturday, November 3, the letter had not yet arrived, so that afternoon he sold the guitar to a music teacher in his town. The store owner in Halifax sued for breach of contract. Which of the following is true? A) The letter of acceptance was effective when it was received, and by then Jed had sold it, so there was no contract. B) The offer was revoked before the store owner accepted. C) The offer lapsed before the store owner accepted. D) Sending a letter by mail was not a reasonable method of acceptance. E) The acceptance was effective before the offer lapsed, so there was a contract between Jed and the store owner. 3. Joe was in a bar and saw his friend Sam. Sam had a considerable amount to drink. Sam offered to sell Joe his Porsche automobile for only $15,000. Joe made sure to have Sam sign a written agreement to that effect. The next day, Joe went to pick up the car, but Sam didn ʹ t remember anything about it. Even when Joe showed him the written agreement signed by him, Sam refused to deliver the car. Joe sued. Which of the following correctly states the legal position of the parties?
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