Question 1

A minor may repudiate all contracts entered into by her with the exception of

Accepted Answer

A) contracts for necessaries. 
B) contracts entered into under duress. 
C) contracts that are beneficial to the minor. 
D) contracts pertaining to real estate. 
E) contracts entered into with relatives. 
A) contracts for necessaries. 
B) contracts entered into under duress. 
C) contracts that are beneficial to the minor. 
D) contracts pertaining to real estate. 
E) contracts entered into with relatives. A

Question 2

When a minor reaches the age of majority,a contract that was entered into earlier and was unenforceable remains unenforceable unless

Accepted Answer

A) the parties execute an affidavit. 
B) it was ratified after the person attains the age of majority. 
C) it is repudiated after the person attains the age of majority. 
D) the subject matter is a non-necessary item. 
E) the subject matter is stolen before the person attains the age of majority. 
A) the parties execute an affidavit. 
B) it was ratified after the person attains the age of majority. 
C) it is repudiated after the person attains the age of majority. 
D) the subject matter is a non-necessary item. 
E) the subject matter is stolen before the person attains the age of majority. B

Question 3

What must a minor do if he or she wishes to avoid liability under a contract?

Accepted Answer

The minor must promptly repudiate the contract and return goods not used,whatever their condition.

Question 4

On January 1,Jack,a minor,orders some computer software programs from a computer company.Jack needs the programs for school.The software programs cost $4000.00.On January 5,just before the computer company sends the software programs out,Jack has a change of heart.So he calls the computer company and tells them that he no longer wants the programs.In this situation,

Accepted Answer

A) Jack cannot cancel the contract,because there has been offer and acceptance. 
B) Jack cannot cancel the contract,because the programs are necessaries. 
C) Jack cannot cancel the contract,because it is a beneficial contract of service. 
D) Jack can cancel the contract,because the software programs are non-necessaries and he has not taken delivery of them. 
E) Jack can cancel the contract,because minors do not have to pay large sums of money. 
A) Jack cannot cancel the contract,because there has been offer and acceptance. 
B) Jack cannot cancel the contract,because the programs are necessaries. 
C) Jack cannot cancel the contract,because it is a beneficial contract of service. 
D) Jack can cancel the contract,because the software programs are non-necessaries and he has not taken delivery of them. 
E) Jack can cancel the contract,because minors do not have to pay large sums of money.

Question 5

Explain the role of legality in the formation of a contract.

Accepted Answer

A contract must be legal,that is,it must

Question 6

Which of the following is true?

Accepted Answer

A) Where a portion of a contract is void,the whole contract is affected and a court will set aside the whole contract as being void. 
B) A contract that contemplates the commission of a tort is not legal unless the tort is committed and someone is injured. 
C) Where a portion of a contract is void,the remainder of the contract is not affected provided a court can sever the void parts without doing injustice to the parties. 
D) The common law supersedes statute law when determining the legality of contracts. 
E) A statute can only make a contract illegal;it cannot make a contract void. 
A) Where a portion of a contract is void,the whole contract is affected and a court will set aside the whole contract as being void. 
B) A contract that contemplates the commission of a tort is not legal unless the tort is committed and someone is injured. 
C) Where a portion of a contract is void,the remainder of the contract is not affected provided a court can sever the void parts without doing injustice to the parties. 
D) The common law supersedes statute law when determining the legality of contracts. 
E) A statute can only make a contract illegal;it cannot make a contract void.

Question 7

Which of the following is true regarding the legal capacity of the corporation?

Accepted Answer

A) Agents can negotiate but not sign contracts on behalf of the corporation. 
B) All contracts need to be placed under the corporate seal. 
C) The corporation can show it is ultra vires to have contracts enforceable. 
D) Authorized officers of the corporation can sign most contracts. 
E) Neither statute nor incorporating documents can limit the capacity. 
A) Agents can negotiate but not sign contracts on behalf of the corporation. 
B) All contracts need to be placed under the corporate seal. 
C) The corporation can show it is ultra vires to have contracts enforceable. 
D) Authorized officers of the corporation can sign most contracts. 
E) Neither statute nor incorporating documents can limit the capacity.

Question 8

Michael is an Aboriginal person living on a reserve.Which of the following is true?

Accepted Answer

A) Michael can use reserve land as security for a loan. 
B) Michael may manufacture and sell goods to outsiders. 
C) If Michael moves off the reserve,his capacity to contract would not change. 
D) Michael has the same capacity to contract as other Canadians. 
E) Michael's legal position to sell produce would not vary by province. 
A) Michael can use reserve land as security for a loan. 
B) Michael may manufacture and sell goods to outsiders. 
C) If Michael moves off the reserve,his capacity to contract would not change. 
D) Michael has the same capacity to contract as other Canadians. 
E) Michael's legal position to sell produce would not vary by province.

Question 9

Why is a court more likely to accept as reasonable certain restraints on an employer who is in possession of certain trade secrets of his or her employer?

Accepted Answer

Agreements between employer and employee

Question 10

In order to collect compensation for a loss under a fire insurance policy,the insured must show an insurable interest.

Accepted Answer

A) True 
 B)False

Question 11

A minor is

Accepted Answer

A) a person who is small in stature. 
B) a person who enters into an agreement to work in a coal mine. 
C) a person who performs minor tasks pursuant to a contract. 
D) a person who is small in stature but is able to enter into certain contract. 
E) a person who has not attained the age of majority. 
A) a person who is small in stature. 
B) a person who enters into an agreement to work in a coal mine. 
C) a person who performs minor tasks pursuant to a contract. 
D) a person who is small in stature but is able to enter into certain contract. 
E) a person who has not attained the age of majority.

Question 12

A court will refuse to enforce a contract that involves illegality only if it can be shown that both parties knowingly agreed to illegality.

Accepted Answer

A) True 
 B)False

Question 13

Legal capacity simply refers to the ability of a party to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 14

Once a contract has been made,legal capacity will be presumed unless the defendant proves otherwise.

Accepted Answer

A) True 
 B)False

Question 15

Where a contract contains a restrictive covenant,that is,a covenant in restraint of trade,the totality of the contract is invalid.

Accepted Answer

A) True 
 B)False

Question 16

Harvey is a teacher.He is also a member of a labour union that represents teachers.For the past month,the union has been negotiating a new agreement with the government of Ontario.Yesterday,the union executive authorized Harvey to bring a lawsuit against the government of Ontario for failure to bargain in good faith.In this situation,

Accepted Answer

A) the labour union is just like a corporation and can bring a lawsuit against the government. 
B) only Harvey himself can bring a lawsuit against the government,not the union. 
C) just like a social club,the labour union cannot bring a lawsuit against the government. 
D) the labour union can appoint Harvey to bring a representative action on behalf of the union against the government. 
E) the law is uncertain as to the status of labour unions to bring a lawsuit against the government. 
A) the labour union is just like a corporation and can bring a lawsuit against the government. 
B) only Harvey himself can bring a lawsuit against the government,not the union. 
C) just like a social club,the labour union cannot bring a lawsuit against the government. 
D) the labour union can appoint Harvey to bring a representative action on behalf of the union against the government. 
E) the law is uncertain as to the status of labour unions to bring a lawsuit against the government.

Question 17

Happy Carrier Company (HCC)is in the business of shipping goods.Yesterday HCC agreed with John Smith to ship Mr.Smith's furniture from Toronto to Ottawa.Mr.Smith's furniture is worth $100 000.00.Just before loading the furniture onto its truck,HCC's driver had Mr.Smith sign a contract that contained a term that limited HCC's liability for destruction or damage to the furniture to $50.00 if it resulted from the negligence of HCC or its employees.On the way to Ottawa,HCC's driver lost control of the truck and Mr.Smith's furniture was destroyed by fire after the truck crashed into a brick wall.In this situation,

Accepted Answer

A) the limitation of liability in the contract is effective only against HCC,but not its employee,so Mr.Smith can sue the employee for the value of his furniture. 
B) the limitation of liability in the contract is permitted by law and Mr.Smith will receive only $50.00. 
C) Mr.Smith's contract with HCC is illegal by common law,so Mr.Smith will recover the full value of his furniture from HCC. 
D) although the contract with HCC is legal,the limitation on liability contained in it is not,so Mr.Smith will recover the full value of his furniture from HCC. 
E) the limitation of liability in the contract is not effective,because Mr.Smith did not see it before he signed the contract,so Mr.Smith will recover the full value of his furniture from HCC. 
A) the limitation of liability in the contract is effective only against HCC,but not its employee,so Mr.Smith can sue the employee for the value of his furniture. 
B) the limitation of liability in the contract is permitted by law and Mr.Smith will receive only $50.00. 
C) Mr.Smith's contract with HCC is illegal by common law,so Mr.Smith will recover the full value of his furniture from HCC. 
D) although the contract with HCC is legal,the limitation on liability contained in it is not,so Mr.Smith will recover the full value of his furniture from HCC. 
E) the limitation of liability in the contract is not effective,because Mr.Smith did not see it before he signed the contract,so Mr.Smith will recover the full value of his furniture from HCC.

Question 18

Minors will be liable for contracts

Accepted Answer

A) if the contracts concern necessaries. 
B) if the minor completes a declaration stating that he or she has read and understood the terms of the contract. 
C) if they signed the contract. 
D) if the parent of the minor was present at the time the minor was signing the contract. 
E) if the minor is deemed to be of well-above-average intelligence. 
A) if the contracts concern necessaries. 
B) if the minor completes a declaration stating that he or she has read and understood the terms of the contract. 
C) if they signed the contract. 
D) if the parent of the minor was present at the time the minor was signing the contract. 
E) if the minor is deemed to be of well-above-average intelligence.

Question 19

Native Canadians living on reserves are considered to be ________ of the Crown.

Accepted Answer

A) wards 
B) children 
C) beneficiaries 
D) friends 
E) relatives 
A) wards 
B) children 
C) beneficiaries 
D) friends 
E) relatives

Question 20

Why is a court more likely to accept as reasonable certain restraints on an employer who is in possession of certain trade secrets of his or her employer?

Accepted Answer

Agreements between employer and employee

Exam 8: Formation of a Contract: Capacity to Contract and Legality of Object

A minor may repudiate all contracts entered into by her with the exception of

When a minor reaches the age of majority,a contract that was entered into earlier and was unenforceable remains unenforceable unless

What must a minor do if he or she wishes to avoid liability under a contract?

Explain the role of legality in the formation of a contract.

Which of the following is true?

Which of the following is true regarding the legal capacity of the corporation?

Michael is an Aboriginal person living on a reserve.Which of the following is true?

Why is a court more likely to accept as reasonable certain restraints on an employer who is in possession of certain trade secrets of his or her employer?

In order to collect compensation for a loss under a fire insurance policy,the insured must show an insurable interest.

A minor is

A court will refuse to enforce a contract that involves illegality only if it can be shown that both parties knowingly agreed to illegality.

Legal capacity simply refers to the ability of a party to enter into a contract.

Once a contract has been made,legal capacity will be presumed unless the defendant proves otherwise.

Where a contract contains a restrictive covenant,that is,a covenant in restraint of trade,the totality of the contract is invalid.

Minors will be liable for contracts

Native Canadians living on reserves are considered to be ________ of the Crown.

Why is a court more likely to accept as reasonable certain restraints on an employer who is in possession of certain trade secrets of his or her employer?

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

Filters