Question 1

Which of the following is NOT true?

Accepted Answer

A)  A corporation cannot enter into a contract. 
B)  A corporation is a legal fiction. 
C)  A corporation is a creature of law. 
D)  A corporation has no physical existence. 
E)  A corporation has the same attributes as a natural person. 
A)  A corporation cannot enter into a contract. 
B)  A corporation is a legal fiction. 
C)  A corporation is a creature of law. 
D)  A corporation has no physical existence. 
E)  A corporation has the same attributes as a natural person. A

Question 2

When a court strikes down an unreasonable agreement between an employer and employee that restricts the future economic freedom of the employee, the court serves two public interests, namely protecting employees and

Accepted Answer

A)  maintaining peaceful workplaces. 
B)  protecting businesses. 
C)  applying the law law. 
D)  protecting the management of businesses. 
E)  protect the mobility of labour. 
A)  maintaining peaceful workplaces. 
B)  protecting businesses. 
C)  applying the law law. 
D)  protecting the management of businesses. 
E)  protect the mobility of labour. E

Question 3

An agreement in restraint of trade will NOT be struck down if it is unreasonable in terms of:

Accepted Answer

A)  its effect on the public interest 
B)  the breadth of activities restricted 
C)  geographic limitations 
D)  consideration paid for it 
E)  its duration 
A)  its effect on the public interest 
B)  the breadth of activities restricted 
C)  geographic limitations 
D)  consideration paid for it 
E)  its duration D

Question 4

Michael is an aboriginal native living on a Canadian Native Indian Reservation. Which of the following is true?

Accepted Answer

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

Question 5

In examining contracts that include a restrictive covenant, the court will not presume that the term is in restraint of trade, unless the evidence establishes that it is.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A contract made by a minor is enforceable against her, and unenforceable by her.

Accepted Answer

A) True 
 B)False

Question 8

Explain why it can be importance in terns of enforcing a contract, to ensure that you have all the licences required by government regulation and your trade.

Accepted Answer

If you do not have the required licences

Question 9

Capacity to contract means

Accepted Answer

A)  the ability to make an offer, or accept and offer. 
B)  the ability to make a promise. 
C)  the competence to enter into a legally binding contract. 
D)  the ability to comprehend the terms of a contract. 
E)  the ability to pay damages in the event of a breach of contract. 
A)  the ability to make an offer, or accept and offer. 
B)  the ability to make a promise. 
C)  the competence to enter into a legally binding contract. 
D)  the ability to comprehend the terms of a contract. 
E)  the ability to pay damages in the event of a breach of contract.

Question 10

Most business contracts are challenged on grounds of public policy because they may be in restraint of trade.

Accepted Answer

A) True 
 B)False

Question 11

The statute that sets out the legal position of Native Canadians is called the

Accepted Answer

A)  Native Canadian Bill of Rights. 
B)  Indian Act. 
C)  Native Canadian Independence Act. 
D)  Native Canadian Charter of Freedoms. 
E)  Native Canadian Self Government Law. 
A)  Native Canadian Bill of Rights. 
B)  Indian Act. 
C)  Native Canadian Independence Act. 
D)  Native Canadian Charter of Freedoms. 
E)  Native Canadian Self Government Law.

Question 12

When can an adult recover money loaned to a minor?

Accepted Answer

An adult can recover

Question 13

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

Accepted Answer

A contract must be legal, that is it mus

Question 14

Although a contract may contemplate the commission of a crime, it may still be deemed to be illegal because it is contrary to

Accepted Answer

A)  the criminal code. 
B)  moral standards. 
C)  societal standard. 
D)  public sentiments. 
E)  public policy. 
A)  the criminal code. 
B)  moral standards. 
C)  societal standard. 
D)  public sentiments. 
E)  public policy.

Question 15

Explain, with the use of examples, the concept of legal capacity.

Accepted Answer

Legal capacity means competence to bind

Question 16

When a corporation's actions exceed its powers, its conduct may be challenged as being ultra vires.

Accepted Answer

A) True 
 B)False

Question 17

Mary is thirteen years old, she enters into an agreement with a modelling agent pursuant to which the agent agrees to represent her. Why of the following is NOT true?

Accepted Answer

A)  The contract is enforceable against the agent. 
B)  The contract is not enforceable by Mary against the agent. 
C)  The agent cannot enforce the contract against Mary. 
D)  The agent can only enforce a contract regarding necessaries against the minor. 
E)  A minor may violate contracts with impunity because he or she is not bound. 
A)  The contract is enforceable against the agent. 
B)  The contract is not enforceable by Mary against the agent. 
C)  The agent cannot enforce the contract against Mary. 
D)  The agent can only enforce a contract regarding necessaries against the minor. 
E)  A minor may violate contracts with impunity because he or she is not bound.

Question 18

Business agreements are most often challenged as contrary to public policy because

Accepted Answer

A)  one party may have been coerced into signing the agreement. 
B)  they may be in restraint of trade. 
C)  the agreement may be contrary to statute. 
D)  one party may be more powerful that the other. 
E)  the agreement may be intended to defraud others. 
A)  one party may have been coerced into signing the agreement. 
B)  they may be in restraint of trade. 
C)  the agreement may be contrary to statute. 
D)  one party may be more powerful that the other. 
E)  the agreement may be intended to defraud others.

Question 19

Minors will be liable for contracts

Accepted Answer

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

Question 20

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

Exam 7: Formation of a Contract: Capacity to Contract and Legality of Object

Which of the following is NOT true?

When a court strikes down an unreasonable agreement between an employer and employee that restricts the future economic freedom of the employee, the court serves two public interests, namely protecting employees and

An agreement in restraint of trade will NOT be struck down if it is unreasonable in terms of:

Michael is an aboriginal native living on a Canadian Native Indian Reservation. Which of the following is true?

In examining contracts that include a restrictive covenant, the court will not presume that the term is in restraint of trade, unless the evidence establishes that it is.

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?

A contract made by a minor is enforceable against her, and unenforceable by her.

Explain why it can be importance in terns of enforcing a contract, to ensure that you have all the licences required by government regulation and your trade.

Capacity to contract means

Most business contracts are challenged on grounds of public policy because they may be in restraint of trade.

The statute that sets out the legal position of Native Canadians is called the

When can an adult recover money loaned to a minor?

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

Although a contract may contemplate the commission of a crime, it may still be deemed to be illegal because it is contrary to

Explain, with the use of examples, the concept of legal capacity.

When a corporation's actions exceed its powers, its conduct may be challenged as being ultra vires.

Mary is thirteen years old, she enters into an agreement with a modelling agent pursuant to which the agent agrees to represent her. Why of the following is NOT true?

Business agreements are most often challenged as contrary to public policy because

Minors will be liable for contracts

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

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

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

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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