Question 1

What are the legal consequences of the ratification of a contract by a minor who attains the age of majority?

Accepted Answer

When a minor who attains the a

Question 2

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 3

The age of majority is established by

Accepted Answer

A)  provincial legislation. 
B)  municipal by- laws. 
C)  federal legislation. 
D)  the English common law. 
E)  anglo- canadian common law. 
A)  provincial legislation. 
B)  municipal by- laws. 
C)  federal legislation. 
D)  the English common law. 
E)  anglo- canadian common law.

Question 4

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

Question 5

Which of the following words comes close to the meaning of capacity as it is used in law?

Accepted Answer

A)  size 
B)  grasp 
C)  competence 
D)  capability 
E)  room or volume 
A)  size 
B)  grasp 
C)  competence 
D)  capability 
E)  room or volume

Question 6

Native Canadians living on reservations are considered to be _ of the Crown.

Accepted Answer

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

Question 7

A year ago, James sold a motor bike to Jim, his best friend. At the time that the bike was sold, Jim was a minor. Jim is still making payments to James. Jim will be attaining the age of majority in a few months time. How should James protect himself?

Accepted Answer

A)  Have Jim transfer the bike to a third party. 
B)  Get Jim to ratify the agreement. 
C)  Provide Jim with a statement of account. 
D)  Enter into another agreement with Jim. 
E)  Get a witness to witness the next payment that Jim makes. 
A)  Have Jim transfer the bike to a third party. 
B)  Get Jim to ratify the agreement. 
C)  Provide Jim with a statement of account. 
D)  Enter into another agreement with Jim. 
E)  Get a witness to witness the next payment that Jim makes.

Question 8

Explain the position that a court will take when it is faced with a term in a contract that may be in restraint of trade.

Accepted Answer

When a court is faced with a term in a c

Question 9

ABC Inc. and XYZ Ltd. enter into an agreement. The agreement, among other things, includes a provision that both parties will monitor their prices to ensure that both parties price their products equally. The court will set aside the whole contract as being illegal.

Accepted Answer

A) True 
 B)False

Question 10

A minor's freedom from liability is limited to contract. Explain.

Accepted Answer

A minor is a person who has not reached

Question 11

A restrictive covenant is a term in restraint of trade that is found in an agreement.

Accepted Answer

A) True 
 B)False

Question 12

Jack and Jill agree to threaten Michael into giving them his valuable coin collection. This agreement between Jack and Jill, according to the common law, is

Accepted Answer

A)  unenforceable. 
B)  illegal. 
C)  void 
D)  ineffective. 
E)  voidable. 
A)  unenforceable. 
B)  illegal. 
C)  void 
D)  ineffective. 
E)  voidable.

Question 13

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

Accepted Answer

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

Question 14

What is meant by the term contractual capacity?

Accepted Answer

Contractual capacity

Question 15

Explain the difference between a void and an illegal contract.

Accepted Answer

Void is the legal expression that means

Question 16

The age of majority is established by the English common law.

Accepted Answer

A) True 
 B)False

Question 17

Upon attaining the age of majority, a minor may be bound by two kinds of voidable contracts, namely .

Accepted Answer

A)  contracts of service and contracts of employment 
B)  contracts of purchase, and contracts of sale 
C)  contracts that create an interest of a continuous and permanent nature, and contracts that are ratified by the minor 
D)  contracts pertaining to real estate, and contracts pertaining to intellectual property 
E)  contracts that concern necessaries, and contracts that concern non- necessaries 
A)  contracts of service and contracts of employment 
B)  contracts of purchase, and contracts of sale 
C)  contracts that create an interest of a continuous and permanent nature, and contracts that are ratified by the minor 
D)  contracts pertaining to real estate, and contracts pertaining to intellectual property 
E)  contracts that concern necessaries, and contracts that concern non- necessaries

Question 18

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 19

Although there has been an offer and acceptance and consideration, and the parties intended to enter into a contract, a court will set aside a contract as void, because of

Accepted Answer

A)  the impecuniosity of one of the parties. 
B)  the lack of capacity of one of the parties. 
C)  the signature on the contract is unclear. 
D)  the wealth of one of the parties. 
E)  the social standing of one of the parties. 
A)  the impecuniosity of one of the parties. 
B)  the lack of capacity of one of the parties. 
C)  the signature on the contract is unclear. 
D)  the wealth of one of the parties. 
E)  the social standing of one of the parties.

Question 20

Restrictive covenants are most likely to involve employment contracts.

Accepted Answer

A) True 
 B)False

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

What are the legal consequences of the ratification of a contract by a minor who attains the age of majority?

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

The age of majority is established by

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

Which of the following words comes close to the meaning of capacity as it is used in law?

Native Canadians living on reservations are considered to be _ of the Crown.

A year ago, James sold a motor bike to Jim, his best friend. At the time that the bike was sold, Jim was a minor. Jim is still making payments to James. Jim will be attaining the age of majority in a few months time. How should James protect himself?

Explain the position that a court will take when it is faced with a term in a contract that may be in restraint of trade.

ABC Inc. and XYZ Ltd. enter into an agreement. The agreement, among other things, includes a provision that both parties will monitor their prices to ensure that both parties price their products equally. The court will set aside the whole contract as being illegal.

A minor's freedom from liability is limited to contract. Explain.

A restrictive covenant is a term in restraint of trade that is found in an agreement.

Jack and Jill agree to threaten Michael into giving them his valuable coin collection. This agreement between Jack and Jill, according to the common law, is

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

What is meant by the term contractual capacity?

Explain the difference between a void and an illegal contract.

The age of majority is established by the English common law.

Upon attaining the age of majority, a minor may be bound by two kinds of voidable contracts, namely .

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

Although there has been an offer and acceptance and consideration, and the parties intended to enter into a contract, a court will set aside a contract as void, because of

Restrictive covenants are most likely to involve employment contracts.

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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