Exam 6: Contracts: Problems With Formation

A voidable contract is one that never existed.

A court applies the reasonable person test to determine a mistake.

Which of the following is against public policy?

Duress is coercing a party into entering a contract through threat or the use of harm to the person.

Which of the following would not be considered a necessary?

Enemy aliens may have limited capacity to enter into contracts.

A misrepresentation must be the statement that induced the party to enter into the contract.

When deciding whether to end a contract, a court will examine why a party entered into a contract.

If a contract conflicts with the interests of society it is against public policy and not enforceable.

If the subject matter of a contract was destroyed prior to contract formation, the contract is voidable.

A person claiming insanity to set aside a contract must show that:

A voidable contract is one that one party can enforce if they wish.

Unjust enrichment is when one party to a contract mistakenly gives a benefit to the other party.

Rescission and damages are remedies for innocent misrepresentation.

Rescission and damages are remedies for fraudulent misrepresentation.

Suppliers in online contractual transactions have no special duties when dealing with customers.

The purpose of a contract must be legal and enforceable by a court.

A person lacking capacity determines if the contract is voidable.

Each province has a statute that determines the age of majority.

The parties to a contract must be capable of understanding what they are getting into.