Question 1

The principle of equality of bargaining power follows the rationale that parties should be able to rely on contractual commitments.

Accepted Answer

A) True 
 B)False

Question 2

With respect to what the terms contained in a negotiated formal contract should ultimately be representative of,each parties' reasonable expectations will most likely be founded on which of the following?

Accepted Answer

A)  that all of the parties to the contract have legal capacity to contract 
B)  the time period within which all obligations must be performed 
C)  that there has been a formal intention to create legal relations 
D)  the binding commitments that form the essence of the contract 
A)  that all of the parties to the contract have legal capacity to contract 
B)  the time period within which all obligations must be performed 
C)  that there has been a formal intention to create legal relations 
D)  the binding commitments that form the essence of the contract

Question 3

Identify and briefly explain the circumstances where a party might opt to deliberately breach a contract by refusing to honour its promises to the other side.Provide an example and a possible alternative to an outright breach of existing contractual obligations.

Accepted Answer

There may be situations in which the cos

Question 4

What test will a court apply when asked to determine a matter involving a dispute between parties regarding the formation of a contract?

Accepted Answer

A)  whether the contract is sufficiently complete to provide certainty to all parties 
B)  whether the terms of the contract provide sufficient mutual consideration 
C)  whether a reasonable person could conclude that an offer and acceptance occurred 
D)  whether the parties to the agreement have legal capacity to enter into contracts 
A)  whether the contract is sufficiently complete to provide certainty to all parties 
B)  whether the terms of the contract provide sufficient mutual consideration 
C)  whether a reasonable person could conclude that an offer and acceptance occurred 
D)  whether the parties to the agreement have legal capacity to enter into contracts

Question 5

What is the likely outcome when a court is asked to resolve a dispute involving parties that have reached an incomplete agreement?

Accepted Answer

A)  The court will decline jurisdiction to provide a remedy derived under contract law. 
B)  The court will refer to statute law that will be applied to formulate a binding contract 
C)  The court will lack jurisdiction to refer the issue to alternative dispute resolution. 
D)  The court will apply the principles of the common law to constitute a binding contract. 
A)  The court will decline jurisdiction to provide a remedy derived under contract law. 
B)  The court will refer to statute law that will be applied to formulate a binding contract 
C)  The court will lack jurisdiction to refer the issue to alternative dispute resolution. 
D)  The court will apply the principles of the common law to constitute a binding contract.

Question 6

Under which of the following circumstances would a court be likely to set a contract aside?

Accepted Answer

A)  if there is a lack of sufficient equality of the benefits received by each party 
B)  if there is an attempt to take advantage of a handicapped,vulnerable person 
C)  if there were witnesses to the contract 
D)  if the parties put their contract in writing 
A)  if there is a lack of sufficient equality of the benefits received by each party 
B)  if there is an attempt to take advantage of a handicapped,vulnerable person 
C)  if there were witnesses to the contract 
D)  if the parties put their contract in writing

Question 7

Grandview Developments negotiated an oral agreement with a landowner to purchase property on the outskirts of the city.Grandview intends to develop the land into a housing project.What is Grandview's legal position regarding this agreement?

Accepted Answer

A)  The agreement is legally binding on Grandview and the landowner. 
B)  The agreement is not legally enforceable because it is not in writing. 
C)  The agreement is not legally enforceable because it is not supported by mutual consideration. 
D)  The agreement is not legally enforceable because the parties have not achieved a 'meeting of the minds'. 
A)  The agreement is legally binding on Grandview and the landowner. 
B)  The agreement is not legally enforceable because it is not in writing. 
C)  The agreement is not legally enforceable because it is not supported by mutual consideration. 
D)  The agreement is not legally enforceable because the parties have not achieved a 'meeting of the minds'.

Question 8

Monkeytown Playground Supplies has negotiated an oral agreement with a highly reputable toy store to deliver $10,000 worth of product to the store for resale.Why should Monkeytown insist that the agreement be put in writing?

Accepted Answer

A)  because oral contracts are unenforceable 
B)  because personnel can change and memories can be selective and self-serving 
C)  because a lawsuit cannot be based on an oral agreement 
D)  because the toy store can cancel the agreement unless it is in writing 
A)  because oral contracts are unenforceable 
B)  because personnel can change and memories can be selective and self-serving 
C)  because a lawsuit cannot be based on an oral agreement 
D)  because the toy store can cancel the agreement unless it is in writing

Question 9

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

Accepted Answer

Contracts are the legal cornerstone of a

Question 10

How is the general body of law governing contracts best characterized?

Accepted Answer

A)  common law 
B)  statutory law 
C)  constitutional law 
D)  civil law 
A)  common law 
B)  statutory law 
C)  constitutional law 
D)  civil law

Question 11

Ajay entered into a contract to buy a used car from a dealership for $10,000.Upon doing further research,he has now discovered the car is actually only worth $9,000.Which of the following best describes Ajay's legal position?

Accepted Answer

A)  The contract is binding as Ajay was expected to take care of his own interests. 
B)  The contract is not binding because it is not a fair price for the car. 
C)  The contract is binding because both parties had equal bargaining power. 
D)  The contract is not binding because the dealership has committed fraud. 
A)  The contract is binding as Ajay was expected to take care of his own interests. 
B)  The contract is not binding because it is not a fair price for the car. 
C)  The contract is binding because both parties had equal bargaining power. 
D)  The contract is not binding because the dealership has committed fraud.

Question 12

Juha agreed to hire Zen Home Builders Ltd.(Zen)to construct his new home.Juha,Zen,and their lawyers met to review and sign a contract that provided for specific types of environmentally safe construction materials to be used.In many instances,Zen failed to use the stipulated "green" construction materials.What would a court,faced with determining a resolution to the ensuing dispute,rely on the existence of to establish the existence of the contract?

Accepted Answer

A)  Juha's entitlement to rescind the contract due to poor contractual performance. 
B)  A framework of rules created by the parties and which judges automatically enforce. 
C)  Mandatory rules which every type of contract is subject to. 
D)  An intention between the parties to create a legal relationship. 
A)  Juha's entitlement to rescind the contract due to poor contractual performance. 
B)  A framework of rules created by the parties and which judges automatically enforce. 
C)  Mandatory rules which every type of contract is subject to. 
D)  An intention between the parties to create a legal relationship.

Question 13

Which statement best describes the value of contracts to society?

Accepted Answer

A)  Contracts can never be breached and therefore provide permanence to promises made between parties. 
B)  Contracts permit parties to rely on terms and plan their business affairs accordingly. 
C)  Contracts create equal bargaining power between negotiating parties. 
D)  Contracts ensure that agreements are fair to both parties. 
A)  Contracts can never be breached and therefore provide permanence to promises made between parties. 
B)  Contracts permit parties to rely on terms and plan their business affairs accordingly. 
C)  Contracts create equal bargaining power between negotiating parties. 
D)  Contracts ensure that agreements are fair to both parties.

Question 14

When resolving contractual conflicts,what laws do the courts usually apply?

Accepted Answer

A)  the Contracts Act 
B)  the Sale of Goods Act 
C)  all decisions based on principles of fairness and equity 
D)  common law and occasionally statutory law 
A)  the Contracts Act 
B)  the Sale of Goods Act 
C)  all decisions based on principles of fairness and equity 
D)  common law and occasionally statutory law

Question 15

In most instances,the rules governing contractual disputes are based on the common law.

Accepted Answer

A) True 
 B)False

Question 16

If someone has suffered a legal wrong,he or she should automatically sue the wrongdoer.

Accepted Answer

A) True 
 B)False

Question 17

Which statement best explains the requirement that "contracts must be supported by mutual consideration"?

Accepted Answer

A)  There must always be at least two parties to a contract. 
B)  Contracts require that the parties treat each other fairly. 
C)  A contract involves a bargain or exchange between the parties. 
D)  Contracts must be in writing to be enforceable. 
A)  There must always be at least two parties to a contract. 
B)  Contracts require that the parties treat each other fairly. 
C)  A contract involves a bargain or exchange between the parties. 
D)  Contracts must be in writing to be enforceable.

Question 18

Is a lawsuit always the best response to a contractual legal dispute? Explain your answer.

Accepted Answer

​ Businesspeople regularly breach contra

Exam 5: An Introduction to Contracts

The principle of equality of bargaining power follows the rationale that parties should be able to rely on contractual commitments.

With respect to what the terms contained in a negotiated formal contract should ultimately be representative of,each parties' reasonable expectations will most likely be founded on which of the following?

Identify and briefly explain the circumstances where a party might opt to deliberately breach a contract by refusing to honour its promises to the other side.Provide an example and a possible alternative to an outright breach of existing contractual obligations.

What test will a court apply when asked to determine a matter involving a dispute between parties regarding the formation of a contract?

What is the likely outcome when a court is asked to resolve a dispute involving parties that have reached an incomplete agreement?

Under which of the following circumstances would a court be likely to set a contract aside?

Grandview Developments negotiated an oral agreement with a landowner to purchase property on the outskirts of the city.Grandview intends to develop the land into a housing project.What is Grandview's legal position regarding this agreement?

Monkeytown Playground Supplies has negotiated an oral agreement with a highly reputable toy store to deliver $10,000 worth of product to the store for resale.Why should Monkeytown insist that the agreement be put in writing?

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

How is the general body of law governing contracts best characterized?

Ajay entered into a contract to buy a used car from a dealership for $10,000.Upon doing further research,he has now discovered the car is actually only worth $9,000.Which of the following best describes Ajay's legal position?

Which statement best describes the value of contracts to society?

When resolving contractual conflicts,what laws do the courts usually apply?

In most instances,the rules governing contractual disputes are based on the common law.

If someone has suffered a legal wrong,he or she should automatically sue the wrongdoer.

Which statement best explains the requirement that "contracts must be supported by mutual consideration"?

Is a lawsuit always the best response to a contractual legal dispute? Explain your answer.

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

Forming Contractual Relationships

The Terms of a Contract

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

The Sale of Goods

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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