Exam 5: Making Enforceable Business Agreements

Paul agrees with William (who accepts)to purchase William's house if Paul can arrange a mortgage for $250,000 in 30 days. The term regarding the mortgage arrangement is called:

Which of the following statements is FALSE?

Which of the following is NOT a necessary element in forming a contract?

Which of the following contracts will likely be enforced by the courts?

Tom Shanks sign a contract to make a film for GMG Pictures for $20,000,000. The contract was not under seal. Part way through filming, he gets an offer to make another film for even more money, but production is starting immediately. He tells GMG he requires another $2,000,000 to complete their picture, or he'll walk. Is GMG legally bound to pay?

Which of the following statements is FALSE with respect to contracts?

Shares in Bonanza Inc. are trading at $100 per share on January 20. Gordon Gecko purchases a 10 day option for $1,000, to buy 50 shares of Bonanza at $100. Which of the following statements is FALSE?

In the law of contract, consideration means:

Which of the following statements about contract law is TRUE?

Seth, a very mature looking 16 year old, against his parents' wishes, bought a motorcycle for $3,000 from Mike's Bikes. The contract called for 12 monthly payment of $250. After three months, Seth decided to cancel the contract. Which of the following statement is TRUE?

Most contracts have to be in writing to be valid.

To be enforceable, an agreement that restricts a person's right to earn income must be:

Which of the following contracts does NOT have to be in writing to be valid?

In the case of UBS Securities Canada v. Sands Brothers Canada, the court held that:

Which of the following statements is FALSE?

Legislation in some provinces has made changes to contract law for the benefit of the consumer. Which of the following is an example of a consumer protection law?

Dorothy Rache listed her house for sale at $200,000. Linda Bugowski presented her with the usual real estate agreement form with a purchase price of $180,000. Dorothy crossed out the $180,000 and replaced it with $190,000. Linda initialed the changes and added "plus the drapery". In legal terminology:

Which of the following is NOT a relevant consideration in a court's decision to void a contract made with a mentally incompetent person?

Arnie Stoltz, a 16-year-old living in British Columbia, had had enough of high school. He approached Suzanne Vegan, a 55 year old master chef, to teach him how to be a chef. Suzanne charges $10,000 a year for the two year training program and agreed to allow Arnie to pay her the full amount one year after he completed the program. When Suzanne called on Arnie a year after he completed the training to collect the money, Arnie said he wouldn't pay a cent because he had been a minor when he signed the contract. Which of the following statements best describes Suzanne's legal position in this matter?

Which of the following statements about minors' contracts is TRUE?