Exam 7: The Elements of a Contract: Capacity, Legality, and Intention

When at war, what happens to contracts with residents of an enemy country if they are detrimental to Canada?

All contracts to restrict competition are void.

The first Statute of Frauds was enacted in the USA in the 20th century.

"Where the Statute of Frauds applies and the requirement of writing is not met in an agreement between two parties, the contract is void." Discuss the validity of this statement.

If the court classifies the nature of a third-party agreement as a(n) ________, there is no requirement of writing.

(Modify this question for your province.) Bill, a college graduate, rented office space under a two-year lease. He needed the space because he contracted with the provincial government to create a program to integrate the various inventories of different government agencies. Bill hired Janet and Fred as full-time programmers for one year. He bought three desks for cash. He bought several laser printers, for which his dad signed as a guarantor. He bought computers from a different seller under a conditional sales contract. Which of these contracts should be evidenced in writing to be enforceable?

Joe advertised his house for sale and Sam came to have a look at it. While there, they haggled and struck a bargain that Sam would purchase the house for $400,000. They shook hands on the deal and Sam went home. That night, while thinking about it, Sam realized that the house wasn't exactly what he wanted, and so the next day he wrote a letter to Joe stating, "I'm writing this note to let you know that I've changed my mind with respect to the purchase of your home for $400,000, and since the contract isn't valid in any case, I don't expect to hear any more of the matter. Sincerely, Sam." Joe sued Sam for breach of contract. Discuss the legal position of the parties, including any defences available to Sam.

Recent court decisions have taken a different approach to illegal contracts. The modern approach means that an illegal contract may be partially enforceable.

Which of the following is incorrect with respect to the law of incapacity?

When a person is declared mentally incompetent by a court, who is appointed and for what purpose?

Requirements of a contract include capacity of the parties to contract, legality, and intention of the parties to be legally bound. Which of the following is false with regard to these elements?

Corporate bodies created by special legislation invariably lack capacity to enter into binding agreements.

The court may hold that a contract is void, voidable, unenforceable, or illegal. Which of the following is true with regard to these terms and the court's use of them?

Why was the Statute of Frauds originally passed?

Neither party is bound by a contract with an infant.

In Horizon Resource Management Ltd. V. Blaze Energy Ltd., one of the issues was whether Roll'n failed to comply with relevant legislation such that its contract was unenforceable due to illegality. After reviewing the law relating to illegal contracts and contracts performed illegally, the Court decided:

Discuss what a prudent businessperson should do prior to beginning operations of a small business that will conduct its business through electronic transactions?

Even in commercial relationships, if the parties make it absolutely clear that they don't intend the arrangement to be legally binding on them, the agreement will not be enforceable in court.

In which of the following situations would an infant be bound by the contract he has entered into?

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such treatment.