Question 1

Indicate what types of contracts are binding on infants.

Accepted Answer

Necessaries and beneficial con

Question 2

A necessary element of a contract is that the parties must have the intention to be legally bound. Which of the following is true with regard to this element of a contract?

Accepted Answer

A)  In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract. 
B)  If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract. 
C)  The court always presumes an intention to be legally bound, so this is never an issue in a contract case. 
D)  The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption. 
E)  Family members can never have the intent to be legally bound in their agreements because family matters are private matters. 
A)  In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract. 
B)  If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract. 
C)  The court always presumes an intention to be legally bound, so this is never an issue in a contract case. 
D)  The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption. 
E)  Family members can never have the intent to be legally bound in their agreements because family matters are private matters.

Question 3

A provision in a contract for the sale and purchase of a business read as follows: "The vendor (Jones) shall not, directly or indirectly, in any capacity whatsoever, carry on a similar business in any location for one year." Six months later, Kates found that Jones was competing directly by opening up a similar business, contrary to the contract drafted by Kates. Kates sued Jones for breach of contract, namely, breach of the restrictive covenant. Which of the following best describes the legal position of the parties?

Accepted Answer

A)  This provision is in restraint of trade and causes the whole contract to be void. 
B)  Although this type of provision is illegal, this particular one would be enforceable because it is reasonable between the parties and not contrary to public policy. 
C)  Such provisions are always void, being an illegal restraint of trade. 
D)  Although this provision would be void, the remainder of the contract for the sale of the business would be enforceable. 
E)  Agreements such as these are always binding, being the result of a free bargain between the parties. 
A)  This provision is in restraint of trade and causes the whole contract to be void. 
B)  Although this type of provision is illegal, this particular one would be enforceable because it is reasonable between the parties and not contrary to public policy. 
C)  Such provisions are always void, being an illegal restraint of trade. 
D)  Although this provision would be void, the remainder of the contract for the sale of the business would be enforceable. 
E)  Agreements such as these are always binding, being the result of a free bargain between the parties.

Question 4

Ted, a seventeen-year-old high school student, was hired to perform in four episodes of Gossip Gidget. To keep up with his schoolwork and gaming, he contracted with Mr. Tech of Technoland for a $2000 laptop computer. He agreed to pay $500 down and the balance by monthly payments of $250. Read each of the following separately and indicate which is true.

Accepted Answer

A)  If Ted doesn't make his payments, Tech can sue Ted's parents because parents are liable for the debts of their minor children. 
B)  This contract is void; therefore, Tech can repossess the laptop which is technically still his whether Ted makes the payments or not. 
C)  If this contract is in writing and Ted doesn't make his payments, Tech can sue Ted for breach of contract. 
D)  This contract is a legal contract enforceable by Ted. 
E)  This contract is a legal contract enforceable against Ted. 
A)  If Ted doesn't make his payments, Tech can sue Ted's parents because parents are liable for the debts of their minor children. 
B)  This contract is void; therefore, Tech can repossess the laptop which is technically still his whether Ted makes the payments or not. 
C)  If this contract is in writing and Ted doesn't make his payments, Tech can sue Ted for breach of contract. 
D)  This contract is a legal contract enforceable by Ted. 
E)  This contract is a legal contract enforceable against Ted.

Question 5

When will the court waive the requirement of writing?

Accepted Answer

If the parties can produce evi

Question 6

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

Accepted Answer

Only some evidence consistent

Question 7

What is an indemnity?

Accepted Answer

A primary obligation

Question 8

Sam agreed to sell his house to Joe for $400,000, and although the agreement was not in writing, Joe gave Sam $25,000 as a deposit. Sam gave Joe a receipt for the $25,000, indicating that it had been received but not stating for what purpose. In the absence of any other writing, is this contract enforceable? Explain.

Accepted Answer

This depends on the jurisdiction. In mos

Question 9

Describe an "executory contract" and provide an example.

Accepted Answer

A contract yet to be performed

Question 10

The creation of a joint tenancy in land must be evidenced in writing.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following best describes an illegal contract?

Accepted Answer

A)  A contract that is illegal at the time it is formed 
B)  A contract that is illegal in the way in which it is performed 
C)  A contract that has been breached by one of the parties 
D)  A contract that lacks consensus, consideration, capacity, and intention 
E)  A contract that results in civil litigation 
A)  A contract that is illegal at the time it is formed 
B)  A contract that is illegal in the way in which it is performed 
C)  A contract that has been breached by one of the parties 
D)  A contract that lacks consensus, consideration, capacity, and intention 
E)  A contract that results in civil litigation

Question 12

Describe how infants are treated in contract law in Canada.

Accepted Answer

This is a relatively easy question but d

Question 13

Which of the following is incorrect with respect to the law of infants and their parents?

Accepted Answer

A)  As a general rule, parents are not responsible for the contracts of their children. 
B)  As a general rule, parents are not responsible for the torts of their children. 
C)  A parent is responsible for the debt of his child if that parent has guaranteed the loan. 
D)  A parent can be liable for a tort committed by her child if it can be shown that the parent was negligent as well. 
E)  A parent is responsible for the obligations of her children in both tort and contract law. 
A)  As a general rule, parents are not responsible for the contracts of their children. 
B)  As a general rule, parents are not responsible for the torts of their children. 
C)  A parent is responsible for the debt of his child if that parent has guaranteed the loan. 
D)  A parent can be liable for a tort committed by her child if it can be shown that the parent was negligent as well. 
E)  A parent is responsible for the obligations of her children in both tort and contract law.

Question 14

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

Accepted Answer

A)  Married women 
B)  Infants 
C)  Status Indians 
D)  Insane or intoxicated persons 
E)  Bankrupts 
A)  Married women 
B)  Infants 
C)  Status Indians 
D)  Insane or intoxicated persons 
E)  Bankrupts

Question 15

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his incapacity.

Accepted Answer

A) True 
 B)False

Question 16

Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?

Accepted Answer

A)  Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
B)  In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
C)  In domestic agreements, there is a presumption that there is no intention to be legally bound. 
D)  When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
E)  Commercial contacts are always binding, no matter what the stated intention. 
A)  Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
B)  In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
C)  In domestic agreements, there is a presumption that there is no intention to be legally bound. 
D)  When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
E)  Commercial contacts are always binding, no matter what the stated intention.

Question 17

Contracts to commit a crime or a tort are void.

Accepted Answer

A) True 
 B)False

Question 18

Randy, as his two older brothers before him, moved out of the house when he was quite young. When he was 17, he and his older brother, Ted, wanted to buy a condominium in Nelson. They both had jobs and the bank was willing to lend them money and take a mortgage on the condo. Which of the following is a correct statement about the law governing this situation?

Accepted Answer

A)  These contracts would be binding on Randy only if he disclosed the fact that he was a minor to the other parties. 
B)  All contracts with infants are void. 
C)  The mortgage agreement would be binding on Randy as an adult if he continued to make payments after reaching the age of majority. 
D)  A mortgage granted by Randy to the bank is effective until a court orders otherwise. 
E)  All infants' contracts are enforceable as soon as they become adults. 
A)  These contracts would be binding on Randy only if he disclosed the fact that he was a minor to the other parties. 
B)  All contracts with infants are void. 
C)  The mortgage agreement would be binding on Randy as an adult if he continued to make payments after reaching the age of majority. 
D)  A mortgage granted by Randy to the bank is effective until a court orders otherwise. 
E)  All infants' contracts are enforceable as soon as they become adults.

Question 19

In jurisdictions other than British Columbia, which of the following is correct with respect to the law of infants?

Accepted Answer

A)  An adult cannot enforce any contract against an infant while the infant is still under age unless the contract is made binding by another statute (e.g., government student loans). 
B)  An infant is bound by his contract for necessaries and beneficial contracts of service. 
C)  An infant is not bound to repay his government student loan. 
D)  A contract with an infant is "absolutely void" except those contracts for necessaries and beneficial contracts of service. 
E)  If the adult did not know he was dealing with an infant, the adult is not bound by the contract. 
A)  An adult cannot enforce any contract against an infant while the infant is still under age unless the contract is made binding by another statute (e.g., government student loans). 
B)  An infant is bound by his contract for necessaries and beneficial contracts of service. 
C)  An infant is not bound to repay his government student loan. 
D)  A contract with an infant is "absolutely void" except those contracts for necessaries and beneficial contracts of service. 
E)  If the adult did not know he was dealing with an infant, the adult is not bound by the contract.

Question 20

If a person says that he had not intended to be bound by an agreement when he entered it, there can be no contract.

Accepted Answer

A) True 
 B)False

Indicate what types of contracts are binding on infants.

A necessary element of a contract is that the parties must have the intention to be legally bound. Which of the following is true with regard to this element of a contract?

When will the court waive the requirement of writing?

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

What is an indemnity?

Describe an "executory contract" and provide an example.

The creation of a joint tenancy in land must be evidenced in writing.

Which of the following best describes an illegal contract?

Describe how infants are treated in contract law in Canada.

Which of the following is incorrect with respect to the law of infants and their parents?

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his incapacity.

Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?

Contracts to commit a crime or a tort are void.

In jurisdictions other than British Columbia, which of the following is correct with respect to the law of infants?

If a person says that he had not intended to be bound by an agreement when he entered it, there can be no contract.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

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

Indicate what types of contracts are binding on infants.

A necessary element of a contract is that the parties must have the intention to be legally bound. Which of the following is true with regard to this element of a contract?

When will the court waive the requirement of writing?

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

What is an indemnity?

Describe an "executory contract" and provide an example.

The creation of a joint tenancy in land must be evidenced in writing.

Which of the following best describes an illegal contract?

Describe how infants are treated in contract law in Canada.

Which of the following is incorrect with respect to the law of infants and their parents?

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his incapacity.

Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?

Contracts to commit a crime or a tort are void.

In jurisdictions other than British Columbia, which of the following is correct with respect to the law of infants?

If a person says that he had not intended to be bound by an agreement when he entered it, there can be no contract.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters