Question 1

What is the age of majority in your province?

Accepted Answer

The age of majority

Question 2

Indicate any limitation on the ability of status Indians to contract.

Accepted Answer

The Indian Act, supported by t

Question 3

Mr. Buyer, the plaintiff in the action, is attempting to enforce a contract in which the defendant, Mr. Seller agreed to sell to Buyer his property, Blackacre, for $100,000. Which of the following, by itself, would be sufficient to allow Mr. Seller to get out of the contract?

Accepted Answer

A)  The $100,000 was not enough, so was not fair. 
B)  At the time of the contract, unknown to Mr. Buyer, Mr. Seller did not understand the quality and nature of this act because of mental incapacity. 
C)  Although there was a letter from Mr. Seller referring to its essential terms, the contract itself was not in writing. 
D)  Although both parties agreed to this, there had not actually been any money paid on the contract, not even a deposit or a down payment. 
E)  The parties clearly stated that they did not want the agreement to be legally binding. 
A)  The $100,000 was not enough, so was not fair. 
B)  At the time of the contract, unknown to Mr. Buyer, Mr. Seller did not understand the quality and nature of this act because of mental incapacity. 
C)  Although there was a letter from Mr. Seller referring to its essential terms, the contract itself was not in writing. 
D)  Although both parties agreed to this, there had not actually been any money paid on the contract, not even a deposit or a down payment. 
E)  The parties clearly stated that they did not want the agreement to be legally binding.

Question 4

Indicate under what circumstances parents are responsible for the contracts entered into by their children.

Accepted Answer

Only where the child was actin

Question 5

Indicate the distinction between a guarantee and an indemnity.

Accepted Answer

A guarantee is a contingent obligation w

Question 6

Contracts that unduly restrict competition are void.

Accepted Answer

A) True 
 B)False

Question 7

What does the decision in Bayview Credit Union Ltd. v. Daigle illustrate?

Accepted Answer

A)  Businesspeople are at a risk when dealing with minors as if they are adults. 
B)  Parents are responsible for contracts made by their children. 
C)  Contracts made by children are void. 
D)  When a minor enters into a contract, there is no consideration. 
E)  A person under the age of majority cannot intend to enter into a contract. 
A)  Businesspeople are at a risk when dealing with minors as if they are adults. 
B)  Parents are responsible for contracts made by their children. 
C)  Contracts made by children are void. 
D)  When a minor enters into a contract, there is no consideration. 
E)  A person under the age of majority cannot intend to enter into a contract.

Question 8

Joe saw an ad in a paper for the sale of a house in a residential area of Victoria. He approached Sam, the owner, and after some negotiation Sam orally agreed to sell the house to Joe for $750,000. Joe gave Sam $100,000 cash as a partial payment, the rest to be given upon transfer of the house. Two days later, Sam changed his mind and sent Joe a letter referring to the deal and stating that he would not honour the agreement. Which of the following is correct with respect to the legal position of the parties? Assume all the facts can be proved.

Accepted Answer

A)  Sam is not bound by the agreement as the contract was not in writing. 
B)  Sam will not be bound because no oral agreement is ever enforceable. 
C)  Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing. 
D)  If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract. 
E)  The contract is void unless it has been partially performed. 
A)  Sam is not bound by the agreement as the contract was not in writing. 
B)  Sam will not be bound because no oral agreement is ever enforceable. 
C)  Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing. 
D)  If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract. 
E)  The contract is void unless it has been partially performed.

Question 9

Which of the following is false with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

Accepted Answer

A)  An intention to be legally bound is a necessary element of a contract; without it there is no contract. 
B)  Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present. 
C)  The court will presume there is no intent to be legally bound in social situations. 
D)  Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary. 
E)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions. 
A)  An intention to be legally bound is a necessary element of a contract; without it there is no contract. 
B)  Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present. 
C)  The court will presume there is no intent to be legally bound in social situations. 
D)  Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary. 
E)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions.

Question 10

Only contracts that involve the commission of a crime or tort are void on the basis of illegality.

Accepted Answer

A) True 
 B)False

Question 11

In most jurisdictions, if the court classifies the nature of a third-party agreement as a guarantee, there is no requirement of writing.

Accepted Answer

A) True 
 B)False

Question 12

Contracts may be in writing, under seal, verbal, or even implied.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following contracts is void?

Accepted Answer

A)  A contract with an insane person for a TV, where the insane person, or his legal representative, can prove that he was insane at the time of the contract but cannot prove anything else about the incident 
B)  A contract with an insane person for necessaries such as food and shelter 
C)  A contract containing an exculpatory clause limiting the liability of one of the parties 
D)  Any contract with a status Indian 
E)  A contract to sell a bag of cocaine 
A)  A contract with an insane person for a TV, where the insane person, or his legal representative, can prove that he was insane at the time of the contract but cannot prove anything else about the incident 
B)  A contract with an insane person for necessaries such as food and shelter 
C)  A contract containing an exculpatory clause limiting the liability of one of the parties 
D)  Any contract with a status Indian 
E)  A contract to sell a bag of cocaine

Question 14

Only contracts involving significant sums of money must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

Contracts may be in writing, they may be under seal, or they may simply be verbal, but they may not be implied from the conduct of the parties.

Accepted Answer

A) True 
 B)False

Question 16

Joe sold Harry his barbershop, but Harry wanted a commitment on Joe's part that he would not open up another barbershop in the area after he got the money. Explain how the parties could include a clause in their agreement to that end without it being void as a restraint of trade.

Accepted Answer

As long as the provision goes no farther

Question 17

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

Accepted Answer

The answer of What is the term for a primary...

Question 18

"A verbal contract is every bit as binding as a written one." Discuss the validity of that statement.

Accepted Answer

The Statute of Frauds requires

Question 19

All contracts must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 20

How is a person of weakened intellect or who is otherwise vulnerable (but not insane or mentally incompetent) protected in terms of contract law?

Accepted Answer

The legal principle

What is the age of majority in your province?

Indicate any limitation on the ability of status Indians to contract.

Mr. Buyer, the plaintiff in the action, is attempting to enforce a contract in which the defendant, Mr. Seller agreed to sell to Buyer his property, Blackacre, for $100,000. Which of the following, by itself, would be sufficient to allow Mr. Seller to get out of the contract?

Indicate under what circumstances parents are responsible for the contracts entered into by their children.

Indicate the distinction between a guarantee and an indemnity.

Contracts that unduly restrict competition are void.

What does the decision in Bayview Credit Union Ltd. v. Daigle illustrate?

Which of the following is false with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

Only contracts that involve the commission of a crime or tort are void on the basis of illegality.

In most jurisdictions, if the court classifies the nature of a third-party agreement as a guarantee, there is no requirement of writing.

Contracts may be in writing, under seal, verbal, or even implied.

Which of the following contracts is void?

Only contracts involving significant sums of money must be in writing to be enforceable.

Contracts may be in writing, they may be under seal, or they may simply be verbal, but they may not be implied from the conduct of the parties.

Joe sold Harry his barbershop, but Harry wanted a commitment on Joe's part that he would not open up another barbershop in the area after he got the money. Explain how the parties could include a clause in their agreement to that end without it being void as a restraint of trade.

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

"A verbal contract is every bit as binding as a written one." Discuss the validity of that statement.

All contracts must be in writing to be enforceable.

How is a person of weakened intellect or who is otherwise vulnerable (but not insane or mentally incompetent) protected in terms of contract law?

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

What is the age of majority in your province?

Indicate any limitation on the ability of status Indians to contract.

Mr. Buyer, the plaintiff in the action, is attempting to enforce a contract in which the defendant, Mr. Seller agreed to sell to Buyer his property, Blackacre, for $100,000. Which of the following, by itself, would be sufficient to allow Mr. Seller to get out of the contract?

Indicate under what circumstances parents are responsible for the contracts entered into by their children.

Indicate the distinction between a guarantee and an indemnity.

Contracts that unduly restrict competition are void.

What does the decision in Bayview Credit Union Ltd. v. Daigle illustrate?

Which of the following is false with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

Only contracts that involve the commission of a crime or tort are void on the basis of illegality.

In most jurisdictions, if the court classifies the nature of a third-party agreement as a guarantee, there is no requirement of writing.

Contracts may be in writing, under seal, verbal, or even implied.

Which of the following contracts is void?

Only contracts involving significant sums of money must be in writing to be enforceable.

Contracts may be in writing, they may be under seal, or they may simply be verbal, but they may not be implied from the conduct of the parties.

Joe sold Harry his barbershop, but Harry wanted a commitment on Joe's part that he would not open up another barbershop in the area after he got the money. Explain how the parties could include a clause in their agreement to that end without it being void as a restraint of trade.

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

"A verbal contract is every bit as binding as a written one." Discuss the validity of that statement.

All contracts must be in writing to be enforceable.

How is a person of weakened intellect or who is otherwise vulnerable (but not insane or mentally incompetent) protected in terms of contract law?

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