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

If a contract is not evidenced in writing this does not make it void under the Statute of Frauds; it is merely unenforceable. Explain this distinction.

Which one of the following is required to be evidenced in writing under the Statute of Frauds or its equivalent?

What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?

Assuming that all other elements of a contract are present, which of the following would most likely be held to be a binding contract, considering only the requirement that the object of a contract must be legal and not contrary to the public interest?

If a contract is not evidenced in writing this does not make it void, only unenforceable.

Which of the following attempts to form a contract would the court declare to be void?

When the terms of an agreement make it impossible to perform the contract within one full year from the time the contract is entered into, there must be evidence in writing for it to be enforceable.

Indicate 4 categories of persons that have their capacity to enter into contracts limited to some extent.

"Because of the Charter of Rights and Freedoms and various human rights legislation in all jurisdictions, status Indians no longer experience limited capacity in contract law." Discuss the accuracy of that statement.

Explain what is meant by "necessary."

Which of the following is true 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.

Zlotnik incorporated a company shortly after graduation. The company bought a truck and a computer. The company was short of operating capital so, through its agent Zlotnik, borrowed $10,000 from the bank. In consideration for its loan, the bank took, in addition to the company's promise to pay the bank both principal and interest, a security agreement on its truck and computer. The company made its payment each month without incident. Then the stock market took a tremendous fall, which caused the officer of the bank to call Zlotnik and ask him to guarantee the company's debt. The company was doing very well, so Zlotnik agreed to be guarantor of the debt. On these facts, which of the following is true?

The contract signed by XYZ Ltd. and Charles provided that the company would receive a licence to use the computer program that Charles was creating, that Charles would complete the program by January 15, 2015, that Charles would retain copyright, and that Charles would receive $10,000 on completion of his work. Two weeks before the due date, Charles told the president of the company that he was not going to complete the program on time. The president said, "Don't worry about it; get it done as soon as you can." Charles was 10 days late in completing the work. The delay caused the company to lose money, so it sued Charles for damages. On these facts (which you should assume can be proved), which of the following is false?

Sue had a beautiful lakeside cottage that had been in her family for years. Times became a little tight, and Sue decided she had no choice but to sell the property. Sue agreed to sell the cottage property to her neighbour Bob for the sum of $250,000. Although Sue was ecstatic about the price early on, she soon changed her mind. There were too many memories for her to give the property up. Which of the following, by itself, would be the biggest barrier to Bob in enforcing the agreement?

Which of the following agreements has to be in writing under the original Statute of Frauds in order to be enforceable?

In which of the following situations would the contract relating to land not be enforceable?

The nature of the legislation governing incorporation in each jurisdiction determines whether a corporation has its capacity to contract limited or not.

A woman forged her husband's signature on dozens of cheques. In an attempt to protect her from prosecution, the husband signed a letter prepared by the Bank agreeing to assume all liability for the forged cheques. What would the Court find in relation to this agreement?

In which of the following situations would there be an enforceable contract despite the lack of a written contract?

All commercial contracts must be evidenced by writing to be enforceable.