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

"If an infant can't be sued in contract because of his age, the adult can often sue in tort instead, thus avoiding the protection given to the infant in a contract law." Discuss the accuracy of this statement.

Discuss agreements that restrict competition or that are a restraint of trade and how they are treated in contract law.

Whenever an adult enters into a contract with an infant, the adult is bound.

Joe had a classic Buick automobile and he agreed to trade it to Sam for a specified amount of cocaine. Sam took the car and, three days later, before he could deliver the cocaine to Joe, his cocaine was seized by the police and he was arrested. Joe is now bringing this action claiming that he's entitled to the car back. Indicate what arguments are available to Joe and the likelihood of him obtaining his car back.

Which of the following is correct with respect to the law of intention?

Joe entered into a contract to sell his house to Sam for $400,000. Explain under what circumstances this contract would be binding on the parties even where it was not in writing or evidenced by writing.

A signature equivalent for electronic documents might be a password or some other form of encryption.

Discuss the importance of putting contracts in writing, both from a legal perspective and from a practical business point of view.

Jones entered into a contract for the sale of his barber shop to Harry Cutter. One of the terms of the contract was that Jones would never open up a similar business within 50 kilometres of the location of the barber shop being sold. About two weeks after the sale, Cutter noticed a new barber shop opening across the street with brand-new facilities and equipment. When he learned that the owner of the new shop was the very Jones who sold the business to him, he sued for breach of contract. Which of the following correctly indicates the legal position of the parties?

Because of the Charter of Rights and Freedoms, status Indians no longer have their capacity to contract limited.

Negotiations between Dave and Mary resulted in the following agreement: Dave would sell his property to Mary for the sum of $150,000 with the closing date to be August 10. When the two completed their discussion, Mary paid Dave $5000 as part payment of the purchase price and received a receipt. The contract was not in writing. On August 10, Mary tendered the remainder of the money, but Dave refused to convey the property. Mary sued Dave for breach of contract. On these facts, which of the following is true? (Assume all facts can be proved.)

Once infants become adults, they are liable for any contract they made while they were infants.

Which of the following statements is correct with respect to the legality of contracts?

When there is a(n) ________ (a right to seize property), or when there is a right to set off a debt against the obligations created by the contract, the parties themselves may be able to enforce the contract without the help of the courts.

All contracts that have the effect of restricting competition are void.

An adult can't sue an infant in tort to get around the infant's contractual incapacity.

Which of the following are in no way incapacitated when entering into contracts?

A contract that has been partially performed will be enforceable even though it is not in writing as required under the Statute of Frauds.

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid and it is merely unenforceable by the courts.

Clem had wanted a piano for a long time. Although he was a minor, his mom gave him $300 and he took this with some savings and made a $500 down payment on a $3000 piano. The balance was to be paid over a three-year period. His mom signed the contract as a guarantor. Clem made the first three payments, but he damaged the piano trying to move it from the living room to his upstairs bedroom. He didn't have the money to get it fixed. He quit playing, lost interest, and quit making his payments. On these facts, which of the following is false?