Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Smith ran a software design business. He needed someone to handle some of the product demonstrations, so he hired Janet to do this work. In the employment contract, he insisted that Janet promise that if she left the firm, she would not work for Smith's competitors within a stated period of time and within a stated geographical region. If Janet now wishes to leave the job, indicate the statement that accurately describes the likely effect of her promise.

Accepted Answer

A)  Such promises are in restraint of trade and thus the courts invariably hold them to be invalid. 
B)  Such promises are invariably held to be valid when they are part of the terms of employment and thus are given in consideration for getting the job. 
C)  Such promises are valid only if given under seal. 
D)  If the court holds such a promise to be invalid, then the whole employment contract is necessarily void as well. 
E)  If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged, then it will enforce it. 
A)  Such promises are in restraint of trade and thus the courts invariably hold them to be invalid. 
B)  Such promises are invariably held to be valid when they are part of the terms of employment and thus are given in consideration for getting the job. 
C)  Such promises are valid only if given under seal. 
D)  If the court holds such a promise to be invalid, then the whole employment contract is necessarily void as well. 
E)  If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged, then it will enforce it. E

Question 3

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

Accepted Answer

Here students must examine the basic idea that contract law presumes the parties to be in an equal bargaining position and the essential bargaining nature of the contract process. Some people in society are not able to look after their own interests in this kind of environment and need protection so they will not be taken advantage of by the other contracting party. Others have limited capacity to prevent abuses or to protect others. Infants, the insane, status Indians, corporations, bankrupts, and trade unions are some examples. Note that this is an all-or-nothing approach, and if students, when answering, have taken the next chapter as well, they can deal with situations where some people are vulnerable but not so much as to be incapacitated. Undue influence and duress are examples. Similarly, the courts will look at situations where the agreement itself is considered unconscionable because of some particular vulnerability and the contract itself is unfair.

Question 4

Which one of the following is an example of a contract that is binding on an infant in British Columbia?

Accepted Answer

A)  A contract to purchase a new stereo 
B)  A contract for a camera 
C)  A contract for baseball tickets 
D)  A contract for a DVD purchase 
E)  A contract for a student loan 
A)  A contract to purchase a new stereo 
B)  A contract for a camera 
C)  A contract for baseball tickets 
D)  A contract for a DVD purchase 
E)  A contract for a student loan

Question 5

Indicate what types of contracts are binding on infants.

Accepted Answer

Necessaries and beneficial con

Question 6

All contracts to restrict competition are void.

Accepted Answer

A) True 
 B)False

Question 7

When will the court waive the requirement of writing?

Accepted Answer

If the parties can produce evi

Question 8

"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.

Accepted Answer

Although an infant is responsi

Question 9

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

Accepted Answer

A)  An unwritten agreement to have a garage built on the land 
B)  An unwritten sale of land where the seller allowed the buyer to enter the property and commence construction thereon 
C)  An unwritten lease for a term of five years 
D)  An unwritten lease of a lawn mower used to maintain the land 
E)  An unwritten sale of land where the sale was acknowledged in subsequent correspondence signed by the party denying the existence of the sale 
A)  An unwritten agreement to have a garage built on the land 
B)  An unwritten sale of land where the seller allowed the buyer to enter the property and commence construction thereon 
C)  An unwritten lease for a term of five years 
D)  An unwritten lease of a lawn mower used to maintain the land 
E)  An unwritten sale of land where the sale was acknowledged in subsequent correspondence signed by the party denying the existence of the sale

Question 10

A void contract means that

Accepted Answer

A)  there is no contract. 
B)  the contract cannot be enforced. 
C)  the infant can escape the contract. 
D)  the adult can escape the contract. 
E)  the contract is illegal. 
A)  there is no contract. 
B)  the contract cannot be enforced. 
C)  the infant can escape the contract. 
D)  the adult can escape the contract. 
E)  the contract is illegal.

Question 11

In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?

Accepted Answer

A)  Holoboff was found liable for the tort of conspiracy to commit fraud. 
B)  Holoboff was found liable for breach of contract, despite being a minor. 
C)  Holoboff was not liable for anything, as minors can never be liable. 
D)  Holoboff's parents were automatically liable for Holoboff's tort. 
E)  Holoboff's parents were automatically liable for Holoboff's breach of contract. 
A)  Holoboff was found liable for the tort of conspiracy to commit fraud. 
B)  Holoboff was found liable for breach of contract, despite being a minor. 
C)  Holoboff was not liable for anything, as minors can never be liable. 
D)  Holoboff's parents were automatically liable for Holoboff's tort. 
E)  Holoboff's parents were automatically liable for Holoboff's breach of contract.

Question 12

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

Accepted Answer

It's True that some types of c

Question 13

How do the courts determine whether it is reasonable for the parties trying to enforce the agreement to think that a legally binding contract has been created?

Accepted Answer

They use t

Question 14

All contracts must be written to be binding.

Accepted Answer

A) True 
 B)False

Question 15

When a restriction is excessive and deemed to be an unreasonable restraint of trade, what is the usual result?

Accepted Answer

Normally, only that provision

Question 16

What is the term used when a person cannot understand the nature or consequences of his or her actions?

Accepted Answer

The answer of What is the term used when a...

Question 17

When parents have led a merchant to believe that their infant child is acting as their agent, the parents are liable.

Accepted Answer

A) True 
 B)False

Question 18

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

Accepted Answer

A) True 
 B)False

Question 19

What is the term for a written commitment whereby a person agrees to pay a debt if the debtor does not?

Accepted Answer

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

Question 20

Indicate the distinction between a guarantee and an indemnity.

Accepted Answer

A guarantee is a contingent obligation w

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

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

Which one of the following is an example of a contract that is binding on an infant in British Columbia?

Indicate what types of contracts are binding on infants.

All contracts to restrict competition are void.

When will the court waive the requirement of writing?

"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.

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

A void contract means that

In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

How do the courts determine whether it is reasonable for the parties trying to enforce the agreement to think that a legally binding contract has been created?

All contracts must be written to be binding.

When a restriction is excessive and deemed to be an unreasonable restraint of trade, what is the usual result?

What is the term used when a person cannot understand the nature or consequences of his or her actions?

When parents have led a merchant to believe that their infant child is acting as their agent, the parents are liable.

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

What is the term for a written commitment whereby a person agrees to pay a debt if the debtor does not?

Indicate the distinction between a guarantee and an indemnity.

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

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

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

Which one of the following is an example of a contract that is binding on an infant in British Columbia?

Indicate what types of contracts are binding on infants.

All contracts to restrict competition are void.

When will the court waive the requirement of writing?

"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.

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

A void contract means that

In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

How do the courts determine whether it is reasonable for the parties trying to enforce the agreement to think that a legally binding contract has been created?

All contracts must be written to be binding.

When a restriction is excessive and deemed to be an unreasonable restraint of trade, what is the usual result?

What is the term used when a person cannot understand the nature or consequences of his or her actions?

When parents have led a merchant to believe that their infant child is acting as their agent, the parents are liable.

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

What is the term for a written commitment whereby a person agrees to pay a debt if the debtor does not?

Indicate the distinction between a guarantee and an indemnity.

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