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

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.

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

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

Corporate bodies created by special legislation invariably lack capacity to enter into binding agreements.

"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.

If a third party incurs a secondary liability for a debt, he has given a(n)

Parents are responsible for their children's actions in which of the following situations?

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

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

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.

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 involving domestic relationships are presumed to be binding.

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

Which of the following is incorrect with respect to the law of incapacity?

In Transport North American Express Inc. v. New Solutions Financial Corp., various payments were found to be "interest" within the meaning of s. 347 of the Criminal Code. The interest rate applied was illegal. The Supreme Court applied "notional severance," resulting in a reduction of the interest rate. The Supreme Court of Canada outlined four factors to consider when deciding whether to declare an illegal contract void, or to partially enforce it. Which of the following is not one of those factors?

"A person's intention to be bound by contracts is presumed." Discuss the accuracy of that statement.

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?

The court may hold that a contract is void, voidable, unenforceable, or illegal. Which of the following is true with regard to these terms and the court's use of them?

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

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.)