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

The distinction between a guarantee and a(n)________ is important,because in most provinces the Statute of Frauds requires that only a guarantee be in writing.

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

Given the provisions of the Statute of Frauds,which of the following contracts should be evidenced in writing?

Indicate the distinction between a guarantee and an indemnity.

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.

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

What is an indemnity?

What is an executory contract?

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

Contracts involving domestic relationships are presumed to be binding.

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

Which one of the following correctly indicates the position of the parties in respect to contracts involving minors?

In Transport North American Express Inc.v.New Solutions Financial Corp.,various payments were found to be "interest" within the meaning of section 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?

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?

Mr.Buyer,the plaintiff in the action,was 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?

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

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.

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

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

Why was the Statute of Frauds originally passed?