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

If the relationship between the contracting parties is primarily commercial in nature,what do the courts presume?

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.

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

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

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

The first Statute of Frauds was enacted in the United States in the 20th century.

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

"A verbal contract is every bit as binding as a written one." Discuss the validity of this statement.

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

Which of the following contracts is void?

When the terms of the 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.

"The purpose of contract law is to give effect to the reasonable expectations of the parties to a contract." Discuss this observation in terms of the five elements that are required for the creation of a legally binding contract.

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

In the classic case of Carlill v.Carbolic Smoke Ball Company,the defendants manufactured a product they claimed would protect against influenza.The company advertised that it would pay a specific sum of money to anyone who contracted influenza while using their product,and put money on deposit to demonstrate their sincerity.When Mrs.Carlill claimed the money,the company argued that these statements were not intended to be taken seriously.What did the Court decide?

Discuss,providing examples,situations in which an agreement would be invalid due to a lack of intention,including any presumptions that arise.

A void contract means that

"Where the Statute of Frauds applies and the requirement of writing is not met in an agreement between two parties,the contract is void." Discuss the validity of this statement.

Joe advertised his house for sale,and Sam came to have a look at it.While there,they haggled and struck a bargain that Sam would purchase the house for $200 000.They shook hands on the deal and Sam went home.That night,while thinking about it,he realized that it wasn't exactly what he wanted,and so the next day he wrote a letter to Joe stating,"I'm writing this note to let you know that I've changed my mind with respect to the purchase of your home for $200 000,and since the contract isn't valid in any case,I don't expect to hear any more of the matter.Sincerely,Sam." Joe sued Sam for breach of contract.Discuss the legal position of the parties,including any defences available to Sam.

A(n)________ describes a relationship in which a third party assumes a primary obligation for the repayment of the debt along with the debtor.

A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract.Which of the following is incorrect with respect to the law of incapacity?