Question 1

Explain how an insurance contract avoids being void as a wager.

Accepted Answer

The insured must have an insur

Question 2

Married women are no longer considered incapacitated in contract law.

Accepted Answer

A) True 
 B)False

Question 3

Give three examples of contracts that would be considered void because of illegality.

Accepted Answer

Contracts to commit a tort or

Question 4

Contracts involving activities that,while not illegal,are considered immoral or contrary to public interest,may also be void.

Accepted Answer

A) True 
 B)False

Question 5

Explain what is meant by "necessary."

Accepted Answer

Food,clothing,lodgin

Question 6

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?

Accepted Answer

A)  Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
B)  In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
C)  In domestic agreements, there is a presumption that there is no intention to be legally bound. 
D)  When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
E)  Commercial contacts are always binding, no matter what the stated intention. 
A)  Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
B)  In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
C)  In domestic agreements, there is a presumption that there is no intention to be legally bound. 
D)  When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
E)  Commercial contacts are always binding, no matter what the stated intention.

Question 7

The contract signed by XYZ Ltd.and Charles provided that the company would receive a licence to use the computer program that Charles was creating,that Charles would complete the program by January 15,2012,that Charles would retain copyright,and that Charles would receive $10 000 on completion of his work.Two weeks before the due date,Charles told the president of the company that he was not going to complete on time.The president said,"Don't worry about it; get it done as soon as you can." Charles was 10 days late in completing the work.The delay caused the company to lose money,so it sued Charles for damages.On these facts (which you should assume can be proved),which of the following is false?

Accepted Answer

A)  The company has the right to sue even though it is not a natural person. 
B)  If this case were heard in the B.C. Supreme Court, the judge would have to follow a precedent on the point set by the B.C. Court of Appeal. 
C)  Charles could enter his defence and could also enter a counterclaim if he felt he had an action against the company. 
D)  Charles could use equitable (promissory) estoppel as a defence. 
E)  The company doesn't have the right to sue because the law would presume that the parties did not intend to be legally bound. 
A)  The company has the right to sue even though it is not a natural person. 
B)  If this case were heard in the B.C. Supreme Court, the judge would have to follow a precedent on the point set by the B.C. Court of Appeal. 
C)  Charles could enter his defence and could also enter a counterclaim if he felt he had an action against the company. 
D)  Charles could use equitable (promissory) estoppel as a defence. 
E)  The company doesn't have the right to sue because the law would presume that the parties did not intend to be legally bound.

Question 8

In which of the following situations would an infant be bound by the contracts he has entered into?

Accepted Answer

A)  a contract for the purchase of a bike with which to race 
B)  a government student loan 
C)  a contract for the purchase of a new leather jacket, where the merchant was not aware that he had several other jackets at home 
D)  a contract for the purchase of theatre tickets 
E)  a written contract for the purchase of a new stereo 
A)  a contract for the purchase of a bike with which to race 
B)  a government student loan 
C)  a contract for the purchase of a new leather jacket, where the merchant was not aware that he had several other jackets at home 
D)  a contract for the purchase of theatre tickets 
E)  a written contract for the purchase of a new stereo

Question 9

Joe saw an ad in a paper for the sale of a house in a residential area of Victoria.He approached Sam,the owner,and after some negotiation Sam orally agreed to sell the house to Joe for $50 000.Joe gave Sam $10 000 cash as a partial payment,the rest to be given upon transfer of the house.Two days later,Sam changed his mind and sent Joe a letter referring to the deal and stating that he would not honour the agreement.Which of the following is correct with respect to the legal position of the parties? Assume all the facts can be proved.

Accepted Answer

A)  Sam is not bound by the agreement as the contract was not in writing. 
B)  Sam will not be bound because no oral agreement is ever enforceable. 
C)  Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing. 
D)  If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract. 
E)  The contract is void unless it has been partially performed. 
A)  Sam is not bound by the agreement as the contract was not in writing. 
B)  Sam will not be bound because no oral agreement is ever enforceable. 
C)  Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing. 
D)  If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract. 
E)  The contract is void unless it has been partially performed.

Question 10

Explain the legal position of an infant who enters into a contract with an adult.

Accepted Answer

Varies with the province.In most provinc

Question 11

If a contract is not evidenced in writing this does not make it void under the Statute of Frauds; it is merely unenforceable.Explain this distinction.

Accepted Answer

The contract is binding on the parties,b

Question 12

All of the following contracts would be illegal,and not binding on the parties,except

Accepted Answer

A)  a contract whereby one person agrees to spread false and damaging information about another. 
B)  a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another. 
C)  the act of paying for sexual favours (prostitution). 
D)  a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price. 
E)  a contract in which lawyer agrees to represent an accused where the accused did commit the crime. 
A)  a contract whereby one person agrees to spread false and damaging information about another. 
B)  a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another. 
C)  the act of paying for sexual favours (prostitution). 
D)  a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price. 
E)  a contract in which lawyer agrees to represent an accused where the accused did commit the crime.

Question 13

In Ascent Financial Services Ltd.v.Blythman,the Court decided

Accepted Answer

A)  that Anna and Art were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
B)  that Carolyn and Don were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
C)  that Carolyn and Don were in breach of only their fiduciary duty. 
D)  that Anna and Art were in neither in breach of the sale of goodwill agreement nor the non-competition agreement. 
E)  that Anna only and not Art was in breach of her fiduciary duty. 
A)  that Anna and Art were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
B)  that Carolyn and Don were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
C)  that Carolyn and Don were in breach of only their fiduciary duty. 
D)  that Anna and Art were in neither in breach of the sale of goodwill agreement nor the non-competition agreement. 
E)  that Anna only and not Art was in breach of her fiduciary duty.

Question 14

If a third party incurs a secondary liability for a debt,he has given a(n)___________.
a. indemnity
b. guarantee
c. obligation
d. debt
e. easement

Accepted Answer

A) True 
 B)False

Question 15

Sue had a beautiful lakeside cottage that had been in her family for years.Times became a little tight,and Sue decided she had no choice but to sell the property.Sue agreed to sell the cottage property to her neighbour Bob for the sum of $250 000.Although Sue was ecstatic about the price early on,she soon changed her mind.There were too many memories for her to give the property up.Which of the following,by itself,would be the biggest barrier to Bob enforcing the agreement?

Accepted Answer

A)  Unknown to Bob, at the time of the agreement Sue was mentally incapacitated. 
B)  The $250 000 price was not adequate, under the circumstances. 
C)  Bob and Sue had an agreement that their contract was not to be enforceable. 
D)  Although Sue had written a letter to Bob that discussed the essential terms of the agreement, Bob and Sue had not executed a written agreement. 
E)  No money had yet exchanged hands. 
A)  Unknown to Bob, at the time of the agreement Sue was mentally incapacitated. 
B)  The $250 000 price was not adequate, under the circumstances. 
C)  Bob and Sue had an agreement that their contract was not to be enforceable. 
D)  Although Sue had written a letter to Bob that discussed the essential terms of the agreement, Bob and Sue had not executed a written agreement. 
E)  No money had yet exchanged hands.

Question 16

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.

Accepted Answer

A)  An intention to be legally bound is a necessary element of a contract; without it there is no contract. 
B)  Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present. 
C)  The court will presume there is no intent to be legally bound in social situations. 
D)  Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary. 
E)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions. 
A)  An intention to be legally bound is a necessary element of a contract; without it there is no contract. 
B)  Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present. 
C)  The court will presume there is no intent to be legally bound in social situations. 
D)  Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary. 
E)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions.

Question 17

Requirements of a contract include capacity of the parties to contract,legality,and intention of the parties to be legally bound.Which of the following is false with regard to these elements?

Accepted Answer

A)  A restrictive covenant prohibiting one party to the contract from competing with the other is enforceable if it is reasonable between the parties and not contrary to public policy. 
B)  The court can presume the intention of the parties to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption. 
C)  If an adult cannot sue the other party to the contract because he is a minor, neither can the infant sue the adult. 
D)  A seller that contracts with an infant cannot avoid the difficulties of enforcing the contract by suing him in tort instead of breach of contract. 
E)  A person with mental incapacity might still be held to a contract even if, at the time of the contract, he didn't understand the nature and quality of his act. 
A)  A restrictive covenant prohibiting one party to the contract from competing with the other is enforceable if it is reasonable between the parties and not contrary to public policy. 
B)  The court can presume the intention of the parties to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption. 
C)  If an adult cannot sue the other party to the contract because he is a minor, neither can the infant sue the adult. 
D)  A seller that contracts with an infant cannot avoid the difficulties of enforcing the contract by suing him in tort instead of breach of contract. 
E)  A person with mental incapacity might still be held to a contract even if, at the time of the contract, he didn't understand the nature and quality of his act.

Question 18

Discuss the Statute of Frauds as it relates to contract law.In your answer,consider the justification of requiring some contracts to be evidenced in writing,and also how and why the Statute of Frauds has been modified or repealed in several jurisdictions.

Accepted Answer

One of the mistakes made most often abou

Question 19

Joe was unable to find work in the city where he lived and had to go to the mining camps up north to find work.When he left,he agreed to send his wife $500 a month from his pay for the support of her and the children.In fact,he had some unexpected expenses and failed to send the promised funds for two months.Which of the following correctly states the legal position of the parties?

Accepted Answer

A)  Since this is a domestic relationship, there is a presumption that there is no contract. 
B)  Since this is a domestic relationship, there is a presumption that there is a contract. 
C)  Because of the marital obligation, there is always an enforceable contract in these circumstances. 
D)  The court will make no presumptions in these circumstances because there is never a contract between husband and wife. 
E)  The court will enforce the promise only if they determine it to be reasonable. 
A)  Since this is a domestic relationship, there is a presumption that there is no contract. 
B)  Since this is a domestic relationship, there is a presumption that there is a contract. 
C)  Because of the marital obligation, there is always an enforceable contract in these circumstances. 
D)  The court will make no presumptions in these circumstances because there is never a contract between husband and wife. 
E)  The court will enforce the promise only if they determine it to be reasonable.

Question 20

The case of Canadian Imperial Bank of Commerce v.Milhomens examined the effect of one party's insanity on a contract.What did the Court find?

Accepted Answer

A)  For a contract to be voidable because of insanity, one party must be insane and the other party must have known (or ought to have known) of the insanity. 
B)  If a person has the mental faculties to sign a contract, that person cannot be insane. 
C)  If a insane person enters into a contract, that contract is automatically void. 
D)  Contracts are not enforceable by either party if one party can establish a mental defect. 
E)  The relevant test for insanity is simply whether one party believed the other to be insane, at the moment the offer was made. 
A)  For a contract to be voidable because of insanity, one party must be insane and the other party must have known (or ought to have known) of the insanity. 
B)  If a person has the mental faculties to sign a contract, that person cannot be insane. 
C)  If a insane person enters into a contract, that contract is automatically void. 
D)  Contracts are not enforceable by either party if one party can establish a mental defect. 
E)  The relevant test for insanity is simply whether one party believed the other to be insane, at the moment the offer was made.

Explain how an insurance contract avoids being void as a wager.

Married women are no longer considered incapacitated in contract law.

Give three examples of contracts that would be considered void because of illegality.

Contracts involving activities that,while not illegal,are considered immoral or contrary to public interest,may also be void.

Explain what is meant by "necessary."

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?

In which of the following situations would an infant be bound by the contracts he has entered into?

Explain the legal position of an infant who enters into a contract with an adult.

If a contract is not evidenced in writing this does not make it void under the Statute of Frauds; it is merely unenforceable.Explain this distinction.

All of the following contracts would be illegal,and not binding on the parties,except

In Ascent Financial Services Ltd.v.Blythman,the Court decided

If a third party incurs a secondary liability for a debt,he has given a(n)___________. a. indemnity b. guarantee c. obligation d. debt e. easement

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.

Requirements of a contract include capacity of the parties to contract,legality,and intention of the parties to be legally bound.Which of the following is false with regard to these elements?

Discuss the Statute of Frauds as it relates to contract law.In your answer,consider the justification of requiring some contracts to be evidenced in writing,and also how and why the Statute of Frauds has been modified or repealed in several jurisdictions.

The case of Canadian Imperial Bank of Commerce v.Milhomens examined the effect of one party's insanity on a contract.What did the Court find?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

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

Explain how an insurance contract avoids being void as a wager.

Married women are no longer considered incapacitated in contract law.

Give three examples of contracts that would be considered void because of illegality.

Contracts involving activities that,while not illegal,are considered immoral or contrary to public interest,may also be void.

Explain what is meant by "necessary."

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?

In which of the following situations would an infant be bound by the contracts he has entered into?

Explain the legal position of an infant who enters into a contract with an adult.

If a contract is not evidenced in writing this does not make it void under the Statute of Frauds; it is merely unenforceable.Explain this distinction.

All of the following contracts would be illegal,and not binding on the parties,except

In Ascent Financial Services Ltd.v.Blythman,the Court decided

If a third party incurs a secondary liability for a debt,he has given a(n)___________. a. indemnity b. guarantee c. obligation d. debt e. easement

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.

Requirements of a contract include capacity of the parties to contract,legality,and intention of the parties to be legally bound.Which of the following is false with regard to these elements?

Discuss the Statute of Frauds as it relates to contract law.In your answer,consider the justification of requiring some contracts to be evidenced in writing,and also how and why the Statute of Frauds has been modified or repealed in several jurisdictions.

The case of Canadian Imperial Bank of Commerce v.Milhomens examined the effect of one party's insanity on a contract.What did the Court find?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters