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

"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 this 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?

From the perspective of contract law,why might the distinction between a guarantee and an indemnity be important?

In his last year of high school,Larry,a minor,saw a friend's computer and felt that the word-processing function would help him get through high school.He visited Computer Heaven Ltd.and contracted for an Apple Macintosh,printer,paper,and the program.The total cost was $4000.He paid $1800 down and promised to pay another $300 next July 3,his birthday,the remainder to be paid in monthly installments of $100.Larry made the July 3 payment and some of the monthly payments,but by then had graduated,thanks to his passing mark in English,and didn't have a use for the computer anymore.Furthermore,he wanted to save his money for a down payment on a compact disc player and speakers.When he quit making payments to Computer Heaven,the balance outstanding was $1700.Based on these facts,which of the following is true?

Contracts that unduly restrict competition are void.

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

Zlotnik incorporated a company shortly after graduation.The company bought a truck and a computer.Short of operating capital,the company,through its agent Zlotnik,borrowed $10 000 from the bank.In consideration for its loan,the bank took,in addition to the company's promise to pay the bank both principal and interest,a mortgage of its truck and computer.The company made its payment each month without incident.For reasons still unknown,the stock market took a tremendous fall,which caused the officer of the bank to call Zlotnik and ask him to guarantee the company's debt.The company was doing very well,so Zlotnik agreed to be guarantor of the debt.His oral assurances were sufficient for the bank officer.On these facts,which of the following is true?

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

When there is a(n)________ (a right to seize property),or when there is a right to set off a debt against the obligations created by the contract,the parties themselves may be able to enforce the contract,without the help of the courts.

Clem had wanted a piano for a long time.Although he was a minor,his mom gave him $300 and he took this with some savings and made a $500 down payment on a $3000 piano.The balance was to be paid over a three-year period.His mom signed the contract as a guarantor.Clem made the first three payments,but he damaged the piano trying to move it from the living room to his upstairs bedroom.He didn't have the money to get it fixed.He quit playing,lost interest,and quit making his payments.On these facts,which of the following is false?

Jones entered into a contract for the sale of his barber shop to Harry Cutter.One of the terms of the contract was that Jones would never open up a similar business within 50 kilometres of the location of the barber shop being sold.About two weeks after the sale,Cutter noticed a new barber shop opening across the street with brand-new facilities and equipment.When he learned that the owner of the new shop was the very Jones who sold the business to him,he sued for breach of contract.Which of the following correctly indicates the legal position of the parties?

Which of the following agreements has to be in writing under the original Statute of Frauds in order to be enforceable?

Describe three situations in your jurisdiction where a contract must be evidenced in writing to be enforceable.

Indicate any limitation on the ability of status Indians to contract.

An adult can't sue an infant in tort to get around the infant's contractual incapacity.

What is a guarantee?

Only contracts involving significant sums of money must be in writing to be enforceable.

If a person says that he had not intended to be bound by an agreement when he entered it,there can be no contract.

One afternoon while Mr.Reston was going home on the bus,his neighbour,Mr.Outovit,offered to sell Reston his car for $4000,a bit below the market value.Reston said,"You might change your mind on that.Better not be too hasty with your offers." Outovit answered,"I want to sell it quickly," and wrote on the back of an envelope,"I hereby offer my neighbour,Reston,my 2011 Chevrolet for $4000 cash." He signed his name.Reston wrote,"I accept." The next day,Reston went to his neighbour's house to pay the money and get the car.He learned that Outovit was in hospital suffering from a reaction to medicines given him the day before.If Outovit (or his legal representative)refuses to honour the contract on the basis of mental incapacity,which of the following is true?

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