Question 1

Which of the following statements is correct with respect to the legality of contracts?

Accepted Answer

A) A judge can refuse to enforce a contract that involves conduct that is not prohibited by law but which court precedent considers morally unacceptable. 
B) When two merchants agree not to sell a certain product below an agreed price and the product is not readily available from others sources,this is legally permissible as long as they intend their promises to be legally binding. 
C) Insurance taken out on property you don't own is valid as long as the insurance company has been informed that you have no interest in the property. 
D) An agreement that one merchant won't open up a business in competition with another is enforceable as long as there is consideration on both sides. 
E) An agreement where one party agrees to pay another to sue a third for tort is legally enforceable. 
A) A judge can refuse to enforce a contract that involves conduct that is not prohibited by law but which court precedent considers morally unacceptable. 
B) When two merchants agree not to sell a certain product below an agreed price and the product is not readily available from others sources,this is legally permissible as long as they intend their promises to be legally binding. 
C) Insurance taken out on property you don't own is valid as long as the insurance company has been informed that you have no interest in the property. 
D) An agreement that one merchant won't open up a business in competition with another is enforceable as long as there is consideration on both sides. 
E) An agreement where one party agrees to pay another to sue a third for tort is legally enforceable. A

Question 2

Which of the following types of contracts would not be considered illegal?

Accepted Answer

A) Contracts that reasonably restraint trade 
B) Contracts to commit a tort 
C) Contracts preventing someone from marrying 
D) Contracts that obstruct justice 
E) Contracts that promote litigation 
A) Contracts that reasonably restraint trade 
B) Contracts to commit a tort 
C) Contracts preventing someone from marrying 
D) Contracts that obstruct justice 
E) Contracts that promote litigation A

Question 3

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

Accepted Answer

A) always enforceable because the parties to a contract have the freedom to contract as they see fit. 
B) always unenforceable because any attempt to restrict competition is an illegal restraint of trade. 
C) fatal to the whole contract (i.e.,it causes the whole contract to fail). 
D) enforceable if it is reasonable between the parties,which means that it must be limited in time (e.g.,one year)but need not be limited in area. 
E) enforceable if it is reasonable between the parties and not contrary to public policy. 
A) always enforceable because the parties to a contract have the freedom to contract as they see fit. 
B) always unenforceable because any attempt to restrict competition is an illegal restraint of trade. 
C) fatal to the whole contract (i.e.,it causes the whole contract to fail). 
D) enforceable if it is reasonable between the parties,which means that it must be limited in time (e.g.,one year)but need not be limited in area. 
E) enforceable if it is reasonable between the parties and not contrary to public policy. E

Question 4

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 $400,000.They shook hands on the deal and Sam went home.That night,while thinking about it,Sam realized that the house 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 $400,000,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.

Accepted Answer

The letter that Sam sent satis

Question 5

How do the courts determine whether a customer should have taken an exaggerated claim seriously?

Accepted Answer

They use t

Question 6

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

Accepted Answer

A) debtor 
B) binding agreement 
C) promise 
D) indemnity 
E) guarantor 
A) debtor 
B) binding agreement 
C) promise 
D) indemnity 
E) guarantor

Question 7

Which of the following statements correctly illustrates a legal signature for online commercial transactions?

Accepted Answer

A) Clicking an "I Reject" dialogue box. 
B) Signing your name at the bottom of a standard form,and then not mailing it to the business. 
C) Opening an online shopping basket and adding several items to the basket. 
D) Attaching an electronic signature to an electronic document. 
E) Attaching a signature on your computer screen. 
A) Clicking an "I Reject" dialogue box. 
B) Signing your name at the bottom of a standard form,and then not mailing it to the business. 
C) Opening an online shopping basket and adding several items to the basket. 
D) Attaching an electronic signature to an electronic document. 
E) Attaching a signature on your computer screen.

Question 8

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?

Accepted Answer

A) If someone contracts with an insane person but there was no indication of mental illness,the contract can be binding. 
B) A contract by an insane person for necessities,such as food,is binding. 
C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane. 
D) If a mentally impaired person cannot avoid a contract on the basis of insanity,the court could still set the contract aside for being an "unconscionable" transaction. 
E) If you knew that you were negotiating a new lease,but that you weren't being as effective as you wanted to be because you had been drinking,you can have the resulting contract set aside. 
A) If someone contracts with an insane person but there was no indication of mental illness,the contract can be binding. 
B) A contract by an insane person for necessities,such as food,is binding. 
C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane. 
D) If a mentally impaired person cannot avoid a contract on the basis of insanity,the court could still set the contract aside for being an "unconscionable" transaction. 
E) If you knew that you were negotiating a new lease,but that you weren't being as effective as you wanted to be because you had been drinking,you can have the resulting contract set aside.

Question 9

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

Accepted Answer

A) The $100,000 was not enough,so was not fair. 
B) At the time of the contract,unknown to Mr.Buyer,Mr.Seller did not understand the quality and nature of this act because of mental incapacity. 
C) Mr.Buyer referred to essential terms in a letter sent to Mr.Seller. 
D) Although both parties agreed to this,there had not actually been any money paid on the contract,not even a deposit or a down payment. 
E) There was only a verbal agreement between Mr.Seller and Mr.Buyer. 
A) The $100,000 was not enough,so was not fair. 
B) At the time of the contract,unknown to Mr.Buyer,Mr.Seller did not understand the quality and nature of this act because of mental incapacity. 
C) Mr.Buyer referred to essential terms in a letter sent to Mr.Seller. 
D) Although both parties agreed to this,there had not actually been any money paid on the contract,not even a deposit or a down payment. 
E) There was only a verbal agreement between Mr.Seller and Mr.Buyer.

Question 10

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

Accepted Answer

The insured must have an insur

Question 11

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

Accepted Answer

It's true that some types of c

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What must a person establish in order to escape contractual obligations on the basis on insanity?

Accepted Answer

That he was insane at the time of the co

Question 14

Explain what is meant by "necessary."

Accepted Answer

Food,clothing,lodgin

Question 15

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

Accepted Answer

Normally,only that provision i

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

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) Where intention is the issue,there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
E) Since domestic relationships are serious,the parties to such relationships are always bound by their contracts with each other. 
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) Where intention is the issue,there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
E) Since domestic relationships are serious,the parties to such relationships are always bound by their contracts with each other.

Question 18

"Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.

Accepted Answer

This statement is not accurate.Verbal co

Question 19

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 in 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 20

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

Which of the following statements is correct with respect to the legality of contracts?

Which of the following types of contracts would not be considered illegal?

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

How do the courts determine whether a customer should have taken an exaggerated claim seriously?

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

Which of the following statements correctly illustrates a legal signature for online commercial transactions?

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?

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

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

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

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

What must a person establish in order to escape contractual obligations on the basis on insanity?

Explain what is meant by "necessary."

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

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

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

"Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.

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.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: The Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence,Professional Liability,and Insurance

The Elements of a Contract: Consensus and Consideration

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

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

Which of the following statements is correct with respect to the legality of contracts?

Which of the following types of contracts would not be considered illegal?

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

How do the courts determine whether a customer should have taken an exaggerated claim seriously?

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

Which of the following statements correctly illustrates a legal signature for online commercial transactions?

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?

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

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

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

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

What must a person establish in order to escape contractual obligations on the basis on insanity?

Explain what is meant by "necessary."

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

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

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

"Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.

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.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: The Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence,Professional Liability,and Insurance

The Elements of a Contract: Consensus and Consideration

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters