Question 1

Describe an "executory contract" and provide an example.

Accepted Answer

A contract yet to be performed

Question 2

In Horizon Resource Management Ltd.V.Blaze Energy Ltd.,one of the issues was whether Roll'n failed to comply with relevant legislation such that its contract was unenforceable due to illegality.After reviewing the law relating to illegal contracts and contracts performed illegally,the Court decided:

Accepted Answer

A) The breaches of legislation were willful and intentional and therefore the contract was void for illegality. 
B) The breaches of legislation were willful and intentional and therefore the contract was not void for illegality 
C) The contract was prohibited by legislation and therefore void for illegality 
D) The contract was not prohibited by legislation and therefore enforceable and not void for illegality. 
E) The contract was performed illegally and therefore unenforceable. 
A) The breaches of legislation were willful and intentional and therefore the contract was void for illegality. 
B) The breaches of legislation were willful and intentional and therefore the contract was not void for illegality 
C) The contract was prohibited by legislation and therefore void for illegality 
D) The contract was not prohibited by legislation and therefore enforceable and not void for illegality. 
E) The contract was performed illegally and therefore unenforceable.

Question 3

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

Accepted Answer

A) An agreement to sell a car on January 1 of the following year 
B) An agreement by a creditor to accept $800 in full satisfaction of a debt in the amount of $1000 
C) A lease of a vehicle for a term commencing on November 1,2016,and expiring November 1,2019 
D) An agreement for the sale of a farm animal 
E) An agreement for the sale of a building lot 
A) An agreement to sell a car on January 1 of the following year 
B) An agreement by a creditor to accept $800 in full satisfaction of a debt in the amount of $1000 
C) A lease of a vehicle for a term commencing on November 1,2016,and expiring November 1,2019 
D) An agreement for the sale of a farm animal 
E) An agreement for the sale of a building lot

Question 4

Which of the following is incorrect with respect to the law of incapacity?

Accepted Answer

A) To escape a contract on the basis of insanity,the insane person need only show that he did not know what he was doing at the time the contract was formed. 
B) Even after the passage of the Charter of Rights and Freedoms,some contracts entered into with status Indians cannot be enforced. 
C) Married women are no longer incapacitated. 
D) Some Crown corporations have limited capacity to contract. 
E) Trade unions may have limited capacity to contract. 
A) To escape a contract on the basis of insanity,the insane person need only show that he did not know what he was doing at the time the contract was formed. 
B) Even after the passage of the Charter of Rights and Freedoms,some contracts entered into with status Indians cannot be enforced. 
C) Married women are no longer incapacitated. 
D) Some Crown corporations have limited capacity to contract. 
E) Trade unions may have limited capacity to contract.

Question 5

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

Accepted Answer

A) Married women 
B) Infants 
C) Status Indians 
D) Insane or intoxicated persons 
E) Bankrupts 
A) Married women 
B) Infants 
C) Status Indians 
D) Insane or intoxicated persons 
E) Bankrupts

Question 6

In the legal sense,to what does "insanity" refer?

Accepted Answer

When a person cannot

Question 7

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

Accepted Answer

The operation of the free market is at t

Question 8

Contracts to commit a crime or a tort are void.

Accepted Answer

A) True 
 B)False

Question 9

When will the court waive the requirement of writing?

Accepted Answer

If the parties can produce evi

Question 10

When parents have led a merchant to believe that their infant child is acting as their agent,the parents are liable.

Accepted Answer

A) True 
 B)False

Question 11

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 $2500 a month from his pay to support her and their 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 12

What is the term for a written commitment whereby a person agrees to pay a debt if the debtor does not?

Accepted Answer

The answer of What is the term for a written...

Question 13

A provision in a contract for the sale and purchase of a business read as follows: "The vendor (Jones)shall not,directly or indirectly,in any capacity whatsoever,carry on a similar business in any location for one year." Six months later,Kates found that Jones was competing directly by opening up a similar business,contrary to the contract drafted by Kates.Kates sued Jones for breach of contract,namely,breach of the restrictive covenant.Which of the following best describes the legal position of the parties?

Accepted Answer

A) This provision is in restraint of trade and causes the whole contract to be void. 
B) Although this type of provision is illegal,this particular one would be enforceable because it is reasonable between the parties and not contrary to public policy. 
C) Such provisions are always void,being an illegal restraint of trade. 
D) Although this provision would be void,the remainder of the contract for the sale of the business would be enforceable. 
E) Agreements such as these are always binding,being the result of a free bargain between the parties. 
A) This provision is in restraint of trade and causes the whole contract to be void. 
B) Although this type of provision is illegal,this particular one would be enforceable because it is reasonable between the parties and not contrary to public policy. 
C) Such provisions are always void,being an illegal restraint of trade. 
D) Although this provision would be void,the remainder of the contract for the sale of the business would be enforceable. 
E) Agreements such as these are always binding,being the result of a free bargain between the parties.

Question 14

In which of the following situations would an infant be bound by the contract 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 15

"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 that statement.

Accepted Answer

The statement is inaccurate.Un

Question 16

If the court classifies the nature of a third-party agreement as a(n)________,there is no requirement of writing.

Accepted Answer

A) guarantee 
B) obligation 
C) indemnity 
D) provision 
E) equity 
A) guarantee 
B) obligation 
C) indemnity 
D) provision 
E) equity

Question 17

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

Accepted Answer

A) True 
 B)False

Question 18

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such treatment.

Accepted Answer

Here students must examine the basic ide

Question 19

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 15,2015,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 the program 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 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 an 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 an 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.

Describe an "executory contract" and provide an example.

In Horizon Resource Management Ltd.V.Blaze Energy Ltd.,one of the issues was whether Roll'n failed to comply with relevant legislation such that its contract was unenforceable due to illegality.After reviewing the law relating to illegal contracts and contracts performed illegally,the Court decided:

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

Which of the following is incorrect with respect to the law of incapacity?

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

In the legal sense,to what does "insanity" refer?

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

Contracts to commit a crime or a tort are void.

When will the court waive the requirement of writing?

When parents have led a merchant to believe that their infant child is acting as their agent,the parents are liable.

What is the term for a written commitment whereby a person agrees to pay a debt if the debtor does not?

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

"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 that statement.

If the court classifies the nature of a third-party agreement as a(n)________,there is no requirement of writing.

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such treatment.

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 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

Describe an "executory contract" and provide an example.

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

Which of the following is incorrect with respect to the law of incapacity?

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

In the legal sense,to what does "insanity" refer?

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

Contracts to commit a crime or a tort are void.

When will the court waive the requirement of writing?

When parents have led a merchant to believe that their infant child is acting as their agent,the parents are liable.

What is the term for a written commitment whereby a person agrees to pay a debt if the debtor does not?

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

"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 that statement.

If the court classifies the nature of a third-party agreement as a(n)________,there is no requirement of writing.

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such treatment.

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 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