Question 1

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 a 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 a lawyer agrees to represent an accused where the accused did commit the crime.

Question 2

Smith ran a software design business.He needed someone to handle some of the product demonstrations,so he hired Janet to do this work.In the employment contract,he insisted that Janet promise that if she left the firm,she would not work for Smith's competitors within a stated period of time and within a stated geographical region.If Janet now wishes to leave the job,indicate the statement that accurately describes the likely effect of her promise.

Accepted Answer

A) Such promises are in restraint of trade and thus the courts invariably hold them to be invalid. 
B) Such promises are invariably held to be valid when they are part of the terms of employment and thus are given in consideration for getting the job. 
C) Such promises are valid only if given under seal. 
D) If the court holds such a promise to be invalid,then the whole employment contract is necessarily void as well. 
E) If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged,then it will enforce it. 
A) Such promises are in restraint of trade and thus the courts invariably hold them to be invalid. 
B) Such promises are invariably held to be valid when they are part of the terms of employment and thus are given in consideration for getting the job. 
C) Such promises are valid only if given under seal. 
D) If the court holds such a promise to be invalid,then the whole employment contract is necessarily void as well. 
E) If the court thinks that such a promise is reasonable between the employer and employee and that the public interest will not be damaged,then it will enforce it.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Contracts may be in writing,under seal,verbal,or even implied.

Accepted Answer

A) True 
 B)False

Question 5

"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.

Accepted Answer

Here students would be expected to show

Question 6

Which of the following contracts is void?

Accepted Answer

A) A contract with an insane person for a TV,where the insane person,or his legal representative,can prove that he was insane at the time of the contract but cannot prove anything else about the incident 
B) A contract with an insane person for necessaries such as food and shelter 
C) A contract containing an exculpatory clause limiting the liability of one of the parties 
D) Any contract with a status Indian 
E) A contract to sell a bag of cocaine 
A) A contract with an insane person for a TV,where the insane person,or his legal representative,can prove that he was insane at the time of the contract but cannot prove anything else about the incident 
B) A contract with an insane person for necessaries such as food and shelter 
C) A contract containing an exculpatory clause limiting the liability of one of the parties 
D) Any contract with a status Indian 
E) A contract to sell a bag of cocaine

Question 7

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?

Accepted Answer

A) If the 50 kilometres is determined to be reasonable,this restriction will be valid and Harry Cutter will succeed. 
B) Any such attempt to restrict competition is illegal and,no matter how reasonable the terms are,the provision will be void. 
C) The time period of the restrictive covenant is too broad and would be found to be void or non-enforceable. 
D) The whole contract for the sale of the business is void because of the illegal term,and therefore Harry will be able to force Jones to take his barber shop back and return the purchase price. 
E) These terms are enforceable no matter how unreasonable because they are part of the bargain struck. 
A) If the 50 kilometres is determined to be reasonable,this restriction will be valid and Harry Cutter will succeed. 
B) Any such attempt to restrict competition is illegal and,no matter how reasonable the terms are,the provision will be void. 
C) The time period of the restrictive covenant is too broad and would be found to be void or non-enforceable. 
D) The whole contract for the sale of the business is void because of the illegal term,and therefore Harry will be able to force Jones to take his barber shop back and return the purchase price. 
E) These terms are enforceable no matter how unreasonable because they are part of the bargain struck.

Question 8

Why was the Statute of Frauds originally passed?

Accepted Answer

It was pas

Question 9

Zlotnik incorporated a company shortly after graduation.The company bought a truck and a computer.The company was short of operating capital so,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 security agreement on its truck and computer.The company made its payment each month without incident.Then 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.On these facts,which of the following is true?

Accepted Answer

A) Because Zlotnik's promise is a guarantee and not an indemnity,he automatically becomes the legal person primarily liable on the debt; the company becomes secondarily liable. 
B) Zlotnik's promise to guarantee the debt is unenforceable because it is not supported by any consideration flowing from the bank to Zlotnik. 
C) Zlotnik's promise to guarantee the debt is ultra vires. 
D) Zlotnik's promise to guarantee the debt is enforceable wholly on the grounds that the Statute of Frauds with its writing requirement has been repealed. 
E) All guarantees and indemnities must be in writing and under seal to be binding. 
A) Because Zlotnik's promise is a guarantee and not an indemnity,he automatically becomes the legal person primarily liable on the debt; the company becomes secondarily liable. 
B) Zlotnik's promise to guarantee the debt is unenforceable because it is not supported by any consideration flowing from the bank to Zlotnik. 
C) Zlotnik's promise to guarantee the debt is ultra vires. 
D) Zlotnik's promise to guarantee the debt is enforceable wholly on the grounds that the Statute of Frauds with its writing requirement has been repealed. 
E) All guarantees and indemnities must be in writing and under seal to be binding.

Question 10

The distinction between a guarantee and a(n)________ is important,because in most provinces the Statute of Frauds requires that only a guarantee be in writing.

Accepted Answer

A) obligation 
B) agreement 
C) promise 
D) indemnity 
E) interest 
A) obligation 
B) agreement 
C) promise 
D) indemnity 
E) interest

Question 11

In most jurisdictions,if the court classifies the nature of a third-party agreement as a guarantee,there is no requirement of writing.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Negotiations between Dave and Mary resulted in the following agreement: Dave would sell his property to Mary for the sum of $150,000 with the closing date to be August 10.When the two completed their discussion,Mary paid Dave $5000 as part payment of the purchase price and received a receipt.The contract was not in writing.On August 10,Mary tendered the remainder of the money,but Dave refused to convey the property.Mary sued Dave for breach of contract.On these facts,which of the following is true? (Assume all facts can be proved.)

Accepted Answer

A) Mary cannot enforce this contract because the contract was not in writing. 
B) Mary cannot enforce this contract because the contract was not evidenced in writing. 
C) Mary can enforce this contract if the receipt specified the part payment was for the property in question. 
D) Mary cannot enforce the agreement because all of the consideration was not paid. 
E) Mary cannot enforce the agreement because she had not paid Dave all of the money. 
A) Mary cannot enforce this contract because the contract was not in writing. 
B) Mary cannot enforce this contract because the contract was not evidenced in writing. 
C) Mary can enforce this contract if the receipt specified the part payment was for the property in question. 
D) Mary cannot enforce the agreement because all of the consideration was not paid. 
E) Mary cannot enforce the agreement because she had not paid Dave all of the money.

Question 14

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

Accepted Answer

(Answers will depend on the jurisdiction

Question 15

All commercial contracts must be evidenced by writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 16

All contracts must be written to be binding.

Accepted Answer

A) True 
 B)False

Question 17

The creation of a joint tenancy in land must be evidenced in writing.

Accepted Answer

A) True 
 B)False

Question 18

When John bought a car from his father's old classmate,Joe,he was only seventeen years old.The price of the car was $5000.He paid $1000 down and was to pay the remaining $4000 over time.With these facts in mind,which of the following statements is true? (Read each statement separately.)

Accepted Answer

A) Even if the car is defective,John could not sue Joe. 
B) If John has an accident and refuses to pay the balance,Joe could successfully sue John for breach of contract. 
C) If John has an accident because of his negligent driving and he refuses to pay,Joe could successfully sue him in negligence to get around any difficulty in suing him in contract. 
D) If the car is defective,John could sue Joe for breach even though Joe could not sue him. 
E) If Joe didn't realize John was only 17 years old,he can enforce the contract against him no matter what his age. 
A) Even if the car is defective,John could not sue Joe. 
B) If John has an accident and refuses to pay the balance,Joe could successfully sue John for breach of contract. 
C) If John has an accident because of his negligent driving and he refuses to pay,Joe could successfully sue him in negligence to get around any difficulty in suing him in contract. 
D) If the car is defective,John could sue Joe for breach even though Joe could not sue him. 
E) If Joe didn't realize John was only 17 years old,he can enforce the contract against him no matter what his age.

Question 19

When a third party says,"I'll see that you get paid," there is an assumption of a primary obligation,and the promise is a(n)

Accepted Answer

A) indemnity. 
B) guarantee. 
C) contract. 
D) obligation. 
E) interest. 
A) indemnity. 
B) guarantee. 
C) contract. 
D) obligation. 
E) interest.

Question 20

Contracts may be in writing,they may be under seal,or they may simply be verbal,but they may not be implied from the conduct of the parties.

Accepted Answer

A) True 
 B)False

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

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

Contracts may be in writing,under seal,verbal,or even implied.

"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.

Which of the following contracts is void?

Why was the Statute of Frauds originally passed?

The distinction between a guarantee and a(n)________ is important,because in most provinces the Statute of Frauds requires that only a guarantee be in writing.

In most jurisdictions,if the court classifies the nature of a third-party agreement as a guarantee,there is no requirement of writing.

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

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

All commercial contracts must be evidenced by writing to be enforceable.

All contracts must be written to be binding.

The creation of a joint tenancy in land must be evidenced in writing.

When John bought a car from his father's old classmate,Joe,he was only seventeen years old.The price of the car was $5000.He paid $1000 down and was to pay the remaining $4000 over time.With these facts in mind,which of the following statements is true? (Read each statement separately.)

When a third party says,"I'll see that you get paid," there is an assumption of a primary obligation,and the promise is a(n)

Contracts may be in writing,they may be under seal,or they may simply be verbal,but they may not be implied from the conduct of the parties.

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

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

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

Contracts may be in writing,under seal,verbal,or even implied.

"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.

Which of the following contracts is void?

Why was the Statute of Frauds originally passed?

The distinction between a guarantee and a(n)________ is important,because in most provinces the Statute of Frauds requires that only a guarantee be in writing.

In most jurisdictions,if the court classifies the nature of a third-party agreement as a guarantee,there is no requirement of writing.

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

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

All commercial contracts must be evidenced by writing to be enforceable.

All contracts must be written to be binding.

The creation of a joint tenancy in land must be evidenced in writing.

When John bought a car from his father's old classmate,Joe,he was only seventeen years old.The price of the car was $5000.He paid $1000 down and was to pay the remaining $4000 over time.With these facts in mind,which of the following statements is true? (Read each statement separately.)

When a third party says,"I'll see that you get paid," there is an assumption of a primary obligation,and the promise is a(n)

Contracts may be in writing,they may be under seal,or they may simply be verbal,but they may not be implied from the conduct of the parties.

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