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

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?

If a third party incurs a secondary liability for a debt,he has given a(n)

Which one of the following correctly indicates the position of the parties in respect to contracts involving minors?

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

Provide an example of something that would constitute acceptable part performance when land has been sold.

Which one of the following is required to be evidenced in writing under the Statute of Frauds or its equivalent?

Which of the following is incorrect with respect to the law of infants and their parents?

A husband started a small business and agreed to pay his wife $1700 a month for her bookkeeping services.This was primarily a method of income-splitting for tax purposes.Unfortunately,the business was not as successful as they had imagined,and the husband couldn't afford to pay his wife that much money from the business.The marriage went sour,and after separation,the wife brought an action against the husband demanding back pay for the last 11 months,as well as compensation for loss of future earnings.Explain what defence the husband could best raise in these circumstances.

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?

Indicate 4 categories of persons that have their capacity to enter into contracts limited to some extent.

If a contract is not evidenced in writing this does not make it void,only unenforceable.

Corporate bodies created by special legislation invariably lack capacity to enter into binding agreements.

When the terms of an agreement make it impossible to perform the contract within one full year from the time the contract is entered into,there must be evidence in writing for it to be enforceable.

How do the courts determine whether it is reasonable for the parties trying to enforce the agreement to think that a legally binding contract has been created?

A contract that has been partially performed will be enforceable even though it is not in writing as required under the Statute of Frauds.

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?

A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his incapacity.

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

Randy,as his two older brothers before him,moved out of the house when he was quite young.When he was 17,he and his older brother,Ted,wanted to buy a condominium in Nelson.They both had jobs and the bank was willing to lend them money and take a mortgage on the condo.Which of the following is a correct statement about the law governing this situation?

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid and it is merely unenforceable by the courts.