Exam 10: The Requirements of Form,writing and Privacy

Painter and Hawe discussed the possibility of Hawe entering the employ of Painter as the general manager of Painter's firm.A written contract was prepared and signed by the parties on December 1^st,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2^nd,1990.On December 28^th,1989,Painter notified Hawe that he was cancelling the contract.Hawe sued Painter immediately.The Statute of Frauds requires the contract to be in writing,and signed,to be enforceable by Hawe against Painter.

Painter and Hawe discussed the possibility of Hawe entering the employ of Painter as the general manager of Painter's firm.A written contract was prepared and signed by the parties on December 1^st,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2^nd,1990.On December 28^th,1989,Painter notified Hawe that he was cancelling the contract.Hawe sued Painter immediately.The Statute of Frauds would render the contract illegal if it was not in writing and signed.

Painter and Hawe discussed the possibility of Hawe entering the employ of Painter as the general manager of Painter's firm.A written contract was prepared and signed by the parties on December 1^st,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2^nd,1990.On December 28^th,1989,Painter notified Hawe that he was cancelling the contract.Hawe sued Painter immediately.Hawe may sue Painter for breach of the contract.

Mr.Guimond was teaching his son,Jacques,to drive in the family car when Jacques failed to apply his brakes soon enough and hit the car in front,causing considerable damage.Mr.Bouchard,the driver of the other car,should get Mr.Guimond's promise to pay for his repairs in writing or it will be unenforceable.

In the presence of several witnesses,A verbally agreed to purchase B's farm for $175,000.The next day,B changed his mind,and refused to sell the farm to A.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,A sued B for breach of contract and for a decree of specific performance to compel B to sell him the farm.The verbal agreement is unenforceable.

X wished to purchase a motor vehicle from Y on credit,but X was unemployed,and Y was hesitant to sell to him for that reason.Z,who was quite wealthy,said to Y: "Sell X the automobile on credit,and if X does not pay you,I will." The contract of guarantee is subject to the Statute of Frauds.

Greentree Financing Ltd.enters into an agreement to lend $25,000 to Mai for the purchase of a car.The loan is guaranteed by her father,Mao.At a minimum,what must be in writing to constitute a written agreement in accordance with the Statute of Frauds?

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.The verbal agreement is unenforceable.

In the presence of several witnesses,A verbally agreed to purchase B's farm for $175,000.The next day,B changed his mind,and refused to sell the farm to A.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,A sued B for breach of contract and for a decree of specific performance to compel B to sell him the farm.The verbal agreement is valid and enforceable if the witnesses testify in court that an agreement of purchase and sale was made.

Sandra offered to purchase Jean's car for $3,500,and Jean accepted this offer.This contract was reduced to writing and signed by the parties,when Sandra discovered that Jean was searching for an evening gown to wear to a social affair some months in the future.Sandra offered then to make a dress for Jean,if Jean would accept $3,200 for the car.Jean agreed to the modification and in return for Sandra's cheque in the amount of $3,200 gave her the keys to her car.Sandra finished the dress in time for the social event; however Jean was not pleased with the final result,and declaring it worthless to her,returned the dress to Sandra and brought an action on the face of the written contract for the $300 balance outstanding.Discuss the legal issues raised in this fact situation,its likely resolution,and treat explicitly how Sandra may counter in procedural terms with a defence against the document for $3,500,which is clear on its face and bears her signature.D.L.R.985.

Pashi promises,in an unsigned note,to give Neve,her daughter-in-law-to-be,the family jewellery and some share certificates worth $100,000 on the day she marries Pashi's son.If she does not do so,Neve can enforce the agreement since it is evidenced in writing and she,by marrying,gave Pashi consideration for her promise.

X wished to purchase a motor vehicle from Y on credit,but X was unemployed,and Y was hesitant to sell to him for that reason.Z,who was quite wealthy,said to Y: "Sell X the automobile on credit,and if X does not pay you,I will." Z's promise would be unenforceable,unless it was made in writing and signed by Z.

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.The gallery can successfully answer all of Ravi's case by raising the parol evidence rule.

To comply with either the Statute of Frauds or most statutory writing requirements,evidence of the contract in writing needs to be embodied in a formal document.

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.Ravi may successfully plead that his words were agreement in principle only.

The effect of the Statute of Frauds (or any other statutory provision in provinces that have repealed it)is that none of the following may be brought in a court of law unless they are in writing and signed by the party to be charged:

Greentree Financing Ltd.enters into an agreement to lend $25,000 to Mai for the purchase of a car.The loan is guaranteed by her father,Mao.What agreements have to be in writing to be enforceable?

In the presence of several witnesses,A verbally agreed to purchase B's farm for $175,000.The next day,B changed his mind,and refused to sell the farm to A.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,A sued B for breach of contract and for a decree of specific performance to compel B to sell him the farm.Assuming the verbal agreement is unenforceable,the contract would still exist.

David wants to sell one of his properties,but will be out of the country for an extended period.He decides to ask his brother John to purchase the property on his behalf.For John to be able to legally enter into a purchase agreement on behalf of his brother David,the following should take place:

In the presence of several witnesses,A verbally agreed to purchase B's farm for $175,000.The next day,B changed his mind,and refused to sell the farm to A.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,A sued B for breach of contract and for a decree of specific performance to compel B to sell him the farm.If A had given B $10 in cash as a deposit the agreement would be enforceable.