Exam 9: The Requirements of Form and Writing

Wade, an Ontario resident, ordered a customized motorbike on February 1^st with delivery on June 1^st. On his 18^th birthday, on May 1^st, Wade decided that he wanted a windsurfer instead, so he called the motorbike company the next morning and cancelled the contract. The payments would have been made on a 24-month basis.

Ross's family lives in Ontario. His parents gave him a credit card in his own name for his 14^th birthday. For the past 20 months they have always paid the bills for charges made on the card. Last night, Ross's father told him that they were tired of his extravagance and that from now on, he will have to pay any charges himself, including the one which triggered Ross's father's statement. This bill is for $1,200 for a Florida spring break holiday from which Ross has just returned.

In May, Joey, a 17-year-old from, Charlottetown, P.E.I., enters into a contract to factory order a car. He gives the dealer a $2,000 deposit. The car will be delivered in September. Joey reached the age of majority in July. In August he called the dealer to see if the car was still scheduled for delivery in September and assured him that he would be ready to take delivery at the Charlottetown, P.E. I. dealership. Is he bound by the contract and required to take delivery of the car in September?

X sold his retail clothing business to Y. The business was located in a small town, and most of the customers lived within a radius of eight kilometres of the clothing shop. As a part of the sale agreement, X agreed not to set up a similar business in competition with Y for a period of five years or within a radius of eight kilometres of the shop. The agreement which restricts X's right to set up a business in competition with Y will only be enforceable if it is reasonable and necessary.

Eric, a 14-year-old, was an excellent painter. His teacher, Mr. Ryan, commissioned him to paint a picture of the city skyline and gave him a $50 deposit. Eric did not complete the painting. What is the position of Eric and Mr. Ryan?

Drew, a five-year-old boy, saved his allowance to buy his mother a present for her birthday. After a talk with his father, Drew discovered that the present was on sale and he would not have to use all of his allowance. When Drew returned home, his father learned that he had been charged the full price for the gift. When his father confronted the store owner, he refused to refund the sale. At the father's request pursuant to the contractual Right of Repudiation, the store owner must refund the sale, thus voiding the contract.

In May, Joey, a 17-year-old, enters into a contract to factory order a car. He gives the dealer a $2,000 deposit. The car will be delivered in September. Joey reached the age of majority in July. He took no action. Is he bound by the contract and required to take delivery of the car in September?

War has just been declared between Canada and the U.S.A. Ellen Lewis, a Canadian resident with American citizenship, has been carrying on her cosmetics manufacturing and direct sales business only in Canada for about 10 years. She has a contract with Basic Chemicals, a Canadian company, for the supplies she needs to make her cosmetics. i. Ms. Lewis is classified as an enemy alien because of her citizenship. ii. The contract made between Ms. Lewis and Basic is void and illegal from the moment war is declared. iii. Ms. Lewis is not an enemy alien. iv. The Crown may grant Ms. Lewis the right to continue her business if it is in the public interest. v. The contract between Ms. Lewis and Basic is not affected by the outbreak of war.

Mr. Martin, who has been declared bankrupt, decided to rent an apartment for $600 per month, since his house is to be sold to satisfy his creditors. He cannot enter into such a contract, since he lacks the capacity to contract except for necessaries.

Mariah, a young woman aged 17, went shopping. She purchased a new coat on credit at a clothing store. Later the same day, she took her expensive watch to a jewellery shop to have a new watch band installed. While in the shop, she purchased on credit an additional watch for herself, and a silver bracelet as a gift for a friend. When the merchants later requested payment, Mabel refused to pay. Minors are not liable for non-necessary purchases, and Mariah would only be required to return a non-necessary coat to avoid the contract.

While in the manic-depressive stage of mental illness, Alec ordered 20,000 paper bags, believing that he could sell them to small supermarkets as an ecologically sound marketing device. His doctor then placed him back on his medication, and he was upset to realize what he had done. Trying to make the best of a bad job, he contacted a number of small supermarkets, but they were not interested. Recalling his business school law course, he called the paper bag supplier and cancelled the contract on the grounds that he lacked capacity when he made it.

Janine, a dental student, does some dental work for a friend even though she is not yet licensed. Since the work, though not negligent, did not achieve the promised results, Janine's friend can sue her for breach of their contract.

Margaret operates a large business based in a Central American country, which sells automobile tires. Margaret moved to Central America from Canada to start her venture, but has retained her Canadian citizenship. After five years of successful sales, her Canadian supplier ceased sending her tires. She contacted the supplier to find out its reason for discontinuing the sales. The company replied that because Canada was party to a U.N. sanctioned trade embargo against this country she had been deemed an enemy alien by the government of Canada. The supplier company had, on that basis, decided to break the supply contract. Margaret was desperate to maintain supplies and threatened legal action for the broken contract. Would she be successful?

Dale, while in a drunken state, purchased a large sailboat from Sonja. Dale may avoid the contract with Sonja, if, on his return to a sober state, he promptly repudiates the contract, and can prove that Sonja was aware that he, Dale, was intoxicated at the time the contract was made.

Samuel, who has been declared bankrupt, decided to rent an apartment for $800 per month, since his house is to be sold to satisfy his creditors. Assuming this is a contract for necessaries, Samuel must tell the landlord that he is a bankrupt or he cannot make the contract.

An agreement with a public official, whereby the official would use his or her position to obtain a benefit for the other party in return for payment, is both legal and enforceable.

Mariah, a young woman aged 17, went shopping. She purchased a new coat on credit at a clothing store. Later the same day, she took her expensive watch to a jewellery shop to have a new watch band installed. While in the shop, she purchased on credit an additional watch for herself, and a silver bracelet as a gift for a friend. When the merchants later requested payment, Mabel refused to pay. The merchant was entitled to a return of the goods sold when Mariah repudiated the agreement to purchase the watch and silver bracelet.

When Peter is 16, he enters into an agency agreement whereby he rents commercial property in exchange for a commission valued at 2% of the lease. When he turned 18 (the age of majority) he took no action. Does the contract continue?

On leave from the navy, Bart and his buddies ventured into town for a night of partying. After a good many drinks a friend suggested they all get tattoos. When Bart's turn came he, in his inebriated state, chose a large tattoo to cover his entire forearm. When they were done the sailors returned to their ship. When Bart woke the next morning his tattoo was there, large as life, on his arm. Bart, after a discussion with a friend decided to contact his lawyer to see what he could do about this tattoo.

Dale, while in a drunken state, purchased a large sailboat from Sonja. If Sonja was unaware that Dale was intoxicated at the time that the contract was made, Dale would not be permitted to avoid the contract.