Exam 7: Formation of Contracts Continued

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.

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(Multiple Choice)

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Question 1

Correct Answer:

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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, 2012, 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 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?

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Question 2

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Describe how infants are treated in contract law in Canada.

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(Essay)

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Question 3

Correct Answer:

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This is a relatively easy question but does require students to show an understanding of this aspect of contract law. They should indicate who is an infant and how this varies from jurisdiction to jurisdiction. They should show that, in most jurisdictions, infants' contracts are voidable except for necessities and beneficial contracts of service. They should explain what those items are as well. Because the question requires them to deal with Canada, the student should show how infants' contracts are treated differently in B.C.; that is, all contracts including necessities and beneficial contracts of service are unenforceable there. They should show an understanding of the difference between voidable and unenforceable. Somewhere in their answer they should also make it clear that it is only the infant that is benefited. The adults are bound and the infant can enforce the contract.

Parents are responsible for their children's actions in which one of the following situations?

(Multiple Choice)

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Question 4

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

(Multiple Choice)

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Question 5

Why was the Statute of Frauds originally passed?

(Short Answer)

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Question 6

(Modify this question for your jurisdiction.) Bill, a college graduate, rented office space under a two-year lease. He needed the space because he contracted with the provincial government to create a program to integrate the various inventories of different government agencies. Bill hired Janet and Fred as full-time programmers for one year. He bought three desks for cash. He bought a $2,000 laser printer, for which his dad signed as a guarantor. He bought another computer from a different seller under a conditional sales contract. Which of these contracts should be evidenced in writing to be enforceable?

(Multiple Choice)

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Question 7

Joe advertised his house for sale, and Sam came to have a look at it. While there, they haggled and struck a bargain that Sam would purchase the house for $200,000. They shook hands on the deal and Sam went home. That night, while thinking about it, he realized that it wasn't exactly what he wanted, and so the next day he wrote a letter to Joe stating, "I'm writing this note to let you know that I've changed my mind with respect to the purchase of your home for $200,000, and since the contract isn't valid in any case, I don't expect to hear any more of the matter. Sincerely, Sam." Joe sued Sam for breach of contract. Discuss the legal position of the parties, including any defences available to Sam.

(Essay)

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Question 8

In the classic case of Carlill v. Carbolic Smoke Ball Company, the defendants manufactured a product they claimed would protect against influenza. The company advertised that it would pay a specific sum of money to anyone who contracted influenza while using their product, and put money on deposit to demonstrate their sincerity. When Mrs. Carlill claimed the money, the company argued that these statements were not intended to be taken seriously. What did the Court decide?

(Multiple Choice)

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Question 9

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.)

(Multiple Choice)

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Question 10

Which of the following contracts is void?

(Multiple Choice)

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Question 11

Clem had wanted a piano for a long time. Although he was a minor, his mom gave him $300 and he took this with some savings and made a $500 down payment on a $3,000 piano. The balance was to be paid over a three-year period. His mom signed the contract as a guarantor. Clem made the first three payments, but he damaged the piano trying to move it from the living room to his upstairs bedroom. He didn't have the money to get it fixed. He quit playing, lost interest, and quit making his payments. On these facts, which of the following is false?

(Multiple Choice)

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Question 12

All contracts to restrict competition are void.

(True/False)

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Question 13

Which one of the following is an example of a contract that is binding on an infant in British Columbia?

(Multiple Choice)

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Question 14

Discuss the Statute of Frauds as it relates to contract law. In your answer, consider the justification of requiring some contracts to be evidenced in writing, and also how and why the Statute of Frauds has been modified or repealed in several jurisdictions.

(Essay)

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Question 15

One afternoon while Mr. Reston was going home on the bus, his neighbour, Mr. Outovit, offered to sell Reston his car for $4,000, a bit below the market value. Reston said, "You might change your mind on that. Better not be too hasty with your offers." Outovit answered, "I want to sell it quickly," and wrote on the back of an envelope, "I hereby offer my neighbour, Reston, my 2011 Chevrolet for $4,000 cash." He signed his name. Reston wrote, "I accept." The next day, Reston went to his neighbour's house to pay the money and get the car. He learned that Outovit was in hospital suffering from a reaction to medicines given him the day before. If Outovit (or his legal representative) refuses to honour the contract on the basis of mental incapacity, which of the following is true?

(Multiple Choice)

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Question 16

Contracts involving domestic relationships are presumed to be binding.

(True/False)

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Question 17

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?

(Multiple Choice)

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Question 18

A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract. Which of the following is incorrect with respect to the law of incapacity?

(Multiple Choice)

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Question 19

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

(Essay)

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Question 20

Showing 1 - 20 of 150

Describe how infants are treated in contract law in Canada.

Parents are responsible for their children's actions in which one of the following situations?

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

Why was the Statute of Frauds originally passed?

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.)

Which of the following contracts is void?

All contracts to restrict competition are void.

Which one of the following is an example of a contract that is binding on an infant in British Columbia?

Discuss the Statute of Frauds as it relates to contract law. In your answer, consider the justification of requiring some contracts to be evidenced in writing, and also how and why the Statute of Frauds has been modified or repealed in several jurisdictions.

Contracts involving domestic relationships are presumed to be binding.

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 requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract. Which of the following is incorrect with respect to the law of incapacity?

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

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