Question 1

Which of the following is incorrect with respect to the law of incapacity?

Accepted Answer

A)  Married women are no longer incapacitated. 
B)  Some Crown corporations have limited capacity to contract. 
C)  To escape a contract on the basis of insanity, the insane person need only show that he did not know what he was doing at the time the contract was formed. 
D)  Trade unions may have limited capacity to contract. 
E)  Even after the passage of the Charter of Rights and Freedoms, some contracts entered into with status Indians cannot be enforced. 
A)  Married women are no longer incapacitated. 
B)  Some Crown corporations have limited capacity to contract. 
C)  To escape a contract on the basis of insanity, the insane person need only show that he did not know what he was doing at the time the contract was formed. 
D)  Trade unions may have limited capacity to contract. 
E)  Even after the passage of the Charter of Rights and Freedoms, some contracts entered into with status Indians cannot be enforced.

Question 2

What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?

Accepted Answer

It is stil

Question 3

"A verbal contract is every bit as binding as a written one." Discuss the validity of that statement.

Accepted Answer

The Statute of Frauds requires

Question 4

Given the provisions of the Statute of Frauds, which of the following contracts should be evidenced in writing?

Accepted Answer

A)  A sale of goods involving $4 
B)  An employment contract 
C)  A retainer with a lawyer 
D)  A sale of land 
E)  Domestic agreements 
A)  A sale of goods involving $4 
B)  An employment contract 
C)  A retainer with a lawyer 
D)  A sale of land 
E)  Domestic agreements

Question 5

Corporate bodies created by special legislation invariably lack capacity to enter into binding agreements.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Contracts with minors are void, except beneficial contracts of service. 
B)  All contracts with minors are void. 
C)  Contracts with minors are unenforceable by the infant against the adult and by the adult against the infant. 
D)  An infant can enforce a contract made by an adult with him despite that fact that he is a minor. 
E)  An adult cannot sue the infant on the contract even if the infant affirms the contract after reaching the age of majority. 
A)  Contracts with minors are void, except beneficial contracts of service. 
B)  All contracts with minors are void. 
C)  Contracts with minors are unenforceable by the infant against the adult and by the adult against the infant. 
D)  An infant can enforce a contract made by an adult with him despite that fact that he is a minor. 
E)  An adult cannot sue the infant on the contract even if the infant affirms the contract after reaching the age of majority.

Question 8

Contracts to commit a crime or a tort are void.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following are in no way incapacitated when entering into contracts?

Accepted Answer

A)  Mentally disabled 
B)  Children 
C)  Women 
D)  Status Indians 
E)  Trade unions 
A)  Mentally disabled 
B)  Children 
C)  Women 
D)  Status Indians 
E)  Trade unions

Question 10

How is a person of weakened intellect or who is otherwise vulnerable (but not insane or mentally incompetent) protected in terms of contract law?

Accepted Answer

The legal principle

Question 11

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?

Accepted Answer

A)  In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract. 
B)  If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract. 
C)  The court always just presumes an intention to be legally bound, so this is never an issue in a contract case. 
D)  Family members can never have the intent to be legally bound in their agreements because family matters are private matters. 
E)  The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption. 
A)  In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract. 
B)  If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract. 
C)  The court always just presumes an intention to be legally bound, so this is never an issue in a contract case. 
D)  Family members can never have the intent to be legally bound in their agreements because family matters are private matters. 
E)  The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption.

Question 12

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?

Accepted Answer

They use t

Question 13

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

Accepted Answer

A)  Infants 
B)  Insane or intoxicated persons 
C)  Status Indians 
D)  Bankrupts 
E)  Married women 
A)  Infants 
B)  Insane or intoxicated persons 
C)  Status Indians 
D)  Bankrupts 
E)  Married women

Question 14

Explain how an insurance contract avoids being void as a wager.

Accepted Answer

The insured must have an insur

Question 15

Joe was in a bar and saw his friend Sam. Sam had a considerable amount to drink. Sam offered to sell Joe his Porsche automobile for only $15,000. Joe made sure to have Sam sign a written agreement to that effect. The next day, Joe went to pick up the car, but Sam didn't remember anything about it. Even when Joe showed him the written agreement signed by him, Sam refused to deliver the car. Joe sued. Which of the following correctly states the legal position of the parties?

Accepted Answer

A)  Sam just has to show he was legally intoxicated, and he will not be bound. 
B)  If Joe can show that there was no indication that Sam was drunk, even though Sam was completely incapacitated, he will be required to go through with the deal. 
C)  Sam will not have to go through with the deal because no money has yet changed hands. 
D)  As long as Joe can produce the agreement in writing, there is nothing Sam can do to get out of the deal. Once Sam has signed the document, he is responsible for its contents. 
E)  Being drunk is no excuse; the contract is binding. 
A)  Sam just has to show he was legally intoxicated, and he will not be bound. 
B)  If Joe can show that there was no indication that Sam was drunk, even though Sam was completely incapacitated, he will be required to go through with the deal. 
C)  Sam will not have to go through with the deal because no money has yet changed hands. 
D)  As long as Joe can produce the agreement in writing, there is nothing Sam can do to get out of the deal. Once Sam has signed the document, he is responsible for its contents. 
E)  Being drunk is no excuse; the contract is binding.

Question 16

Explain the legal position of an infant who enters into a contract with an adult.

Accepted Answer

Varies with the province. In most provin

Question 17

A husband started a small business and agreed to pay his wife $700 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.

Accepted Answer

Probably the best defence here is that t

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  A parent is responsible for the obligations of her children in both tort and contract law. 
B)  As a general rule, parents are not responsible for the torts of their children. 
C)  As a general rule, parents are not responsible for the contracts of their children. 
D)  A parent is responsible for the debt of his child if that parent has guaranteed the loan. 
E)  A parent can be liable for a tort committed by her child if it can be shown that the parent was negligent as well. 
A)  A parent is responsible for the obligations of her children in both tort and contract law. 
B)  As a general rule, parents are not responsible for the torts of their children. 
C)  As a general rule, parents are not responsible for the contracts of their children. 
D)  A parent is responsible for the debt of his child if that parent has guaranteed the loan. 
E)  A parent can be liable for a tort committed by her child if it can be shown that the parent was negligent as well.

Question 20

"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

Which of the following is incorrect with respect to the law of incapacity?

What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?

"A verbal contract is every bit as binding as a written one." Discuss the validity of that statement.

Given the provisions of the Statute of Frauds, which of the following contracts should be evidenced in writing?

Corporate bodies created by special legislation invariably lack capacity to enter into binding agreements. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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

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

Contracts to commit a crime or a tort are void.

Which of the following are in no way incapacitated when entering into contracts?

How is a person of weakened intellect or who is otherwise vulnerable (but not insane or mentally incompetent) protected in terms of contract law?

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?

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?

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

Explain how an insurance contract avoids being void as a wager.

Explain the legal position of an infant who enters into a contract with an adult.

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

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

"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.

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

Priority of Creditors

Filters

Exam 7: Formation of Contracts Continued

Which of the following is incorrect with respect to the law of incapacity?

What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?

"A verbal contract is every bit as binding as a written one." Discuss the validity of that statement.

Given the provisions of the Statute of Frauds, which of the following contracts should be evidenced in writing?

Corporate bodies created by special legislation invariably lack capacity to enter into binding agreements. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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

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

Contracts to commit a crime or a tort are void.

Which of the following are in no way incapacitated when entering into contracts?

How is a person of weakened intellect or who is otherwise vulnerable (but not insane or mentally incompetent) protected in terms of contract law?

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?

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?

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

Explain how an insurance contract avoids being void as a wager.

Explain the legal position of an infant who enters into a contract with an adult.

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

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

"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.

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

Priority of Creditors

Filters