Exam 7: Formation of Contracts Continued

Indicate the distinction between a guarantee and an indemnity.

When at war, what happens to contracts with residents of an enemy country if they are not detrimental to Canada?

Explain what is meant by "necessary."

"Contracts must be in writing to be enforceable." Discuss the accuracy of that statement. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Sam agreed to sell his house to Joe for $200,000, and although the agreement was not in writing, Joe gave Sam $25,000 as a deposit. Sam gave Joe a receipt for the $25,000, indicating that it had been received but not stating for what purpose. In the absence of any other writing, is this contract enforceable? Explain.

A provision in a contract for the sale and purchase of a business read as follows: "The vendor (Jones) shall not, directly or indirectly, in any capacity whatsoever, carry on a similar business in any location for one year." Six months later, Kates found that Jones was competing directly by opening up a similar business, contrary to the contract drafted by Kates. Kates sued Jones for breach of contract, namely, breach of the restrictive covenant. Which of the following best describes the legal position of the parties?

Mr. Buyer, the plaintiff in the action, was attempting to enforce a contract in which the defendant, Mr. Seller agreed to sell to buyer his property, Blackacre, for $100,000. Which of the following, by itself, would be sufficient to allow Mr. Seller to get out of the contract?

In his last year of high school, Larry, a minor, saw a friend's computer and felt that the word-processing function would help him get through high school. He visited Computer Heaven Ltd. and contracted for an Apple Macintosh, printer, paper, and the program. The total cost was $4,000. He paid $1,800 down and promised to pay another $300 next July 3, his birthday, the remainder to be paid in monthly installments of $100. Larry made the July 3 payment and some of the monthly payments, but by then had graduated, thanks to his passing mark in English, and didn't have a use for the computer anymore. Furthermore, he wanted to save his money for a down payment on a compact disc player and speakers. When he quit making payments to Computer Heaven, the balance outstanding was $1,700. On these facts, which of the following is true?

Which of the following contracts is void?

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

Discuss, providing examples, situations in which an agreement would be invalid due to a lack of intention, including any presumptions that arise.

Negotiations between Dave and Mary resulted in the following agreement: Dave would sell his property to Mary for the sum of $150,000, closing date to be August 10, 2011. When the two completed their discussion, Mary paid Dave $5,000 as part payment of the purchase price and received a receipt. The contract was not in writing. On August 10, Mary tendered the remainder of the money, but Dave refused to convey the property. Mary sued Dave for breach of contract. On these facts which of the following is true? (Assume all facts can be proved.)

Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.

Ted, a seventeen-year-old high school student, was hired to perform in four episodes of Gossip Girls. To keep up with his schoolwork, he contracted with Mr. Tech, of Technoland, for a $2,000 laptop computer. He agreed to pay $500 down and the balance by monthly payments of $250. Read each of the following separately and indicate which is true.

Requirements of a contract include capacity of the parties to contract, legality, and intention of the parties to be legally bound. Which of the following is false with regard to these elements?

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

Distinguish between an infant's liability for torts and for contracts.

Discuss agreements that restrict competition or that are a restraint of trade and how they are treated in contract law.

All commercial contracts must be evidenced by writing to be enforceable.

An adult can't sue an infant in tort to get around the infant's contractual incapacity.