Question 1

Indicate what types of contracts are binding on infants.

Accepted Answer

Necessaries and beneficial con

Question 2

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

Accepted Answer

Some evidence consistent with

Question 3

How do the courts determine whether a customer should have taken an exaggerated claim seriously?

Accepted Answer

They use t

Question 4

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

Accepted Answer

The answer of What is the term for a primary...

Question 5

In Transport North American Express Inc. v. New Solutions Financial Corp., various payments were found to be "interest" within the meaning of s. 347 of the Criminal Code. The interest rate applied was illegal. The Supreme Court applied "notional severance", resulting in a reduction of the interest rate. The Supreme Court of Canada outlined four factors to consider when deciding whether to declare an illegal contract void, or to partially enforce it. Which of the following is not one of those factors?

Accepted Answer

A)  whether the contract was a standard form agreement 
B)  whether the purpose or policy of s. 347 would be subverted by severance 
C)  whether the debtor would be given an unjustified windfall 
D)  the relative bargaining positions of the parties and their conduct in reaching the agreement 
E)  whether the parties entered into the agreement for an illegal purpose or with an illegal intention 
A)  whether the contract was a standard form agreement 
B)  whether the purpose or policy of s. 347 would be subverted by severance 
C)  whether the debtor would be given an unjustified windfall 
D)  the relative bargaining positions of the parties and their conduct in reaching the agreement 
E)  whether the parties entered into the agreement for an illegal purpose or with an illegal intention

Question 6

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid; it is merely unenforceable by the courts.

Accepted Answer

A) True 
 B)False

Question 7

From the perspective of contract law, why might the distinction between a guarantee and an indemnity be important?

Accepted Answer

Because in most provinces, the

Question 8

Discuss the importance of putting contracts in writing, both from a legal perspective and from a practical business business point of view.

Accepted Answer

Here students should outline the instanc

Question 9

Whenever an adult enters into a contract with an infant, the adult is bound.

Accepted Answer

A) True 
 B)False

Question 10

In which of the following situations would the contract relating to land not be enforceable?

Accepted Answer

A)  An unwritten lease of a lawn mower used to maintain the land. 
B)  An unwritten agreement to have a garage built on the land. 
C)  An unwritten lease for a term of five years. 
D)  An unwritten sale of land but where the sale was acknowledged in subsequent correspondence, signed by the party denying the existence of the sale. 
E)  An unwritten sale of land where the seller allowed the buyer to to enter of the property and commence construction thereon. 
A)  An unwritten lease of a lawn mower used to maintain the land. 
B)  An unwritten agreement to have a garage built on the land. 
C)  An unwritten lease for a term of five years. 
D)  An unwritten sale of land but where the sale was acknowledged in subsequent correspondence, signed by the party denying the existence of the sale. 
E)  An unwritten sale of land where the seller allowed the buyer to to enter of the property and commence construction thereon.

Question 11

Which one of the following is required to be evidenced in writing under the Statute of Frauds or its equivalent?

Accepted Answer

A)  Any contract involving goods 
B)  A contract to incur debt 
C)  Any contract involving money over $1,000 
D)  A guarantee 
E)  A contract of employment 
A)  Any contract involving goods 
B)  A contract to incur debt 
C)  Any contract involving money over $1,000 
D)  A guarantee 
E)  A contract of employment

Question 12

If the relationship between the contracting parties is primarily commercial in nature, what do the courts presume?

Accepted Answer

That the parties int

Question 13

Lawer entered into a contract for the sale of his business, a barbershop, to Cutter. The contract provided that Lawer would not open up a similar business within 25 kilometres of the barbershop being sold. About two weeks after the sale, Cutter noticed a new barbershop opening across the street in brand-new facilities. When he learned that the owner of the new shop was the very Lawer who sold the business to him, he sued for breach of contract. Which of the following correctly indicates the legal position of the parties?

Accepted Answer

A)  The court needs to determine only that the distance of 25 kilometres is reasonable; if it does, the restriction is valid and Cutter will succeed. 
B)  The provision will be void as it is broader than necessary to protect the goodwill of the business. 
C)  Any attempt to restrict competition is illegal, and no matter how reasonable the terms are, the provision will be void. 
D)  To determine whether or not the restriction is binding, the court asks only one question: does it reduce competition? 
E)  If the restriction is illegal, the whole contract for the sale and purchase of the business is necessarily void and Cutter can return the barbershop for the return of the purchase price. 
A)  The court needs to determine only that the distance of 25 kilometres is reasonable; if it does, the restriction is valid and Cutter will succeed. 
B)  The provision will be void as it is broader than necessary to protect the goodwill of the business. 
C)  Any attempt to restrict competition is illegal, and no matter how reasonable the terms are, the provision will be void. 
D)  To determine whether or not the restriction is binding, the court asks only one question: does it reduce competition? 
E)  If the restriction is illegal, the whole contract for the sale and purchase of the business is necessarily void and Cutter can return the barbershop for the return of the purchase price.

Question 14

Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?

Accepted Answer

A)  Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
B)  When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
C)  In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
D)  In domestic agreements, there is a presumption that there is no intention to be legally bound. 
E)  Commercial contacts are always binding, no matter what the stated intention. 
A)  Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements. 
B)  When intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test. 
C)  In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary. 
D)  In domestic agreements, there is a presumption that there is no intention to be legally bound. 
E)  Commercial contacts are always binding, no matter what the stated intention.

Question 15

What is a guarantee?

Accepted Answer

A written commitment

Question 16

In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?

Accepted Answer

A)  Holoboff was found liable for the tort of conspiracy to commit fraud. 
B)  Holoboff's parents were automatically liable for Holoboff's breach of contract. 
C)  Holoboff's parents were automatically liable for Holoboff's tort. 
D)  Holoboff was not liable for anything, as minors can never be liable. 
E)  Holoboff was found liable for breach of contract, despite being a minor. 
A)  Holoboff was found liable for the tort of conspiracy to commit fraud. 
B)  Holoboff's parents were automatically liable for Holoboff's breach of contract. 
C)  Holoboff's parents were automatically liable for Holoboff's tort. 
D)  Holoboff was not liable for anything, as minors can never be liable. 
E)  Holoboff was found liable for breach of contract, despite being a minor.

Question 17

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

Accepted Answer

It's true that some types of c

Question 18

Advertisers often use exaggerated claims, such as "This is the best little Buick in Canada." What test is used to determine whether such claims become part of the contract or not?

Accepted Answer

The courts will apply the reasonable per

Question 19

When a person is declared mentally incompetent by a court, who is appointed and for what purpose?

Accepted Answer

A trustee is appoint

Question 20

Married women are no longer considered incapacitated in contract law.

Accepted Answer

A) True 
 B)False

Indicate what types of contracts are binding on infants.

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

How do the courts determine whether a customer should have taken an exaggerated claim seriously?

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid; it is merely unenforceable by the courts.

From the perspective of contract law, why might the distinction between a guarantee and an indemnity be important?

Discuss the importance of putting contracts in writing, both from a legal perspective and from a practical business business point of view.

Whenever an adult enters into a contract with an infant, the adult is bound.

In which of the following situations would the contract relating to land not be enforceable?

Which one of the following is required to be evidenced in writing under the Statute of Frauds or its equivalent?

If the relationship between the contracting parties is primarily commercial in nature, what do the courts presume?

Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?

What is a guarantee?

In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

Advertisers often use exaggerated claims, such as "This is the best little Buick in Canada." What test is used to determine whether such claims become part of the contract or not?

When a person is declared mentally incompetent by a court, who is appointed and for what purpose?

Married women are no longer considered incapacitated in contract law.

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

Indicate what types of contracts are binding on infants.

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

How do the courts determine whether a customer should have taken an exaggerated claim seriously?

What is the term for a primary obligation of a third party to pay a debt along with a debtor?

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid; it is merely unenforceable by the courts.

From the perspective of contract law, why might the distinction between a guarantee and an indemnity be important?

Discuss the importance of putting contracts in writing, both from a legal perspective and from a practical business business point of view.

Whenever an adult enters into a contract with an infant, the adult is bound.

In which of the following situations would the contract relating to land not be enforceable?

Which one of the following is required to be evidenced in writing under the Statute of Frauds or its equivalent?

If the relationship between the contracting parties is primarily commercial in nature, what do the courts presume?

Mrs. Johnson is thinking of selling some property to her son. Which of the following is correct with respect to intention when entering into such a contract?

What is a guarantee?

In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

Advertisers often use exaggerated claims, such as "This is the best little Buick in Canada." What test is used to determine whether such claims become part of the contract or not?

When a person is declared mentally incompetent by a court, who is appointed and for what purpose?

Married women are no longer considered incapacitated in contract law.

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