Question 1

In Ascent Financial Services Ltd. v. Blythman, the Court decided

Accepted Answer

A)  that Anna and Art were in neither in breach of the sale of goodwill agreement nor the non-competition agreement. 
B)  that Carolyn and Don were in breach of only their fiduciary duty. 
C)  that Anna and Art were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
D)  that Carolyn and Don were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
E)  that Anna only and not Art was in breach of her fiduciary duty. 
A)  that Anna and Art were in neither in breach of the sale of goodwill agreement nor the non-competition agreement. 
B)  that Carolyn and Don were in breach of only their fiduciary duty. 
C)  that Anna and Art were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
D)  that Carolyn and Don were in breach of both the sale of goodwill agreement and the non-competition agreement, as well as their fiduciary duty. 
E)  that Anna only and not Art was in breach of her fiduciary duty.

Question 2

A void contract means that

Accepted Answer

A)  there is no contract. 
B)  the contract cannot be enforced. 
C)  the infant can escape the contract. 
D)  the contract is illegal. 
E)  the adult can escape the contract. 
A)  there is no contract. 
B)  the contract cannot be enforced. 
C)  the infant can escape the contract. 
D)  the contract is illegal. 
E)  the adult can escape the contract.

Question 3

Joe had a classic Buick automobile, and he agreed to trade it to Sam for a specified amount of cocaine. Sam took the car and, three days later, before he could deliver the cocaine to Joe, his cocaine was seized by the police and he was arrested. Joe is now bringing this action claiming that he's entitled to the car back. Indicate what arguments are available to Joe and the likelihood of him obtaining his car back.

Accepted Answer

Joe would either claim that the contract

Question 4

What is the age of majority in your province?

Accepted Answer

The age of majority

Question 5

Indicate under what circumstances parents are responsible for the contracts entered into by their children.

Accepted Answer

There is no such general responsibility;

Question 6

In which of the following situations would there be an enforceable contract despite the lack of a written contract?

Accepted Answer

A)  Contractor Joe agreed to build a $250,000 home for Sam on Sam's land, to be completed no later than 9 months from the date of signing. 
B)  Jack leases a storage facility for duration of his 2-year army hitch. 
C)  Sam agreed to guarantee a loan for his friend Joe. 
D)  Sam agreed to trade his vacation cottage with Joe in exchange for Joe's yacht. 
E)  Jack agreed to build a garage for Sam after he finished the remainder of his 2-year army hitch (he has 14 months left). 
A)  Contractor Joe agreed to build a $250,000 home for Sam on Sam's land, to be completed no later than 9 months from the date of signing. 
B)  Jack leases a storage facility for duration of his 2-year army hitch. 
C)  Sam agreed to guarantee a loan for his friend Joe. 
D)  Sam agreed to trade his vacation cottage with Joe in exchange for Joe's yacht. 
E)  Jack agreed to build a garage for Sam after he finished the remainder of his 2-year army hitch (he has 14 months left).

Question 7

All of the following contracts would be illegal, and not binding on the parties, except

Accepted Answer

A)  a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another. 
B)  a contract whereby one person agrees to spread false and damaging information about another. 
C)  a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price. 
D)  the act of paying for sexual favours (prostitution). 
E)  a contract in which lawyer agrees to represent an accused where the accused did commit the crime. 
A)  a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another. 
B)  a contract whereby one person agrees to spread false and damaging information about another. 
C)  a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price. 
D)  the act of paying for sexual favours (prostitution). 
E)  a contract in which lawyer agrees to represent an accused where the accused did commit the crime.

Question 8

Contracts that unduly restrict competition are void.

Accepted Answer

A) True 
 B)False

Question 9

The case of Canadian Imperial Bank of Commerce v. Milhomens examined the effect of one party's insanity on a contract. What did the Court find?

Accepted Answer

A)  For a contract to be voidable because of insanity, one party must be insane and the other party must have known (or ought to have known) of the insanity. 
B)  Contracts are not enforceable by either party if one party can establish a mental defect. 
C)  If a insane person enters into a contract, that contract is automatically void. 
D)  If a person has the mental faculties to sign a contract, that person cannot be insane. 
E)  The relevant test for insanity is simply whether one party believed the other to be insane, at the moment the offer was made. 
A)  For a contract to be voidable because of insanity, one party must be insane and the other party must have known (or ought to have known) of the insanity. 
B)  Contracts are not enforceable by either party if one party can establish a mental defect. 
C)  If a insane person enters into a contract, that contract is automatically void. 
D)  If a person has the mental faculties to sign a contract, that person cannot be insane. 
E)  The relevant test for insanity is simply whether one party believed the other to be insane, at the moment the offer was made.

Question 10

Which of the following is false 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.

Accepted Answer

A)  Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary. 
B)  The court will presume there is no intent to be legally bound in social situations. 
C)  Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present. 
D)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions. 
E)  An intention to be legally bound is a necessary element of a contract; without it there is no contract. 
A)  Although the court makes presumptions about the intention of parties to be bound, the presumption may be rebutted by evidence to the contrary. 
B)  The court will presume there is no intent to be legally bound in social situations. 
C)  Since family matters are private matters, an agreement between a husband and wife to transfer property from the husband to the wife could not be a contract even if all the other elements of a contract were present. 
D)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions. 
E)  An intention to be legally bound is a necessary element of a contract; without it there is no contract.

Question 11

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such a treatment.

Accepted Answer

Here students must examine the basic ide

Question 12

In the legal sense, to what does "insanity" refer?

Accepted Answer

When a person cannot

Question 13

What is an "executory contract"?

Accepted Answer

A contract yet to be performed

Question 14

Zlotnik incorporated a company shortly after graduation. The company bought a truck and a computer. Short of operating capital, the company, through its agent Zlotnik, borrowed $10,000 from the bank. In consideration for its loan, the bank took, in addition to the company's promise to pay the bank both principal and interest, a mortgage of its truck and computer. The company made its payment each month without incident. For reasons still unknown, the stock market took a tremendous fall, which caused the officer of the bank to call Zlotnik and ask him to guarantee the company's debt. The company was doing very well, so Zlotnik agreed to be guarantor of the debt. His oral assurances were sufficient for the bank officer. On these facts, which of the following is true?

Accepted Answer

A)  Zlotnik's promise to guarantee the debt is void because the guarantee itself is not in writing. 
B)  All guarantees and indemnities must be in writing and under seal to be binding. 
C)  Zlotnik's promise to guarantee the debt is enforceable wholly on the grounds that the Statute of Frauds with its writing requirement has been repealed. 
D)  Zlotnik's promise to guarantee the debt is unenforceable because it is not supported by any consideration flowing from the bank to Zlotnik. 
E)  Because Zlotnik's promise is a guarantee and not an indemnity, he automatically becomes the legal person primarily liable on the debt; the company becomes secondarily liable. 
A)  Zlotnik's promise to guarantee the debt is void because the guarantee itself is not in writing. 
B)  All guarantees and indemnities must be in writing and under seal to be binding. 
C)  Zlotnik's promise to guarantee the debt is enforceable wholly on the grounds that the Statute of Frauds with its writing requirement has been repealed. 
D)  Zlotnik's promise to guarantee the debt is unenforceable because it is not supported by any consideration flowing from the bank to Zlotnik. 
E)  Because Zlotnik's promise is a guarantee and not an indemnity, he automatically becomes the legal person primarily liable on the debt; the company becomes secondarily liable.

Question 15

Describe three situations in your jurisdiction where a contract must be evidenced in writing to be enforceable.

Accepted Answer

(Depending on the jurisdiction.) Contrac

Question 16

Because of the Charter of Rights and Freedoms, status Indians no longer have their capacity to contract limited.

Accepted Answer

A) True 
 B)False

Question 17

When will the court waive the requirement of writing?

Accepted Answer

If the parties can produce evi

Question 18

Which of the following attempts to form a contract would the court hold to be void?

Accepted Answer

A)  An oral agreement for a lease of land for two years. 
B)  A promise by one person to pay another to defame a third. 
C)  One of the parties was an infant at the time the agreement was formed. 
D)  A written promise to guarantee the debt of another person. 
E)  An oral agreement for the sale of land. 
A)  An oral agreement for a lease of land for two years. 
B)  A promise by one person to pay another to defame a third. 
C)  One of the parties was an infant at the time the agreement was formed. 
D)  A written promise to guarantee the debt of another person. 
E)  An oral agreement for the sale of land.

Question 19

In British Columbia, which of the following is correct with respect to the law of infants?

Accepted Answer

A)  An infant is bound by his contract for necessaries and beneficial contracts of service. 
B)  A contract with an infant is "absolutely void" except those contracts for necessaries and beneficial contracts of service. 
C)  An adult cannot enforce any contract against an infant while the infant is still under age unless the contract is made binding by another statute (e.g., government student loans). 
D)  If the adult did not know he was dealing with an infant, the adult is not bound by the contract. 
E)  An infant is not bound to repay his government student loan. 
A)  An infant is bound by his contract for necessaries and beneficial contracts of service. 
B)  A contract with an infant is "absolutely void" except those contracts for necessaries and beneficial contracts of service. 
C)  An adult cannot enforce any contract against an infant while the infant is still under age unless the contract is made binding by another statute (e.g., government student loans). 
D)  If the adult did not know he was dealing with an infant, the adult is not bound by the contract. 
E)  An infant is not bound to repay his government student loan.

Question 20

In his last year of high school, Larry 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 $2500. He paid $500 down and promised to pay another $500 next July 3, when he reached the age of majority, the remainder to be paid in monthly installments of $250. By July 3, Larry had graduated, thanks to his passing mark in English, and had no more use for the computer. Furthermore, he wanted to use his $500 birthday/graduation present for a down payment on a compact disc player and speakers. He failed to make his July 3 payment or any other to Computer Heaven. The balance outstanding at the time he quit making payments was $2300, including unpaid interest. On these facts, which of the following is true?

Accepted Answer

A)  If Larry doesn't pay, Computer Heaven Ltd. can sue Larry's parents because parents are liable for the debts of their minor children. 
B)  Because a contract with a minor is void, Computer Heaven Ltd. has never passed title and can just go get the computer, printer, paper, and program even if it has been resold to someone else. 
C)  Although the contract is unenforceable against Larry, if he affirms the contract after he reaches the age of majority, the seller will be able to sue him for breach of contract. 
D)  Computer Heaven Ltd. can sue Larry for breach of contract if it sues Larry after he becomes an adult. 
E)  Larry had no intention of making payments after July 3, so a valid contract did not exist after that date. 
A)  If Larry doesn't pay, Computer Heaven Ltd. can sue Larry's parents because parents are liable for the debts of their minor children. 
B)  Because a contract with a minor is void, Computer Heaven Ltd. has never passed title and can just go get the computer, printer, paper, and program even if it has been resold to someone else. 
C)  Although the contract is unenforceable against Larry, if he affirms the contract after he reaches the age of majority, the seller will be able to sue him for breach of contract. 
D)  Computer Heaven Ltd. can sue Larry for breach of contract if it sues Larry after he becomes an adult. 
E)  Larry had no intention of making payments after July 3, so a valid contract did not exist after that date.

In Ascent Financial Services Ltd. v. Blythman, the Court decided

A void contract means that

What is the age of majority in your province?

Indicate under what circumstances parents are responsible for the contracts entered into by their children.

In which of the following situations would there be an enforceable contract despite the lack of a written contract?

All of the following contracts would be illegal, and not binding on the parties, except

Contracts that unduly restrict competition are void.

The case of Canadian Imperial Bank of Commerce v. Milhomens examined the effect of one party's insanity on a contract. What did the Court find?

Which of the following is false 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.

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such a treatment.

In the legal sense, to what does "insanity" refer?

What is an "executory contract"?

Describe three situations in your jurisdiction where a contract must be evidenced in writing to be enforceable.

Because of the Charter of Rights and Freedoms, status Indians no longer have their capacity to contract limited.

When will the court waive the requirement of writing?

Which of the following attempts to form a contract would the court hold to be void?

In British Columbia, which of the following is correct with respect to the law of infants?

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

In Ascent Financial Services Ltd. v. Blythman, the Court decided

A void contract means that

What is the age of majority in your province?

Indicate under what circumstances parents are responsible for the contracts entered into by their children.

In which of the following situations would there be an enforceable contract despite the lack of a written contract?

All of the following contracts would be illegal, and not binding on the parties, except

Contracts that unduly restrict competition are void.

The case of Canadian Imperial Bank of Commerce v. Milhomens examined the effect of one party's insanity on a contract. What did the Court find?

Which of the following is false 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.

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such a treatment.

In the legal sense, to what does "insanity" refer?

What is an "executory contract"?

Describe three situations in your jurisdiction where a contract must be evidenced in writing to be enforceable.

Because of the Charter of Rights and Freedoms, status Indians no longer have their capacity to contract limited.

When will the court waive the requirement of writing?

Which of the following attempts to form a contract would the court hold to be void?

In British Columbia, which of the following is correct with respect to the law of infants?

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