Deck 10: Writing and Interpretation

Question 1

Use these fact situations to answer the related questions that follow. Fact Situation 1:
John is the 20-year-old nephew of Mary,who is 80 years of age and unable to get around or do things herself.Mary owns two properties in Toronto: 121 Thornton Lane and 122 Thornton Lane.Mary,who lives at 121 Thornton Lane,orally agrees with John that if he is good to her and does whatever services for her that she asks him to do from time to time during the rest of her life,she will leave John 121 Thornton Lane.John does not live with Mary,but does a number of things that Mary asks him to do,including taking her on trips,doing some errands,and also doing some odd jobs for both properties over the course of a year,after which Mary dies without leaving John 121 Thornton Lane.Now John sues her estate to get the house.
Fact Situation 2:
In 1921 Gus met Dick,and in the spring of 1922 Gus went to work for Dick as a farm labourer.For the first two years after that,Gus was paid $50.00 a month,plus room and board and meals.In 1924,Dick was in an accident and became disabled.Although Dick could not pay Gus wages,he promised to leave Gus his farm after he died if Gus stayed and worked the land.From 1924 on,Gus,who often considered leaving Dick's farm and had ample opportunity to do so,stayed and worked the farm on Dick's continued promise that if he stayed and worked the farm,the farm would be his after Dick's death.During this time Gus planted the fields,decided on what crops to plant,did repairs to Dick's house,and on Dick's behalf purchased livestock and then took care of it.Dick died in 1930 before he had a chance to make a will leaving Gus the land.
In Fact Situation 1,if John sues Mary's estate to get the house,

A)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties are immaterial because the contract was one of services for an indefinite period,so he will succeed.
B)the agreement between John and Mary is one for a period of a year and John cannot succeed.
C)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties come within the doctrine of part performance and John will succeed.
D)the agreement between John and Mary contains all the essential terms necessary to create a binding agreement that does not come within the Statute of Frauds,so John will succeed.
E)John's acts of taking Mary on trips and doing the errands and odd jobs on the properties do not come within the doctrine of part performance and John will not succeed.

Answer 1

E

Question 2

When dealing with the prohibition in the Statute of Frauds regarding oral contracts not to be performed in a year,which of the following is true?

A)An oral contract that is for an indefinite period,but could be performed within a year,is not prohibited by the Statute.
B)An oral contract that is to be performed over a period of one year,commencing the day after the formation of the contract,is not prohibited by the Statute.
C)An oral contract that is to be performed over a period of one year,but commences two days after the conclusion of the contract,is prohibited by the Statute.
D)An oral contract that provides for a specific period for performance of more than a year,but also confers a power of determination that may be exercised within the year,is prohibited by the Statute.
E)all of the above

Answer 2

E

Question 3

Happy Go Lucky Company (HGLC)enters into an oral employment agreement with Albert under which Albert becomes the managing director of HGLC for a period of two years.The employment agreement provides that both Albert and HGLC have the right to terminate the contract on six months' notice to the other.After working for the company for eight months,HGLC gives Albert two months' notice of termination.In this situation,

A)the Statute of Frauds does not apply because the essential terms of the contract are present,so Albert can enforce the term that he be given six months' notice.
B)the Statute of Frauds applies,because there has not been part performance by Albert,so Albert cannot enforce the term that he be given six months' notice.
C)the Statute of Frauds does not apply,because the contract is one for an indefinite period,so Albert can enforce the term that he be given six months' notice.
D)the Statute of Frauds applies,because the contract extends over a period of more than a year,so Albert cannot enforce the term that he be given six months' notice.
E)none of the above

Answer 3

D

Question 4

Allan and Nora enter into an oral agreement for the sale of Allan's land to Nora for a price to be decided on later,and Allan sends Nora a written memorandum setting this out.In the memorandum Allan goes on to state that settling on the price of the land is very important.In a lawsuit by Nora to get the land,

A)Nora will succeed on a quantum meruit basis.
B)Nora will not succeed since the memorandum is not sufficient compliance with the Statute of Frauds.
C)Nora will not succeed since the essential terms of the contract are not present.
D)Nora will succeed since the essential terms of the contract are present.
E)Nora will succeed since the memorandum is sufficient compliance with the Statute of Frauds.

Question 5

It is good business practice of have a written record of a contract because

A)provisions of long-term contracts will not have to be committed to memory.
B)many disputes can be avoided by keeping an accurate record.
C)a written record is more accurate than human memory.
D)human memory is fallible.
E)all of the above

Question 6

The form of contract includes

A)contracts whose terms are entirely in writing in several documents.
B)contracts whose terms are entirely oral.
C)contracts whose terms are entirely in writing in one document.
D)contracts whose terms are both oral and in writing.
E)all of the above

Question 7

The phrase "no action shall be brought" in the Statute of Frauds applies to procedure and not validity.This means that

A)a party can bring a legal action,but only if a new contract is proven to supersede the original.
B)a party cannot bring a legal action,since the contract is void.
C)a party cannot bring a legal action,because the Statute affects the validity of the contract.
D)although no action may be brought on the contract itself,the contract may still affect the legal relations between the parties in several ways.
E)a party cannot bring a legal action at all because one or more of the essential terms of the contract are missing.

Question 8

Use the fact situation in Q15 to answer the related question that follows. In Fact Situation 2,in a lawsuit by Gus to get ownership of the land,

A)Gus will succeed by virtue of the doctrine of part performance.
B)Gus will not succeed because the agreement between Dick and Gus is unenforceable under the Statute of Frauds.
C)Gus will not succeed because the agreement between Dick and Gus is void under the Statute of Frauds.
D)Gus will not succeed,but will be entitled to a quantum meruit claim for the work and services he did for Dick.
E)the agreement between Dick and Gus does not contain all the essential terms necessary to create a binding agreement.

Question 9

George owes Michael Moneybags $1000.Susan,George's sister,goes to Michael Moneybags and makes this statement: "If my brother is unable to pay,I shall make payment." Susan's statement is

A)a representation.
B)a promise of guarantee.
C)a promise of indemnity and a promise of guarantee.
D)a promise of indemnity.
E)a misrepresentation.

Question 10

The substance of a contract may have a variety of

A)statutes.
B)forms.
C)parties.
D)attributes.
E)beneficiaries.

Question 11

Edward and his wife,Mary,go into a bank.Edward wants to loan $10 000.00 from the bank,but the bank manager wants some kind of security.Because they are in a hurry,Mary says,"Give Edward the money and I will pay Edward's loan." The bank manager looks at her and,being afraid that the bank will not loan Edward the money,Mary says,"Please,if Edward does not pay the loan,I will." The bank manager has Mary sign a document with both of her statements in it.In this situation,

A)Mary is an indemnifier.
B)Mary has indemnified the loan to the bank.
C)Mary is a guarantor of Edward.
D)Mary has guaranteed the loan to the bank.
E)all of the above

Question 12

The Statute of Frauds

A)requires that contracts with minors be in writing.
B)prevents contracts with minors.
C)renders unenforceable certain types of contracts unless they are in writing.
D)is an English law that does not apply in Canada.
E)renders unenforceable contracts with minors.

Question 13

George owes Michael Moneybags $1000.Susan,George's sister,goes to Michael Moneybags and makes this statement: "I shall pay the debt of my brother." This statement is

A)a promise of indemnity.
B)a promise of guarantee.
C)a misrepresentation.
D)a promise of guarantee and indemnity.
E)a representation.

Question 14

It has often been said that by defeating the reasonable expectation of the parties,the Statute of Frauds promotes

A)certainty and predictability.
B)more frauds than it prevents.
C)guarantees and indemnities.
D)good faith bargaining.
E)binding contractual relations.

Question 15

A enters into an oral contract under which A is to sell his land to B,and B gives A a deposit of $100 000.00.B now changes his mind and wants his deposit back from A.In an action by B to recover the deposit,

A)A can raise the validity of the agreement as a defence to B's action.
B)A cannot use the validity of the agreement as a defence to B's action.
C)A cannot use the validity of the agreement as a defence to B's action because the agreement is unenforceable.
D)B cannot sue A at all because the contract is unenforceable to B's action.
E)none of the above

Question 16

A guarantee is

A)a promise to be primarily liable for the debt of a debtor.
B)a promise to enter into an agreement when a debtor defaults.
C)a promise to pay only if the debtor defaults.
D)a promise to purchase goods.
E)a promise to add one's signature to a legal document.

Question 17

A distinction must always be drawn between the substance of a contract and its

A)parties.
B)benefits.
C)principles.
D)form.
E)beneficiaries.

Question 18

John orally agrees to sell his land to Mary for $50 000.00,and Mary gives John a deposit of $15 000.00.The agreement is to close (be completed)in 30 days.Two days later,John gives Mary a note saying,"I know that you are buying the land to develop it." Five days after this,John tells Mary he has changed his mind and refuses to sell her the land,and Mary accepts this.In a lawsuit by Mary to recover her deposit,

A)the deposit will be recoverable on the basis of a total failure of consideration.
B)the deposit will not be recoverable because the time for completion has not yet occurred.
C)the deposit will not be recoverable because the agreement is not in writing.
D)the deposit will be recoverable because Mary has done nothing wrong.
E)none of the above

Question 19

Use the fact situation in Q15 to answer the related question that follows. Review Fact Situations 1 and 2.What is the difference between them?

A)In Fact Situation 1,John's performance is strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is not strictly referable to Dick's farm.
B)In Fact Situation 1,the essential terms of the agreement are not present,but they are present in Fact Situation 2.
C)In Fact Situation 1,John's performance is not strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is strictly referable to Dick's farm.
D)In Fact Situation 1,all of the essential terms of the agreement are present,but they are not present in Fact Situation 2.
E)There is no difference between the two fact situations.

Question 20

Under the Statute of Frauds,a "promise to answer for the miscarriage of another" has been interpreted to mean

A)a promise to pay for goods not paid for by a purchaser.
B)a promise to pay for the injury caused by the tort of another.
C)a promise to perform a contract that has been breached by another.
D)a promise to pay for the injury caused by the tort of another and a promise to perform a contract that has been breached by another.
E)a promise to settle a debt owed by another.

Question 21

Acceptance under the Sale of Goods Act means

A)an unconditional willingness to enter into an agreement with the seller on terms specified.
B)conduct by the buyer to accept the offer made by the seller.
C)accepting the goods.
D)accepting the terms of the contract of sale.
E)any conduct by the buyer in relation to the goods that amounts to a recognition of the existence of a contract.

Question 22

A and B are negotiating a contract by faxes going back and forth between them.During their negotiations,they agree on the subject matter of the contract,the price,and the date of performance.However,both agree that once the negotiations are complete,a formal written contract will be prepared and signed.In this situation,

A)one issue is whether the decision of A and B to put the negotiations into a formal written contract is a mere expression of their desire as to the manner in which the contract transaction will proceed.
B)one issue is whether the negotiations contain all of the essential elements of a contract.
C)one issue is whether the decision of A and B to put the agreement that arises out of the negotiations into a formal written contract is a term of the agreement.
D)one issue is whether the decision of A and B to put the negotiations into a formal written contract is a condition precedent to the formation of a contract.
E)none of the above

Question 23

Leigh Miller operates a coffee shop called Coffee Crazed in a trendy area of town.She wants to change coffee suppliers and recently met with Juan Carlos,a sales representative for Columbia Coffee Beans Wholesale Supply Ltd. ,to discuss the company's products and prices.She agrees orally to purchase a two-year supply of coffee beans.She wants to reduce the agreement to writing.Which of the following is not an essential term of the contract as required by the Statute of Frauds?

A)price of the coffee beans.
B)adequate description of the beans being purchased.
C)the colour of the boxes the coffee beans will be shipped in.
D)identity of the parties.
E)they are all essential terms of the contract

Question 24

Which of the following is NOT one of the kinds of conduct that must be established by a party who seeks to enforce an agreement,under the Sale of Goods Act,that is not in writing?

A)the provision of consideration
B)acceptance by the buyer
C)actual receipt of the goods by the buyer
D)part payment tendered by the buyer and accepted by the seller
E)something by way of earnest given by the buyer to the seller

Question 25

A and B have just signed a written agreement for the purchase by A of B's house.During the negotiations,A made it clear to B that his purchase was conditional on A conducting a building inspection of house within five days of the date of the agreement,which was satisfactory to A.However,this condition is not included in the agreement.In this situation,

A)evidence of the building inspection would be admissible because it is a collateral agreement,the consideration for which is the agreement of purchase and sale.
B)evidence of the building inspection would not be admissible because,since this is an agreement for land,the Statute of Frauds applies to bar evidence of the building inspection.
C)evidence of the building inspection cannot be given because of the parol evidence rule.
D)evidence of the building inspection would be admissible because it is a subsequent agreement.
E)evidence of the building inspection would be admissible because it is a condition precedent to the agreement of purchase and sale.

Question 26

A and B have been dealing together for 10 years,during which time A buys steel ingots from B.Throughout the 10-year period,A has always ordered the highest quality steel from B and B has delivered it.Last week,A ordered 1000 ingots of steel from B,but when he filled out the purchase order,A forgot to specify the highest quality of steel,and when the purchase order was received,B's employee delivered steel ingots of a lesser quality to A.A refuses the shipment,and B,whose business is suffering in a bad economy,finds himself forced to sue A.In this situation,

A)the court will be unable to import any kind of term into the contract because it is in writing.
B)the court will consider that it was a condition precedent to the purchase by A that the steel ingots be of the highest quality.
C)the court will look at the previous dealings of A and B and imply a term that B was to supply steel ingots of the highest quality.
D)the court will set aside the contract by reason that it is silent as to the quality of steel that B is to supply to A.
E)none of the above

Question 27

A agrees to buy a share in B's invention for a certain sum on the condition that C first approves the invention.However,the written contract makes no reference to C's approval.C never gives his approval.B now sues A for the purchase price.In this situation,

A)whether or not C gives his approval is not relevant to the main contract between A and B.
B)C's approval is a condition precedent that must be met before there is a contract between A and B
C)the parol evidence rule applies to exclude the condition of C's approval.
D)C's approval would be a warrantee used to overcome the parol evidence rule.
E)A cannot rely on C's approval as a condition to the contract with B,because C is not a party to the contract.

Question 28

Allen was negotiating to rent a flat in Bob's house.During the negotiations,Allen told Bob that if he took the flat,he would have use of two basement rooms for the storage of his surplus furniture and also the use of the garden.Subsequently,a written agreement was drawn up for the lease of the flat that made no reference to either the storage rooms or the garden.In this case,

A)because the negotiations were not included in the contract,Allen will get the flat,not the storage rooms or garden.
B)because of the parol evidence rule,Allen cannot give evidence of the use of the storage rooms and garden as being part of the contract
C)although the parol evidence rule applies,the contract being partly oral and partly written,Allen can give evidence about the storage rooms,but not the garden.
D)although the parol evidence rule applies,the contract being partly written and partly oral,Allen can provide evidence of the oral part of the contract about the storage rooms and garden.
E)none of the above

Question 29

The plaintiffs were growers of oranges in Spain and the defendants were ship owners.The plaintiffs wished to export their oranges to England and shipped them to the defendants' vessel,relying on an oral promise by the defendants' agent that the vessel would sail straight to London.In fact,the vessel went first to Antwerp,so that the oranges arrived late in London and the plaintiffs lost a favourable market.When the plaintiffs claimed damages for breach of contract,the defendant owners relied on the bill of lading,which expressly allowed them to proceed "by any route whether directly or indirectly" to London.In this case,

A)the bill of lading is evidence of the entire contract between the plaintiffs and ship owners.
B)the bill of lading contains an express term,and the defendants are bound by that term.
C)the contract consists of both the written bill of lading and the oral promise by the defendant's agent.
D)evidence of the oral promise of the defendant's agent cannot be admitted because of the parol evidence rule.
E)the court will find that there is no contract at all.

Question 30

A and B enter into a lease whereby A is to lease a unit in a plaza from B to be used as a retail men's clothing store.When the lease is drawn up and signed,it simply says that A is leasing the unit as a store.A now takes the position that he can have any kind of store and decides to rent out videos and DVDs,just like the Video and DVD store already in the plaza.In this situation,

A)the court will attempt to resolve the ambiguity for A and B.
B)the court will look to the intention of A and B in entering into the lease.
C)the court will permit evidence that A intended to use the store as a retail men's clothing store and that B leased the unit to A on this basis.
D)the term store in the written lease is ambiguous.
E)all of the above

Question 31

The doctrine of part performance as it relates to the Statute of Frauds means that

A)if the plaintiff can show that it has partly performed a contract,then the defendant will have to pay for the portion of the contract performed.
B)a defendant who partly performs an oral contract is entitled to enforce the oral contract.
C)if a plaintiff can show that he or she has partly performed an oral contract concerning land in reliance on the contract,the court will accept the part performance as evidence of the contract in place of the written contract.
D)a plaintiff who partly performs an oral contract is entitled to rely on such performance as evidence of the contract.
E)if a plaintiff can show that he or she has performed part of any oral contract,the court will accept such part performance as evidence of the contract in place of the written contract.

Question 32

Which of the following is true about consumer protection statutes?

A)Provincial legislation is not as encompassing as federal legislation.
B)The federal government believes there is the need to be a big brother upon which one can call.
C)It covers businesses as well as consumers.
D)It only addresses the buying and selling of goods.
E)It is concerned with only one party to the contract,the purchaser.

Question 33

A makes a contract under which B Company is to repair and repaint A's pier.Under the contract,A has the right to specify the materials to be used.B Company induces A to specify the use of a particular paint that it made,giving A assurances of its quality.The paint is supplied by B Company,but it is found to be unsuitable,and A has to spend $40 000.00 to correct the matter.In a lawsuit by A against B,

A)the court will find that the inducement of the quality of paint was a collateral contract that formed the consideration for the main contract to repair and repaint A's pier.
B)the court will find that B Company's inducement of the quality of the paint was a mere invitation to treat and nothing more.
C)the court will be unable to get around the parol evidence rule and A will lose her or his law suit.
D)the court will find that A should have ensured that the inducement of the quality of the paint was put into the written contract.
E)the court will find that B Company's assurances about the quality of the paint is a condition precedent to the contract.

Question 34

A is employed by B as a truck driver.C is A's partner,and they go on deliveries together.One day,while backing up the truck,A drives negligently and injures C.C successfully sues B on the basis of vicarious liability.In a law suit by B against A,

A)the court will try to create a new employment contract between A and C so as to allow C to recover from A.
B)the court will imply a term into A's contract of employment with B that A will take reasonable care and skill in the performance of his duties.
C)the court will not imply any term into A's contract of employment with B.
D)the court will look to custom and usage of the trade to determine whether it should imply a term in the employment contract between A and C.
E)none of the above

Question 35

When a person goes to court to have a provision of a contract interpreted,the court will

A)ask a jury to determine the meaning of the words.
B)assign its own meaning to the words.
C)seek the most reasonable meaning that can be attributed to the words in the circumstances.
D)examine the facts of the situation and then ask the parties what they meant.
E)determine the meaning of the words by asking the parties what they meant.

Question 36

When a contract is wholly oral,the first problem of the court is

A)to determine the liberal meaning of the words.
B)to speak to the parties.
C)to read the contract.
D)to determine the dictionary meaning of the provisions.
E)to determine what exactly the parties agreed to.

Question 37

In choosing between conflicting testimony,a court will

A)refuse to accept either testimony because one person's word is as good as another's,and it will impose its own meaning.
B)seek corroboration of one of the versions of a story from a third party,and if that is not possible,it will choose between the versions by basing its decision on the credibility of the parties.
C)choose a version of the story that is in accordance with well-known legal principles.
D)refuse to accept either testimony because one person's word is good as another's,and it will impose a meaning that is determined by a jury of ordinary persons.
E)choose the version of the story that is in accordance with societal norms.

Question 38

In respect of a contract to which the Statute of Frauds applies,which of the following is NOT true?

A)Both parties must sign the contract.
B)The essential elements of the contract must be in writing.
C)The defendant must sign the contract.
D)The contract must be under seal.
E)Both A and D are not true.

Question 39

Which of the following is true with regard to a contract that has to be in writing?

A)If the contract is handwritten,it must be in ink.
B)All implied terms must be carefully identified.
C)If the contract is a guarantee,consideration must be identified.
D)The parties must meet to discuss the terms.
E)The contract does not have to be wholly within a single document.Several written notes may be taken together to satisfy the Statute of Frauds.

Question 40

A agrees to paint B's house.B then says to A,"If you paint my house,I'll give you $500.00." In this situation,

A)the first agreement does not include the price,but the second agreement does.
B)together,the promise to pay and the first agreement to paint form one whole contract.
C)the entering into the main contract is the consideration for the collateral contract.
D)the promise to pay $500.00 is collateral to the first agreement to paint.
E)all of the above

Question 41

Michael Products Limited and Jensen Corporation enter into an agreement under which Michael Products Limited agrees to supply 20 tonnes of soap to Jensen Corporation.Jensen agrees to pay $20 000 for the product.The agreement includes a provision to the effect that the agreement is conditional of Jensen providing a letter from a bank,no later than two days after the execution of the agreement,that Jensen Corporation has the funds to pay for the goods.Three days after the signing of the agreement,Michael Products Limited has not provided the letter from the bank.Jensen Corporation can_ because

A)continue with the contract;the contract is not void
B)walk away from the contract;the contract is void
C)continue with the contract;the contract is effective
D)terminate the contract;the contract is void

Question 42

A collateral contract is

A)an unenforceable agreement that is related to another written agreement.
B)a separate agreement between the parties included in a written contract.
C)an agreement between parties to a contract that precedes another written agreement.
D)a separate agreement between the parties made at the same time as a main agreement between the parties,but not included in the written document.
E)a void agreement that is related to another written agreement.

Question 43

What is a condition precedent?

A)an event that happens before a contract takes effect
B)an event that is related to a contract and happens before a contract takes effect
C)an unconditional undertaking given by a promisee to the promisor to perform an event before a contract takes effect
D)any set of circumstances or events that the parties agree must be satisfied or must happen before their contract takes effect
E)an undertaking,conditional on the execution of a contract between the parties,that a promisee makes to a promisor prior to entering into a contract

Question 44

Which of the following is NOT true?

A)The parol evidence rule does not affect the interpretation of express terms already in a contract.
B)Implied terms usually result from long-established customs.
C)When parties deal expressly with a matter in a contract,a court is not precluded from finding an implied term on the same matter.
D)The parol evidence rule does not exclude evidence of an oral agreement that the parties may each after they have entered into the written agreement.
E)The courts will admit evidence of an oral understanding about a condition precedent even when the written contract specifies that the rights of the parties are governed exclusively by the written contract.

Question 45

To interpret the express provisions of a contract,a court will

A)examine the most widely held meaning of the words.
B)begin with the ordinary meaning of the words and then will examine their meaning within the context of the words.
C)examine the ordinary meaning of the words and then will determine the most widely held meaning of the words.
D)begin with the ordinary meaning of the words and then will ask a jury to determine the societal meaning of the words.
E)examine the meaning of the words within the context and then will examine the ordinary meaning of the words.

Question 46

An implied term is

A)a term that the court will ask the jury to consider implying in the contract.
B)a term that the promisor intended to include in the contract.
C)an express term that is removed from the contract.
D)a term that the parties advise the court can be implied into the contract.
E)a term that is not included in the contract but which the parties,as reasonable persons,would have included had they thought about it.

Question 47

When we say that a contract is unenforceable under the Statute of Frauds,we mean that there never was a contract at all.

Question 48

Implied terms usually result from

A)a decision of the court.
B)a decision of the promisee.
C)long-established customs of a particular trade.
D)a decision of the promisor.
E)agreement between the parties.

Question 49

Which of the following is NOT a usual source of implied terms?

A)terms that are reasonably necessary,in accordance with the expectation of the parties,to promote business efficacy
B)long-established customs in particular types of trades
C)long-established customs in particular types of transactions
D)what the parties discussed prior to entering the contract
E)none of the above

Question 50

Mercantile Limited,a corporation in Toronto,enters into an agreement with Jackson to advance $300 000 to Jackson for the purchase of farming equipment.Jackson agrees to give Mercantile Limited a mortgage over his home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Jackson's home of at least $350 000.The appraisal provision is known as

A)an implied term.
B)a warranty.
C)a condition term.
D)a condition precedent.
E)an appraisal warranty.

Question 51

A contract that is unenforceable under the Statute of Frauds may be saved by a subsequent written memorandum.

Question 52

To determine the ordinary meaning of words in a contract,the court will consider

A)what the intention of the parties was.
B)what the parties said during their negotiations.
C)what the dictionary says.
D)what is usual business practice.
E)all of the above

Question 53

A business contract includes a term saying that a manufacturer will use "smooth-grained sand" in a construction project "if this quality is available.The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials.This is an example of the court introducing an implied term based on

A)statutory requirements.
B)previous dealings between the parties.
C)business efficacy.
D)principles of statutory interpretation.
E)the nature of the trade.

Question 54

Evidence regarding certain oral terms that were discussed between the parties to a contract that has been reduced to writing

A)cannot be introduced into court because of the rule of express terms.
B)cannot be introduced into court because there were no prior dealings between the parties.
C)cannot be introduced into court because of the parol evidence rule.
D)cannot be introduced into court because of the rule regarding consideration.
E)cannot be introduced into court because of the rule of implied terms.

Question 55

Which of the following is NOT true?

A)The parol evidence rule does not affect the interpretation of express words already in a contract.
B)The parol evidence rule does not prevent evidence of oral contracts entered into after the written contract.
C)The parol evidence rule permits evidence of oral contracts entered into after the parties entered the written contract.
D)The parol evidence rule excludes evidence of oral contracts entered into after the parties entered into a written contract.
E)The parol evidence rule excludes terms that were discussed before entering into a contract but were not included in the contract.

Question 56

When a contract is oral,the first task of a court is to determine what the parties agreed to.

Question 57

A written document can contain both a guarantee and an indemnity.

Question 58

What is the parol evidence rule?

A)the rule that requires that persons on parole seek the approval of a court before entering into any contract
B)the rule that requires a party to a contract from adducing evidence from a third party regarding discussions he or she may have had with such a third party about the provisions of a contract
C)a rule that prevents convicted persons on parole from entering into contractual obligations
D)the rule that prevents a party from adding to a contract a term that was previously agreed upon but was not included in the final written contract.
E)The rule that prevents a court from interpreting a contract that is illegal.

Question 59

An oral contract concerning land will always be unenforceable under the Statute of Frauds.

Question 60

The essential elements of a contract that must be in a written memorandum are the parties and the price.

Question 61

A guarantee to be enforceable must be in writing;however,a promise of indemnity does not have to be in writing to be enforceable.

Question 62

The best way to ensure that terms advantageous to a business are enforceable against a consumer is to use a detailed standard form contract that meets the requirements of consumer protection legislation.

Question 63

The consideration for a main contract can be a collateral contract.

Question 64

The parol evidence rule does not permit evidence of oral contracts entered into between the parties before they enter into a written agreement.

Question 65

The parol evidence rule does not permit evidence of oral contracts entered into between the parties after they enter into a written agreement.

Question 66

One Ontario Consumer Protection Act provision prohibits a motor vehicle repairer from charging for work unless an estimate meeting the prescribed requirements has been given or waived.

Question 67

In the formation of a contract,the intention of the parties may be just as important as the essential elements of the contract.

Question 68

The contra proferentem rule is used against the party who made the contract in favour of the party who did not.

Question 69

Mercantile Limited,a corporation in Toronto,enters into an agreement with Jackson to advance $300 000 to Jackson for the purchase of farming equipment.Jackson agrees to give Mercantile Limited a mortgage over his home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Jackson's home of at least $350 000.The appraisal provision is known as an appraisal warranty.

Question 70

Conditions precedent can be enforced if they are oral.

Question 71

Consumer protection statutes address the form and content of consumer contracts relating to goods only.

Question 72

An unenforceable contract is a void contract.

Question 73

Generally speaking,the parol evidence rule is hard and inflexible.

Question 74

At common law,once the terms of a contract are determined,it is irrelevant that it is only a verbal contract.

Question 75

An oral contract determined to be unenforceable pursuant to the Statute of Frauds is void.

Question 76

The Statute of Frauds requires that contracts with minors must be in writing.

Question 77

The parol evidence rule excludes evidence about the formation of a contract.

Question 78

A judge is in the best position to assess credibility.

Question 79

Mary tells John,"I shall pay the debt my sister owes you." This statement is a promise of guarantee.

Question 80

Under the Statute of Frauds,a promise of indemnity and a promise of guarantee must be in writing to be enforceable.