Question 1

Andy thinks he is selling an ordinary painting for $50. Bill knows that he is in fact buying something by Robert Bateman. The legal effect of this contract is:

Accepted Answer

A)   Voidable
B)   Unenforceable
C)   Void
D)   Enforceable D

Question 2

A void contract is one that one party can enforce if they wish.

Accepted Answer

A) True 
 B)False  False

Question 3

Contracts with minors for necessaries are enforceable.

Accepted Answer

A) True 
 B)False  True

Question 4

Even reasonable contracts with minors are unenforceable.

Accepted Answer

A) True 
 B)False

Question 5

Both parties have signed an agreement regarding the purchase and sale of a new vehicle. Which of the following would allow the contract to be set aside on the basis of misrepresentation?

Accepted Answer

A)   The misrepresentation must have been made knowingly.
B)   The misrepresentation must have induced the party to buy the vehicle.
C)   The misrepresentation must have been in writing.
D)   The misrepresentation must have been a false statement.

Question 6

Capacity is the contractual element to protect a vulnerable person from being taken advantage of.

Accepted Answer

A) True 
 B)False

Question 7

In online transactions, suppliers have a duty to disclose terms that a reasonable person may not expect in a contract.

Accepted Answer

A) True 
 B)False

Question 8

Capacity is a contractual element that allows the contract to be evaluated by society.

Accepted Answer

A) True 
 B)False

Question 9

You can enforce a contract with a friend for not paying the amount owed during a poker game.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a requirement to prove non est factum?

Accepted Answer

A)   The subject matter was not what the signer believed it to be
B)   The signer could not read the contract
C)   The signer was not careless in signing the contract
D)   The subject matter was exactly what the signer believed it to be

Question 11

A court will not enforce a contract that is against public policy.

Accepted Answer

A) True 
 B)False

Question 12

A contract made under the threat of violence to the person is void.

Accepted Answer

A) True 
 B)False

Question 13

Generally, contracts with minors are enforceable.

Accepted Answer

A) True 
 B)False

Question 14

Legality is the contractual element to protect a vulnerable person from being taken advantage of.

Accepted Answer

A) True 
 B)False

Question 15

Purposely making a false statement to induce another into a contract is innocent misrepresentation.

Accepted Answer

A) True 
 B)False

Question 16

The same remedies are available for both fraudulent and innocent misrepresentation.

Accepted Answer

A) True 
 B)False

Question 17

John and Mary are thinking of buying a house. They see one they like and arrange to view it. The current owner, Emelda shows them over the house stating, "I've owned this house for 20 years, and it is completely sound. There are no problems." In fact, as John and Mary discover later, the house is infested with termites. If Emelda did know there were termites and was desperate to sell, this would be an example of:

Accepted Answer

A)   Innocent misrepresentation
B)   Undue influence
C)   Duress
D)   Fraudulent misrepresentation

Question 18

An intoxicated person who does not try to set aside the contract upon becoming sober will be bound by the contract.

Accepted Answer

A) True 
 B)False

Question 19

In which of the following situations can a minor end a contract with no liability?

Accepted Answer

A)   A contract for the rent on an apartment
B)   A contract for a future vacation
C)   A contract for the purchase of clothes
D)   A contract for the medical services

Question 20

In Canada, the age of majority is 21.

Accepted Answer

A) True 
 B)False

Exam 6: Contracts: Problems With Formation

Andy thinks he is selling an ordinary painting for $50. Bill knows that he is in fact buying something by Robert Bateman. The legal effect of this contract is:

A void contract is one that one party can enforce if they wish.

Contracts with minors for necessaries are enforceable.

Even reasonable contracts with minors are unenforceable.

Both parties have signed an agreement regarding the purchase and sale of a new vehicle. Which of the following would allow the contract to be set aside on the basis of misrepresentation?

Capacity is the contractual element to protect a vulnerable person from being taken advantage of.

In online transactions, suppliers have a duty to disclose terms that a reasonable person may not expect in a contract.

Capacity is a contractual element that allows the contract to be evaluated by society.

You can enforce a contract with a friend for not paying the amount owed during a poker game.

Which of the following is not a requirement to prove non est factum?

A court will not enforce a contract that is against public policy.

A contract made under the threat of violence to the person is void.

Generally, contracts with minors are enforceable.

Legality is the contractual element to protect a vulnerable person from being taken advantage of.

Purposely making a false statement to induce another into a contract is innocent misrepresentation.

The same remedies are available for both fraudulent and innocent misrepresentation.

An intoxicated person who does not try to set aside the contract upon becoming sober will be bound by the contract.

In which of the following situations can a minor end a contract with no liability?

In Canada, the age of majority is 21.