Question 1

Which of the following is incorrect with respect to the law of incapacity?

Accepted Answer

A)  To escape a contract on the basis of insanity, the insane person need only show that he did not know what he was doing at the time the contract was formed. 
B)  Even after the passage of the Charter of Rights and Freedoms, some contracts entered into with status Indians cannot be enforced. 
C)  Married women are no longer incapacitated. 
D)  Some Crown corporations have limited capacity to contract. 
E)  Trade unions may have limited capacity to contract.

Question 2

What does the decision in Bayview Credit Union Ltd.v.Daigle illustrate?

Accepted Answer

A)  Businesspeople are at a risk when dealing with minors as if they were adults. 
B)  Parents are responsible for contracts made by their children. 
C)  Contracts made by children are void. 
D)  When a minor enters into a contract, there is no consideration. 
E)  A person under the age of majority cannot intend to enter into a contract.

Question 3

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

Accepted Answer

The answer of In the legal sense,to what does "insanity"...

Question 4

When parents have led a merchant to believe that their infant child is acting as their agent,the parents are liable.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When a third party says,"I'll see that you get paid," there is an assumption of a primary obligation,and the promise is a(n)________.

Accepted Answer

A)  indemnity 
B)  guarantee 
C)  contract 
D)  obligation 
E)  interest

Question 7

Which of the following is incorrect with respect to the law of infants and their parents?

Accepted Answer

A)  As a general rule, parents are not responsible for the contracts of their children. 
B)  As a general rule, parents are not responsible for the torts of their children. 
C)  A parent is responsible for the debt of his child if that parent has guaranteed the loan. 
D)  A parent can be liable for a tort committed by her child if it can be shown that the parent was negligent as well. 
E)  A parent is responsible for the obligations of her children in both tort and contract law.

Question 8

Which of the following is true 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)  An intention to be legally bound is not a necessary element of a contract. 
B)  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. 
C)  The court will presume there is always an intent to be legally bound in family situations. 
D)  The court makes presumptions about the intention of parties to be bound; whether that presumption may be rebutted by evidence to the contrary makes no difference to the court. 
E)  Parties may expressly state their intention to be legally bound, in which case the court need not rely on presumptions.

Question 9

"A person's intention to be bound by contracts is presumed." Discuss the accuracy of this statement.

Accepted Answer

The answer of "A person's intention to be bound by...

Question 10

Indicate what types of contracts are binding on infants.

Accepted Answer

The answer of Indicate what types of contracts are binding...

Question 11

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 12

(Modify this question for your jurisdiction.)Bill,a college graduate,rented office space under a two-year lease.He needed the space because he contracted with the provincial government to create a program to integrate the various inventories of different government agencies.Bill hired Janet and Fred as full-time programmers for one year.He bought three desks for cash.He bought a $2000 laser printer,for which his dad signed as a guarantor.He bought another computer from a different seller under a conditional sales contract.Which of these contracts should be evidenced in writing to be enforceable?

Accepted Answer

A)  the contract with the government, because it will take more than a year to complete 
B)  the employment contracts 
C)  the contracts for the desks 
D)  his dad's guarantee 
E)  the lease

Question 13

A contract that has been partially performed will be enforceable even though it is not in writing as required under the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

The answer of Discuss the importance of putting contracts in...

Question 15

Ted,a 17-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 $2000 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.

Accepted Answer

A)  If Ted doesn't make his payments, Tech can sue Ted's parents, because parents are liable for the debts of their minor children. 
B)  This contract is void; therefore, Tech can repossess the laptop which is technically still his whether Ted makes the payments or not. 
C)  If this contract is in writing and Ted doesn't make his payments, Tech can sue Ted for breach of contract. 
D)  This contract is a legal contract enforceable by Ted. 
E)  This contract is a legal contract enforceable against Ted.

Question 16

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

Accepted Answer

The answer of Indicate under what circumstances parents are responsible...

Question 17

Neither party is bound by a contract with an infant.

Accepted Answer

A) True 
 B)False

Question 18

"If an infant can't be sued in contract because of his age,the adult can often sue in tort instead,thus avoiding the protection given to the infant in a contract law." Discuss the accuracy of this statement.

Accepted Answer

The answer of "If an infant can't be sued in...

Question 19

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

Accepted Answer

The answer of When at war,what happens to contracts with...

Question 20

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?

Accepted Answer

A)  In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract. 
B)  If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract. 
C)  The court always just presumes an intention to be legally bound, so this is never an issue in a contract case. 
D)  The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption. 
E)  Family members can never have the intent to be legally bound in their agreements because family matters are private matters.

Exam 7: The Elements of a Contract capacity, Legality, and Intention

Which of the following is incorrect with respect to the law of incapacity?

What does the decision in Bayview Credit Union Ltd.v.Daigle illustrate?

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

When parents have led a merchant to believe that their infant child is acting as their agent,the parents are liable.

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

When a third party says,"I'll see that you get paid," there is an assumption of a primary obligation,and the promise is a(n) ________.

Which of the following is incorrect with respect to the law of infants and their parents?

Which of the following is true 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.

"A person's intention to be bound by contracts is presumed." Discuss the accuracy of this statement.

Indicate what types of contracts are binding on infants.

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

A contract that has been partially performed will be enforceable even though it is not in writing as required under the Statute of Frauds.

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

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

Neither party is bound by a contract with an infant.

"If an infant can't be sued in contract because of his age,the adult can often sue in tort instead,thus avoiding the protection given to the infant in a contract law." Discuss the accuracy of this statement.

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

A necessary element of a contract is that the parties must have the intention to be legally bound.Which of the following is true with regard to this element of a contract?