Question 1

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 2

Clem had wanted a piano for a long time. Although he was a minor, his mom gave him $300 and he took this with some savings and made a $500 down payment on a $3000 piano. The balance was to be paid over a three-year period. His mom signed the contract as a guarantor. Clem made the first three payments, but he damaged the piano trying to move it from the living room to his upstairs bedroom. He didn't have the money to get it fixed. He quit playing, lost interest, and quit making his payments. On these facts, which of the following is false?

Accepted Answer

A)   Although the contract is unenforceable against Clem, if he affirms the contract after he reaches the age of majority, the seller will be able to sue him for breach of contract.
B)   Unless Clem affirms the contract or partly performs the contract after he reaches the age of majority, the seller cannot get any compensation from him.
C)   If Clem's mother guaranteed the deal, she would be liable on her guarantee even if the contract were unenforceable against Clem.
D)   Because Clem is an infant, he cannot sue the seller, even if the piano is defective.
E)   Clem's mother will be liable on the guarantee only if it is in writing.F) None of the above
G) B) and C)

Question 3

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

Accepted Answer

Here students should outline the instanc...

Question 4

Jones entered into a contract for the sale of his barber shop to Harry Cutter. One of the terms of the contract was that Jones would never open up a similar business within 50 kilometres of the location of the barber shop being sold. About two weeks after the sale, Cutter noticed a new barber shop opening across the street with brand-new facilities and equipment. When he learned that the owner of the new shop was the very Jones 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)   If the 50 kilometres is determined to be reasonable, this restriction will be valid and Harry Cutter will succeed.
B)   Any such attempt to restrict competition is illegal and, no matter how reasonable the terms are, the provision will be void.
C)   The time period of the restrictive covenant is too broad and would be found to be void or non-enforceable.
D)   The whole contract for the sale of the business is void because of the illegal term, and therefore Harry will be able to force Jones to take his barber shop back and return the purchase price.
E)   These terms are enforceable no matter how unreasonable because they are part of the bargain struck.F) A) and B)
G) C) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

All contracts that have the effect of restricting competition are void.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following are in no way incapacitated when entering into contracts?

Accepted Answer

A)   Mentally disabled
B)   Women
C)   Children
D)   Status Indians
E)   Trade unionsF) A) and B)
G) B) and D)

Question 8

Negotiations between Dave and Mary resulted in the following agreement: Dave would sell his property to Mary for the sum of $150,000 with the closing date to be August 10. When the two completed their discussion, Mary paid Dave $5000 as part payment of the purchase price and received a receipt. The contract was not in writing. On August 10, Mary tendered the remainder of the money, but Dave refused to convey the property. Mary sued Dave for breach of contract. On these facts, which of the following is true? (Assume all facts can be proved.)

Accepted Answer

A)   Mary cannot enforce this contract because the contract was not in writing.
B)   Mary cannot enforce this contract because the contract was not evidenced in writing.
C)   Mary can enforce this contract if the receipt specified the part payment was for the property in question.
D)   Mary cannot enforce the agreement because all of the consideration was not paid.
E)   Mary cannot enforce the agreement because she had not paid Dave all of the money.F) A) and B)
G) All of the above

Question 9

An adult can't sue an infant in tort to get around the infant's contractual incapacity.

Accepted Answer

A) True 
 B)False

Question 10

Joe entered into a contract to sell his house to Sam for $400,000. Explain under what circumstances this contract would be binding on the parties even where it was not in writing or evidenced by writing.

Accepted Answer

Where there has been part perf...

Question 11

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 12

Which of the following statements is correct with respect to the legality of contracts?

Accepted Answer

A)   A judge can refuse to enforce a contract that involves conduct that is not prohibited by law but which court precedent considers morally unacceptable.
B)   When two merchants agree not to sell a certain product below an agreed price and the product is not readily available from others sources, this is legally permissible as long as they intend their promises to be legally binding.
C)   Insurance taken out on property you don't own is valid as long as the insurance company has been informed that you have no interest in the property.
D)   An agreement that one merchant won't open up a business in competition with another is enforceable as long as there is consideration on both sides.
E)   An agreement where one party agrees to pay another to sue a third for tort is legally enforceable.F) A) and E)
G) A) and D)

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 agreements that restrict competition or that are a restraint of trade and how they are treated in contract law.

Accepted Answer

The operation of the free market is at t...

Question 15

Which of the following is correct with respect to the law of intention?

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)   In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary.
C)   In domestic agreements, there is a presumption that there is no intention to be legally bound.
D)   Where intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test.
E)   Since domestic relationships are serious, the parties to such relationships are always bound by their contracts with each other.F) C) and D)
G) All of the above

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A signature equivalent for electronic documents might be a password or some other form of encryption.

Accepted Answer

A) True 
 B)False

Question 18

When there is a(n)  ________ (a right to seize property) , or when there is a right to set off a debt against the obligations created by the contract, the parties themselves may be able to enforce the contract without the help of the courts.

Accepted Answer

A)   provision
B)   indemnity
C)   lien
D)   obligation
E)   court orderF) A) and C)
G) A) and D)

Question 19

"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

Although an infant is responsi...

Question 20

Once infants become adults, they are liable for any contract they made while they were infants.

Accepted Answer

A) True 
 B)False

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

Correct Answer
verified

"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.

Correct Answer
verified
Although an infant is responsi...
View Answer

Once infants become adults, they are liable for any contract they made while they were infants.

Correct Answer
verified

When there is a(n) ________ (a right to seize property) , or when there is a right to set off a debt against the obligations created by the contract, the parties themselves may be able to enforce the contract without the help of the courts.

Correct Answer
verified

Which of the following statements is correct with respect to the legality of contracts?

Correct Answer
verified

Which of the following are in no way incapacitated when entering into contracts?

Correct Answer
verified

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

Correct Answer
verified

A signature equivalent for electronic documents might be a password or some other form of encryption.

Correct Answer
verified

Joe entered into a contract to sell his house to Sam for $400,000. Explain under what circumstances this contract would be binding on the parties even where it was not in writing or evidenced by writing.

Correct Answer
verified
Where there has been part perf...
View Answer

Correct Answer
verified

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

Correct Answer
verified

Discuss agreements that restrict competition or that are a restraint of trade and how they are treated in contract law.

Correct Answer
verified
The operation of the free market is at t...
View Answer

All contracts that have the effect of restricting competition are void.

Correct Answer
verified

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

Correct Answer
verified
Here students should outline the instanc...
View Answer

An adult can't sue an infant in tort to get around the infant's contractual incapacity.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
Joe would either claim that the contract...
View Answer

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

Correct Answer
verified

Which of the following is correct with respect to the law of intention?

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

"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.

Correct AnswerverifiedAlthough an infant is responsi...View AnswerShow Answer

Once infants become adults, they are liable for any contract they made while they were infants.

Correct AnswerverifiedShow Answer

When there is a(n) ________ (a right to seize property) , or when there is a right to set off a debt against the obligations created by the contract, the parties themselves may be able to enforce the contract without the help of the courts.

Correct AnswerverifiedShow Answer

Which of the following statements is correct with respect to the legality of contracts?

Correct AnswerverifiedShow Answer

Which of the following are in no way incapacitated when entering into contracts?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A signature equivalent for electronic documents might be a password or some other form of encryption.

Correct AnswerverifiedShow Answer

Joe entered into a contract to sell his house to Sam for $400,000. Explain under what circumstances this contract would be binding on the parties even where it was not in writing or evidenced by writing.

Correct AnswerverifiedWhere there has been part perf...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Discuss agreements that restrict competition or that are a restraint of trade and how they are treated in contract law.

Correct AnswerverifiedThe operation of the free market is at t...View AnswerShow Answer

All contracts that have the effect of restricting competition are void.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedHere students should outline the instanc...View AnswerShow Answer

An adult can't sue an infant in tort to get around the infant's contractual incapacity.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJoe would either claim that the contract...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is correct with respect to the law of intention?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Although an infant is responsi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Where there has been part perf...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The operation of the free market is at t...
View Answer

Correct Answer
verified

Correct Answer
verified
Here students should outline the instanc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Joe would either claim that the contract...
View Answer

Correct Answer
verified

Correct Answer
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