Question 1

A minor may repudiate all contracts entered into by her with the EXCEPTION of
A)contracts for necessaries.
B)contracts entered into under duress.
C)contracts that are beneficial to the minor.
D)contracts pertaining to real estate.
E)contracts entered into with relatives.

Accepted Answer

Contracts for necessaries are exceptions to a minor's right to repudiate a contract because they are for items or services necessary for the minor's health or welfare. It is considered unfair to allow a minor to benefit from such contracts and then be able to avoid paying for them. The other options are not exceptions to a minor's right to repudiate a contract.

Question 2

A year ago,James sold a motor bike to Jim,his best friend.At the time that the bike was sold,Jim was a minor.Jim is still making payments to James.Jim will be attaining the age of majority in a few months' time.How should James protect himself?
A)Have Jim transfer the bike to a third party.
B)Get a witness to witness the next payment that Jim makes.
C)Enter into another agreement with Jim.
D)Get Jim to ratify the agreement.
E)Provide Jim with a statement of account.

Accepted Answer

To protect himself, James should get Jim to ratify the agreement once Jim attains the age of majority. Ratification would make the previously voidable contract (due to Jim's minority) fully enforceable and legally binding.

Question 3

Although there has been an offer and acceptance and consideration,and the parties intended to enter into a contract,a court will set aside a contract as void because of
A)the social standing of one of the parties.
B)the lack of capacity of one of the parties.
C)the wealth of one of the parties.
D)the signature on the contract being unclear.
E)the impecuniosity of one of the parties.

Accepted Answer

The lack of capacity of one of the parties is a valid legal reason for a court to declare a contract void. This can include situations where a party is a minor, mentally incapacitated, or otherwise unable to understand the nature and consequences of the contract.

Question 4

On January 1,Jack,a minor,orders some computer software programs from a computer company.Jack needs the programs for school.The software programs cost $4000.00.On January 5,just before the computer company sends the software programs out,Jack has a change of heart.So he calls the computer company and tells them that he no longer wants the programs.In this situation
A)Jack cannot cancel the contract,because there has been offer and acceptance.
B)Jack cannot cancel the contract,because the programs are necessaries.
C)Jack cannot cancel the contract,because it is a beneficial contract of service.
D)Jack can cancel the contract,because the software programs are non-necessaries and he has not taken delivery of them.
E)Jack can cancel the contract,because minors do not have to pay large sums of money.

Accepted Answer

Jack can cancel the contract because he has not taken delivery of the non-necessary software programs. Minors are generally not bound to contracts they enter into, but in this case, the cancellation is possible due to the fact that the goods were not yet delivered.

Question 5

Jack is 13 years old and a young musical legend.Jack enters into negotiations with a studio pertaining to a starring role in a series of movies.Prior to the negotiations,and as a condition to entering into the negotiations,Jack and the studios enter into an agreement under which the studio agrees to buy Jack a limousine for his personal use.The studio buys the limousine.A few months later Jack repudiates the contract and his chauffeur has an accident with the limousine.Which of the following is TRUE?
A)Jack may sell the limousine and then pay the proceeds to the studio.
B)Jack will have to return the limousine in the state it is in.
C)The studio can sue Jack for breach of contract.
D)Jack may keep the limousine but has to pay for it.
E)Jack will have to repair the limousine and then return it.

Accepted Answer

Jack, being a minor, can disaffirm the contract and is typically required to return the item in its current state, not necessarily in its original condition.

Question 6

A minor is
A)a person who is small in stature.
B)a person who enters into an agreement to work in a coal mine.
C)a person who performs minor tasks pursuant to a contract.
D)a person who is small in stature but is able to enter into certain contract.
E)a person who has not attained the age of majority.

Accepted Answer

A minor is a person who has not attained the age of majority. In most countries, the age of majority is 18 years, and anyone below this age is considered a minor. Minors have some legal rights and protections, but they are generally not allowed to enter into contracts without the consent of their parents or guardians.

Question 7

A minor's immunity from liability
A)is limited to contracts.
B)is determined by statute.
C)is dependent on the age of the minor.
D)extends to contracts and torts.
E)extends to purchases and sale of real estate.

Accepted Answer

The answer of A minor's immunity from liability
A)is limited to...

Question 8

Mary is 13 years old,and she enters into an agreement with a modelling agent pursuant to which the agent agrees to represent her.Which of the following is NOT true?
A)The agent can only enforce a contract regarding necessaries against the minor.
B)A minor may repudiate contracts for non-necessaries because he or she is not bound by them.
C)The contract is enforceable against the agent.
D)The contract is not enforceable by Mary against the agent.
E)The agent cannot enforce the contract against Mary.

Accepted Answer

A minor can enforce a contract against the other party, but the other party cannot enforce it against the minor.

Question 9

When Mary was 17 years old,she was asked to become a partner in an clothing design shop because she created brilliant clothing designs.Mary liked the idea at the time and signed a partnership agreement/contract.However,after working for a month,she decided that it was not something she wanted to do.After Mary turned 18,she decided to stop being a partner in the clothing shop.In this situation
A)Mary can repudiate the partnership contract because it is not a beneficial contract of service.
B)so long as Mary does not affirm or ratify the partnership contract,she can repudiate it.
C)there is nothing that Mary can do because she is now 18 years of age.
D)there is nothing that Mary can do because she is bound by a beneficial contract of service.
E)there is nothing Mary can do because she signed the partnership agreement/contract.

Accepted Answer

Since Mary has not affirmed or ratified the partnership contract after turning 18, she can repudiate it. This is because she was a minor at the time she signed the contract and thus lacked capacity to enter into a binding contract. However, if she had affirmed or ratified the contract after turning 18, it would have become binding on her.

Question 10

Whenever a contract involves or requires the commission of a tort,the contract is usually illegal.The torts that typically arise in an agreement include all of the following EXCEPT
A)libel and slander.
B)trespass.
C)deceit (fraud).
D)negligence.
E)inducing breach of contract.

Accepted Answer

Negligence, unlike the other options, is not typically intentional and does not usually involve the commission of a tort as part of an agreement. The other options (libel and slander, trespass, deceit (fraud), and inducing breach of contract) are intentional torts that can be part of an illegal agreement.

Question 11

Native Canadians living on reserves are considered to be ________ of the Crown.
A)wards
B)children
C)beneficiaries
D)friends
E)relatives

Accepted Answer

Native Canadians living on reserves are considered to be wards of the Crown, which reflects a legal and fiduciary relationship between Indigenous peoples and the Canadian government.

Question 12

Minors will be liable for contracts
A)if the contracts concern necessaries.
B)if the minor completes a declaration stating that he or she has read and understood the terms of the contract.
C)if they signed the contract.
D)if the parent of the minor was present at the time the minor was signing the contract.
E)if the minor is deemed to be of well-above-average intelligence.

Accepted Answer

Minors will only be liable for contracts if they concern necessaries such as food, clothing, shelter, or medical care.

Question 13

Jack and Jill agree to tell Michael that they will beat him up if he does not give them his valuable coin collection.According to the common law,this agreement between Jack and Jill is
A)unenforceable.
B)illegal.
C)voidable.
D)ineffective.
E)void.

Accepted Answer

This agreement is illegal as it involves the use of duress and coercion to obtain property, which is not permissible under the law.

Question 14

In order for a person under mental incapacity to avoid a contract made while that person was incapacitated,the incapacitated person must show
A)that neither party knew what was happening.
B)that there was no intention to enter into a contract.
C)that the contract was unfair.
D)that the other party should have recognized the incapacity.
E)all of the above

Accepted Answer

In order for a person under mental incapacity to avoid a contract made while that person was incapacitated, they must show that the other party should have recognized their incapacity. This is because the other party has a duty to deal fairly with a person who is known or should be known to be mentally incapacitated. The other options (A, B, and C) do not necessarily apply in cases of mental incapacity.

Question 15

When a minor reaches the age of majority,a contract that was entered into earlier and was unenforceable remains unenforceable unless
A)the parties execute an affidavit.
B)it was ratified after the person attains the age of majority.
C)it is repudiated after the person attains the age of majority.
D)the subject matter is a non-necessary item.
E)the subject matter is stolen before the person attains the age of majority.

Accepted Answer

A contract that was entered into by a minor and was unenforceable remains unenforceable unless it is ratified after the person attains the age of majority. Ratification is the act of the person, upon reaching the age of majority, affirming the contract that was previously entered into when they were a minor.

Question 16

Upon attaining the age of majority,a minor may be bound by two kinds of voidable contracts,namely
A)contracts that create an interest of a continuous and permanent nature,and contracts that are ratified by the minor.
B)contracts pertaining to real estate,and contracts pertaining to intellectual property.
C)contracts of service and contracts of employment
D)contracts of purchase,and contracts of sale.
E)contracts that concern necessaries,and contracts that concern non-necessaries.

Accepted Answer

Contracts that create an interest of a continuous and permanent nature, such as contracts for real estate or long-term leases, are binding on minors even if they are not ratified. On the other hand, contracts that are not of a continuous and permanent nature, such as contracts for goods or services, are voidable by the minor until they are ratified after attaining the age of majority.

Question 17

Capacity to contract means
A)the ability to make an offer or accept an offer.
B)the competence to enter into a legally binding contract.
C)the ability to pay damages in the event of a breach of contract.
D)the ability to make a promise.
E)the ability to comprehend the terms of a contract.

Accepted Answer

Capacity to contract refers to the legal competence of a person to enter into a binding contract, meaning they have the mental ability and legal standing to understand and agree to the contract terms.

Question 18

Michael is an Aboriginal person living on a reserve.Which of the following is TRUE?
A)Michael can use reserve land as security for a loan.
B)Michael may manufacture and sell goods to outsiders.
C)If Michael moves off the reserve,his capacity to contract would not change.
D)Michael has the same capacity to contract as other Canadians.
E)Michael's legal position to sell produce would not vary by province.

Accepted Answer

Aboriginal people living on reserves may manufacture and sell goods to outsiders, but their capacity to contract and use reserve land as security for a loan is restricted by the Indian Act.

Question 19

Which of the following is NOT true?
A)A corporation has no physical existence.
B)A corporation is a legal fiction.
C)A corporation is a creature of law.
D)A corporation does not have the attributes of a natural person.
E)A corporation has the same attributes as a natural person.

Accepted Answer

The answer of Which of the following is NOT true?
A)A...

Question 20

Happy Carrier Company (HCC)is in the business of shipping goods.Yesterday HCC agreed with John Smith to ship Mr.Smith's furniture from Toronto to Ottawa.Mr.Smith's furniture is worth $100 000.00.Just before loading the furniture onto its truck,HCC's driver had Mr.Smith sign a contract that contained a term that limited HCC's liability for destruction or damage to the furniture to $50.00 if it resulted from the negligence of HCC or its employees.On the way to Ottawa,HCC's driver lost control of the truck and Mr.Smith's furniture was destroyed by fire after the truck crashed into a brick wall.In this situation
A)the limitation of liability in the contract is effective only against HCC,but not its employee,so Mr.Smith can sue the employee for the value of his furniture.
B)the limitation of liability in the contract is permitted by law and Mr.Smith will receive only $50.00.
C)Mr.Smith's contract with HCC is illegal by common law,so Mr.Smith will recover the full value of his furniture from HCC.
D)although the contract with HCC is legal,the limitation on liability contained in it is not,so Mr.Smith will recover the full value of his furniture from HCC.
E)the limitation of liability in the contract is not effective,because Mr.Smith did not see it before he signed the contract,so Mr.Smith will recover the full value of his furniture from HCC.

Accepted Answer

The limitation of liability in the contract is permitted by law and Mr.Smith will receive only $50.00.

Quiz 8: Formation of a Contract: Capacity to Contract and Legality of Object

A minor may repudiate all contracts entered into by her with the EXCEPTION of

A year ago,James sold a motor bike to Jim,his best friend.At the time that the bike was sold,Jim was a minor.Jim is still making payments to James.Jim will be attaining the age of majority in a few months' time.How should James protect himself?

Although there has been an offer and acceptance and consideration,and the parties intended to enter into a contract,a court will set aside a contract as void because of

A minor is

A minor's immunity from liability

Mary is 13 years old,and she enters into an agreement with a modelling agent pursuant to which the agent agrees to represent her.Which of the following is NOT true?

Whenever a contract involves or requires the commission of a tort,the contract is usually illegal.The torts that typically arise in an agreement include all of the following EXCEPT

Native Canadians living on reserves are considered to be ________ of the Crown.

Minors will be liable for contracts

Jack and Jill agree to tell Michael that they will beat him up if he does not give them his valuable coin collection.According to the common law,this agreement between Jack and Jill is

In order for a person under mental incapacity to avoid a contract made while that person was incapacitated,the incapacitated person must show

When a minor reaches the age of majority,a contract that was entered into earlier and was unenforceable remains unenforceable unless

Upon attaining the age of majority,a minor may be bound by two kinds of voidable contracts,namely

Capacity to contract means

Michael is an Aboriginal person living on a reserve.Which of the following is TRUE?

Which of the following is NOT true?