Question 1

Which of the following distinguishes a chartered corporation from a statutory corporation?

Accepted Answer

E

Question 2

Constance and Rosemary are in a fiduciary relationship. This fact is relevant to a claim of unfairness during bargaining because

Accepted Answer

In a fiduciary relationship, there is a presumption of undue influence, meaning one party may have taken advantage of their position of trust to influence the other party's decisions.

Question 3

Which of the following is sufficient written evidence to satisfy the Statute of Frauds in most Canadian jurisdictions?

Accepted Answer

In most Canadian jurisdictions, the Statute of Frauds requires a written and signed document to enforce certain types of contracts. All the options provided involve a signed writing that could potentially satisfy this requirement.

Question 4

A fiduciary relationship

Accepted Answer

A fiduciary relationship is not limited to any specific area of law such as corporations or employment, nor is it solely about inequality in bargaining power or necessary to prove undue influence. It is a broader legal concept where one party is obligated to act in the best interest of another.

Question 5

Unincorporated associations

Accepted Answer

Unincorporated associations are not independent legal entities like corporations, but they can be given the capacity to contract through specific legislation.

Question 6

Ariel pays Newton a $17 000 deposit as part of an oral contract for the sale of land. According to the terms of their agreement, Ariel is to pay the balance on the day of the closing, failing which Newton is allowed to keep the deposit. Suppose that the deal never closes. Which of the following is TRUE?

Accepted Answer

The oral contract for the sale of land is generally unenforceable under the Statute of Frauds, which requires such contracts to be in writing. However, Newton can keep the deposit as a form of liquidated damages if Ariel fails to complete the purchase, as per their agreement.

Question 7

Joe is an aboriginal person, born and raised on a native reserve. After reaching the age of majority, Joe decides to move to Calgary to continue his work as an artist. After abandoning the reserve and living in Calgary for several years, Joe is asked to participate in a major art opening. Much of his art depicts life on his reserve. Which of the following is TRUE?

Accepted Answer

Joe, like any other individual, has the capacity to contract and can use his art as security for a credit transaction.

Question 8

Which of the following is most likely an improvident bargain?

Accepted Answer

Granny is assigning all of her assets to a powerful business in exchange for the promise to take care of her grandson in the future. This is an improvident bargain because granny is giving up all of her assets without getting anything in return. The business could easily break its promise to take care of her grandson, and granny would have no recourse.

Question 9

Napolean wanted to borrow money from the Bank of Winnipeg. The bank was not, however, fully convinced that Napolean would be able to repay the debt. It therefore wanted some assurance from Napolean's mother, Josephine, that she would repay the loan if necessary. Which of the following statements is most likely to be TRUE?

Accepted Answer

The bank may satisfy the requirement for a written agreement by combining several documents, even if they do not explicitly refer to each other, as long as they collectively establish the terms of the agreement.

Question 10

When may the defence of non est factum be raised?

Accepted Answer

The defence of non est factum can be raised when there is a fundamental or radical difference between what a person signed and what they believed they were signing, due to a mistake or misrepresentation.

Question 11

Which of the following agreements must be evidenced in writing in order to be enforceable?

Accepted Answer

The answer of Which of the following agreements must be...

Question 12

Economic duress

Accepted Answer

Economic duress occurs when the victim is unable to reasonably resist the pressure exerted, making the contract voidable.

Question 13

Salvatore created a contract with Acme Corp. Although the parties initially performed their obligations without complaint or difficulty, a dispute has now arisen. Acme Corp claims the protection of a force majeure clause. Which of the following statements is most likely to be TRUE?

Accepted Answer

The answer of Salvatore created a contract with Acme Corp....

Question 14

Which of the following examples of a covenant in restraint of trade is most likely to be against public policy?

Accepted Answer

Restricting an entrepreneur from ever setting up a bakery business again is overly broad and likely against public policy as it unreasonably restricts the individual's ability to earn a livelihood.

Question 15

Which of the following have limited capacity to contract for the necessities of life?

Accepted Answer

The answer of Which of the following have limited capacity...

Question 16

A force majeure clause

Accepted Answer

A force majeure clause is designed to address unforeseen events that prevent contract performance, thus overriding what would normally be considered frustration.

Question 17

Shelly hires James to steal her neighbour's dog (because it barks a lot and the owners do nothing about it). Shelley paid James according to the terms of the contract, but James did not follow through with his end of the bargain. Can Shelly get her money back?

Accepted Answer

The contract is illegal because it involves committing a crime (theft), and illegal contracts are unenforceable. Therefore, Shelly cannot recover her money through legal means.

Question 18

Which of the following contracts will be enforced whether or not the purchaser has reached the age of majority?

Accepted Answer

Contracts for necessities (such as groceries) are enforceable regardless of the age of the purchaser.

Question 19

Whether actual pressure has been exerted is

Accepted Answer

Actual pressure is relevant in a claim of undue influence when there is no fiduciary relationship, as undue influence typically involves exploiting a position of power or trust.

Question 20

Tajeash and Faye entered into a contract. Before either party began to perform under that agreement, Tajesh successfully claimed that the contract is void. Which of the following statements is most likely to be TRUE?

Accepted Answer

The contract is void because Tajesh is a minor, and Faye lacked the necessary license to sell shotguns, making the contract illegal and unenforceable.

Quiz 10: Contractual Defects