Filters
Question type
Study Flashcards

The court may hold that a contract is void,voidable,unenforceable,or illegal.Which of the following is true with regard to these terms and the court's use of them?


A) "Void" is the same as "unenforceable."
B) If a contract is held to be void,it is a contract,but for some reason,one party can end it.
C) If a contract is held to be illegal,the plaintiff will get some help,because the court will try to put the parties back to their original position.
D) If a contract is unenforceable,it means it doesn't exist.
E) If a contract is held to be void,it never was a contract.

F) A) and D)
G) A) and C)

Correct Answer

verifed

verified

One afternoon while Mr.Reston was going home on the bus,his neighbour,Mr.Outovit,offered to sell Reston his car for $4000,a bit below the market value.Reston said,"You might change your mind on that.Better not be too hasty with your offers." Outovit answered,"I want to sell it quickly," and wrote on the back of an envelope,"I hereby offer my neighbour,Reston,my 2011 Chevrolet for $4000 cash." He signed his name.Reston wrote,"I accept." The next day,Reston went to his neighbour's house to pay the money and get the car.He learned that Outovit was in hospital,unconscious from a reaction to medicines given to him the day before.If Outovit (or his legal representative) refuses to honour the contract on the basis of mental incapacity,which of the following is true?


A) If Reston can show the written contract,Outovit has no argument and will be bound to honour the contract.
B) Outovit need only prove that he didn't understand the nature and quality of his act to void the contract.
C) Outovit won't be bound by the contract because there hadn't yet been the payment for,or delivery of,the car.
D) If it is established that Reston didn't know Outovit was incapacitated at the time of contract and that the deal was fair,Outovit will be bound by the contract even if he didn't understand the nature and quality of his act.
E) To get out of a contract on the basis of insanity you have to be institutionalized.

F) A) and E)
G) A) and C)

Correct Answer

verifed

verified

Which one of the following is an example of a contract that is binding on an infant in jurisdictions other than British Columbia?


A) A contract to purchase a new stereo
B) A contract for a camera
C) A contract for baseball tickets
D) A contract for rent
E) A contract for professional hairstyling

F) A) and E)
G) B) and E)

Correct Answer

verifed

verified

Even in commercial relationships,if the parties make it absolutely clear that they don't intend the arrangement to be legally binding on them,the agreement will not be enforceable in court.

A) True
B) False

Correct Answer

verifed

verified

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


A) Mentally disabled
B) Women
C) Children
D) Status Indians
E) Trade unions

F) C) and D)
G) A) and B)

Correct Answer

verifed

verified

In jurisdictions other than British Columbia,which of the following is correct with respect to the law of infants?


A) An adult cannot enforce any contract against an infant while the infant is still under age unless the contract is made binding by another statute (e.g.,government student loans) .
B) An infant is bound by his contract for necessaries and beneficial contracts of service.
C) An infant is not bound to repay his government student loan.
D) A contract with an infant is "absolutely void" except those contracts for necessaries and beneficial contracts of service.
E) If the adult did not know he was dealing with an infant,the adult is not bound by the contract.

F) A) and B)
G) A) and E)

Correct Answer

verifed

verified

Contracts involving domestic relationships are presumed to be binding.

A) True
B) False

Correct Answer

verifed

verified

What is the term used when a person cannot understand the nature or consequences of his or her actions?

Correct Answer

verifed

verified

All provincial and territorial governments have passed legislation to facilitate e-commerce by clarifying the status of electronic documents,contracts and signatures.

A) True
B) False

Correct Answer

verifed

verified

Which of the following is false 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) An intention to be legally bound is a necessary element of a contract; without it there is no 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 no intent to be legally bound in social situations.
D) Although the court makes presumptions about the intention of parties to be bound,the presumption may be rebutted by evidence to the contrary.
E) Parties may expressly state their intention to be legally bound,in which case the court need not rely on presumptions.

F) All of the above
G) A) and C)

Correct Answer

verifed

verified

Explain the legal position of an infant who enters into a contract with an adult.

Correct Answer

verifed

verified

This varies with among provinces.In most...

View Answer

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

A) True
B) False

Correct Answer

verifed

verified

Which of the following attempts to form a contract would the court declare to be void?


A) A contract in which one of the parties was an infant at the time the agreement was formed
B) An oral agreement for the sale of land
C) A written promise to guarantee the debt of another person
D) An oral agreement for a lease of land for two years
E) A promise by one person to pay another to defame a third

F) A) and E)
G) D) and E)

Correct Answer

verifed

verified

An insane person can escape a contract on the basis of incapacity only if the other person knew or ought to have known of the insanity.

A) True
B) False

Correct Answer

verifed

verified

Mr.Buyer,the plaintiff in the action,is attempting to enforce a contract in which the defendant,Mr.Seller agreed to sell to Buyer his property,Blackacre,for $100,000.Which of the following,by itself,would be sufficient to allow Mr.Seller to get out of the contract?


A) The $100,000 was not enough,so was not fair.
B) At the time of the contract,unknown to Mr.Buyer,Mr.Seller did not understand the quality and nature of this act because of mental incapacity.
C) Although there was a letter from Mr.Seller referring to its essential terms,the contract itself was not in writing.
D) Although both parties agreed to this,there had not actually been any money paid on the contract,not even a deposit or a down payment.
E) The parties clearly stated that they did not want the agreement to be legally binding.

F) B) and C)
G) A) and C)

Correct Answer

verifed

verified

Which of the following best describes an illegal contract?


A) A contract that is illegal at the time it is formed
B) A contract that is illegal in the way in which it is performed
C) A contract that has been breached by one of the parties
D) A contract that lacks consensus,consideration,capacity,and intention
E) A contract that results in civil litigation

F) A) and E)
G) D) and E)

Correct Answer

verifed

verified

Joe was in a bar and saw his friend Sam.Sam had had a considerable amount to drink.Sam offered to sell Joe his Porsche automobile for only $15,000.Joe made sure to have Sam sign a written agreement to that effect.The next day,Joe went to pick up the car,but Sam didn't remember anything about it.Even when Joe showed him the written agreement signed by him,Sam refused to deliver the car.Joe sued.Which of the following correctly states the legal position of the parties?


A) If Joe can show that there was no indication that Sam was drunk,even though Sam was completely incapacitated,he will be required to go through with the deal.
B) Sam just has to show he was legally intoxicated,and he will not be bound.
C) As long as Joe can produce the agreement in writing,there is nothing Sam can do to get out of the deal.Once Sam has signed the document,he is responsible for its contents.
D) Sam will not have to go through with the deal because no money has yet changed hands.
E) Being drunk is no excuse and the contract is binding.

F) A) and B)
G) D) and E)

Correct Answer

verifed

verified

Sam agreed to sell his house to Joe for $400,000,and although the agreement was not in writing,Joe gave Sam $25,000 as a deposit.Sam gave Joe a receipt for the $25,000,indicating that it had been received but not stating for what purpose.In the absence of any other writing,is this contract enforceable? Explain.

Correct Answer

verifed

verified

This depends on the jurisdiction.In most...

View Answer

Neither party is bound by a contract with an infant.

A) True
B) False

Correct Answer

verifed

verified

Describe an "executed contract" and provide an example.

Correct Answer

verifed

verified

A fully performed contract,or ...

View Answer

Showing 21 - 40 of 162

Related Exams

Exam 1

Managing Your Legal Affairs

127 Questions

Exam 2

Introduction to the Legal System

162 Questions

Exam 3

The Resolution of Disputes: The Courts and Alternatives to Litigation

221 Questions

Exam 4

Intentional Torts and Torts Impacting Business

152 Questions

Exam 5

Negligence,Professional Liability,and Insurance

156 Questions

Exam 6

The Elements of a Contract: Consensus and Consideration

184 Questions

Exam 8

Factors Affecting the Contractual Relationship

182 Questions

Exam 9

The End of the Contractual Relationship

173 Questions

Exam 10

Agency and Partnership

214 Questions

Exam 11

Corporations

150 Questions

Exam 12

Employment

164 Questions

Exam 13

Intellectual Property

119 Questions

Exam 14

Real and Personal Property and Protection of the Environment

131 Questions

Exam 15

Priority of Creditors

111 Questions

Exam 16

Sales and Consumer Protection

153 Questions

Show Answer