Question 1

Malkit sold a house to Amanda.The evidence indicates that Amanda owed fiduciary obligations to Malkit both before and after the agreement was signed.Which of the following statements is TRUE?

Accepted Answer

A)  Amanda has an absolute right to have the contract set aside.
B)  The court will presume that Malkit entered into the contract as a result of Amanda's undue influence.
C)  In order to set aside the contract,Malkit must prove that the agreement is unfair to him.
D)  The contract will be set aside unless Amanda proves that she was unaware of her fiduciary obligations.
E)  Malkit is entitled to receive Amanda's performance even though he is not required to perform his obligations under the agreement.F) None of the above
G) A) and B)

Question 2

From the perspective of risk management,what practices should be adopted by businesses transacting in jurisdictions that have a Statute of Frauds?

Accepted Answer

First,risk managers will need to know pr...

Question 3

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

A)  Faye was drunk when the contract was created.
B)  Tajesh is the name of a chartered corporation,and the contract dealt with non-essential goods.
C)  Tajesh is a minor,and Faye sold a shotgun to Tajesh even though Tajesh lacked the necessary licence to purchase a shotgun.
D)  Tajesh,who is 82 years old,sometimes acts unreasonably,and Faye knew that at the time the contract was entered into.
E)  Tajesh is not a citizen of Canada,and the contract was made in this country.F) None of the above
G) B) and D)

Question 4

List three types of contracts that must be evidenced in writing in most jurisdictions.Provide one example of each.

Accepted Answer

(i)Guarantees to assume another person's...

Question 5

The form and content requirements of the Statute of Frauds requires a signature from each of the parties.

Accepted Answer

A) True 
 B)False

Question 6

Ling is about to enter into a contract that will be carried out over the next year and a half.Is it safe for her to assume that the contract will not be enforced if it is not evidenced in writing in a jurisdiction where the Statute of Frauds applies?

Accepted Answer

This is not a safe assumption for Ling t...

Question 7

Which of the following contracts may be set aside for mistake or frustration?

Accepted Answer

A)  Pam sells a computer for cash to a person she mistakenly thought she had known in high school.
B)  Pam says nothing about the quality and history of a painting that she sells to Dave,despite knowing that he incorrectly believes the painting was worth more than its purchase price.
C)  Pam enters into a contract to sell a colt to Dave,but Dave does not know that Pam has already sold the same colt to Donna.
D)  Pam rents a cottage to Dave for a summer for $5000,and Pam later learns that because of winter storms,it will unexpectedly cost her $30 000 to repair the cottage so that it meets the needs of the rental contract.
E)  Two parties enter into an agreement to purchase a container of goods,but completely innocently unknown to either party is the fact that the container of goods was destroyed by fire the previous night.F) A) and E)
G) C) and E)

Question 8

Fred's Appliances hired a new sales clerk,Jill,to engage customers and handle the store's paperwork.Jill was hired for her sincere smile and personality,but struggles with the paperwork.One day,Jackson decides to purchase a washer and dryer from Fred's Appliances on a 3-year payment plan.Jill is filling out the contract and accidentally places Jackson's first name in the 'Last Name' column and vice-versa.However,the other information,including his contact information,is added correctly.After 6 months,Jackson stops making payments.When the store contacts him,Jackson claims that because his name was recorded incorrectly on the contract,the contract is defective.Which statement is true?

Accepted Answer

A)  The contract is defective because this mistake negates the existence of an agreement between the parties.
B)  The contract is not defective because the mistake made was not material.
C)  The contract is not defective because the mistake made was material.
D)  The contact is defective because the mistake does not create consensus ad idem,the meeting of the minds.
E)  The contract is defective and the store must return the payments made for six months.F) B) and D)
G) B) and C)

Question 9

Unconscionable transactions can be characterized as one-sided transactions obtained by unfair use of power.

Accepted Answer

A) True 
 B)False

Question 10

Jane is interested in purchasing a condominium property from Full House Real-Estate Group.She has just recently graduated college,so she does not have a credit record built.Knowing this,she goes to Version Bank with her wealthy cousin Ted,who previously agreed to assist her in buying a house after she finished school.Which statement is true?

Accepted Answer

A)  Ted can indemnify the bank loan as an unconditional promise to pay only when Jane defaults on her payments.
B)  Ted can guarantee the bank loan as an unconditional promise to pay only when Jane defaults on her payments.
C)  Ted can guarantee the bank loan as a conditional promise to pay only when Jane defaults on her payments.
D)  Ted can indemnify the bank loan as a conditional promise to pay only when Jane's obligations become due.
E)  Ted can indemnify the bank loan,but the indemnification is only enforceable if the indemnity is signed under a notary public seal according to the Indemnification Acknowledgments Act.F) A) and B)
G) A) and C)

Question 11

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

A)  No.The contract is defective because it was not in writing.
B)  No.The contract is defective because it is illegal.
C)  No.The contract is defective because it is a restraint on trade.
D)  Yes.The parties will be returned to their pre-contractual position.
E)  Yes.The lawsuit can be brought in small claims court.F) None of the above
G) A) and D)

Question 12

The Statute of Frauds eliminates the writing requirements of the common law.

Accepted Answer

A) True 
 B)False

Question 13

A fiduciary relationship

Accepted Answer

A)  is exclusive to the law of corporations.
B)  is exclusive to the law of employment.
C)  exists whenever there is an inequality in the bargaining power of contracting parties.
D)  must be established in order to prove undue influence.
E)  exists when one party is in a position of dominance over another,for example a trustee and a beneficiary,a lawyer and a client,or a doctor and a patient.F) A) and B)
G) B) and D)

Question 14

Which of the following groups does not have contractual capacity?

Accepted Answer

A)  people who have had one or two glasses of wine or two beers but are not really intoxicated but only slightly impaired
B)  corporations
C)  people under the age of 25
D)  adults who have been declared mentally incompetent by the courts and thus lack mental capacity
E)  people over 80 years of ageF) B) and D)
G) A) and C)

Question 15

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

Accepted Answer

A)  a signed IOU written on a napkin
B)  an unsigned letter confirming a severance arrangement
C)  a notation on a cheque indicating what was purchased without any signatures
D)  an unsigned standard form agreement
E)  a document written in a person's handwriting making a promise but not signed by that personF) A) and D)
G) C) and D)

Question 16

Raja set up a website selling T-shirts decorated with original artwork.The website was marketed under a name very similar to a well-known professional basketball team.Raja had never heard of the team,nor had he meant to fool anyone or to infringe anyone's trademark.One day,Liz went to Raja's site and bought a number of T-shirts with her credit card.Thinking that she was getting fan apparel from her favourite ball team,Liz was quite surprised and disappointed when she saw the merchandise that she received in the mail.What should she claim in order to get her money back?

Accepted Answer

A)  innocent mistake
B)  non est factum
C)  frustration
D)  undue influence
E)  duressF) A) and B)
G) A) and E)

Question 17

Paula is mentally disabled.Which of the following is true with respect to her ability to enter into contracts?

Accepted Answer

A)  Paula can enter into contracts for the necessities of life and into beneficial employment contracts.
B)  Any contract entered into by Paula is voidable at her option.
C)  Any contract entered into by Paula is void .
D)  Any contract entered into by Paula is voidable if she repudiates it within 30 days of signing it.
E)  Only contracts which are illegal are voidable by Paula.F) A) and E)
G) C) and E)

Question 18

Rosa immigrated to Canada as a teenager.She worked her whole life to support her family and never received a formal education.While her spoken English is good,her ability to read English is limited.An elderly woman now,Rosa lives in a care facility.A representative of the facility presented her with several pieces of paper to sign.He said that they were simply standard forms that every resident had to sign.She took the forms and returned them signed the following week.Later,she mentioned to her son,Paulo that she had signed some forms,but had been too ashamed to admit that she could not read them.The forms required Rosa to give permission to the facility,evidenced by her signature,to make automatic withdrawals from Rosa's bank accounts.Rosa is not comfortable with this.Will Rosa be bound to her signature? Why? Describe the defence she is most likely to raise and explain whether it is likely to succeed.

Accepted Answer

The general rule is that,absent fraud or...

Question 19

How do courts regard restrictive covenants?

Accepted Answer

A)  Courts will assume that unless there was unfairness during the bargaining process,restrictive covenants should be upheld because the parties have freedom to contract.
B)  Courts will find all restrictive covenants to be against public policy.
C)  Courts will presume restrictive covenants to be against public policy unless the party seeking to enforce the covenant demonstrates that the restriction is reasonable.
D)  Courts will presume restrictive covenants to be reasonable unless the party seeking to avoid the covenant demonstrates that the restriction is against public policy.
E)  Courts will rewrite all restrictive covenants to make them reasonable and therefore enforceable.F) B) and E)
G) A) and E)

Question 20

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

Accepted Answer

A)  minors and people who have been declared mentally incompetent by the courts
B)  Aboriginals and the elderly
C)  public authorities and Indian bands
D)  corporations and alcoholics
E)  minorsF) A) and E)
G) A) and D)

Exam 10: Contractual Defects

Correct Answer
verified

Malkit sold a house to Amanda.The evidence indicates that Amanda owed fiduciary obligations to Malkit both before and after the agreement was signed.Which of the following statements is TRUE?

Correct Answer
verified

From the perspective of risk management,what practices should be adopted by businesses transacting in jurisdictions that have a Statute of Frauds?

Correct Answer
verified
First,risk managers will need to know pr...
View Answer

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

Correct Answer
verified

How do courts regard restrictive covenants?

Correct Answer
verified

Which of the following contracts may be set aside for mistake or frustration?

Correct Answer
verified

Ling is about to enter into a contract that will be carried out over the next year and a half.Is it safe for her to assume that the contract will not be enforced if it is not evidenced in writing in a jurisdiction where the Statute of Frauds applies?

Correct Answer
verified
This is not a safe assumption for Ling t...
View Answer

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?

Correct Answer
verified

List three types of contracts that must be evidenced in writing in most jurisdictions.Provide one example of each.

Correct Answer
verified
(i)Guarantees to assume another person's...
View Answer

The Statute of Frauds eliminates the writing requirements of the common law.

Correct Answer
verified

Correct Answer
verified
The general rule is that,absent fraud or...
View Answer

Which of the following groups does not have contractual capacity?

Correct Answer
verified

Correct Answer
verified

Unconscionable transactions can be characterized as one-sided transactions obtained by unfair use of power.

Correct Answer
verified

Correct Answer
verified

Paula is mentally disabled.Which of the following is true with respect to her ability to enter into contracts?

Correct Answer
verified

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

Correct Answer
Answered by ExamLex AI

A fiduciary relationship

Correct Answer
verified

The form and content requirements of the Statute of Frauds requires a signature from each of the parties.

Correct Answer
verified

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?

Correct Answer
verified

Exam 10: Contractual Defects

Correct AnswerverifiedShow Answer

Malkit sold a house to Amanda.The evidence indicates that Amanda owed fiduciary obligations to Malkit both before and after the agreement was signed.Which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

From the perspective of risk management,what practices should be adopted by businesses transacting in jurisdictions that have a Statute of Frauds?

Correct AnswerverifiedFirst,risk managers will need to know pr...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

How do courts regard restrictive covenants?

Correct AnswerverifiedShow Answer

Which of the following contracts may be set aside for mistake or frustration?

Correct AnswerverifiedShow Answer

Ling is about to enter into a contract that will be carried out over the next year and a half.Is it safe for her to assume that the contract will not be enforced if it is not evidenced in writing in a jurisdiction where the Statute of Frauds applies?

Correct AnswerverifiedThis is not a safe assumption for Ling t...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

List three types of contracts that must be evidenced in writing in most jurisdictions.Provide one example of each.

Correct Answerverified(i)Guarantees to assume another person's...View AnswerShow Answer

The Statute of Frauds eliminates the writing requirements of the common law.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe general rule is that,absent fraud or...View AnswerShow Answer

Which of the following groups does not have contractual capacity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unconscionable transactions can be characterized as one-sided transactions obtained by unfair use of power.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Paula is mentally disabled.Which of the following is true with respect to her ability to enter into contracts?

Correct AnswerverifiedShow Answer

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

Correct AnswerAnswered by ExamLex AIShow Answer

A fiduciary relationship

Correct AnswerverifiedShow Answer

The form and content requirements of the Statute of Frauds requires a signature from each of the parties.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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First,risk managers will need to know pr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This is not a safe assumption for Ling t...
View Answer

Correct Answer
verified

Correct Answer
verified
(i)Guarantees to assume another person's...
View Answer

Correct Answer
verified

Correct Answer
verified
The general rule is that,absent fraud or...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI

Correct Answer
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Correct Answer
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Correct Answer
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