The contract signed by XYZ Ltd.and Charles provided that the company would receive a licence to use the computer program that Charles was creating,that Charles would complete the program by January 15,2012,that Charles would retain copyright,and that Charles would receive $10 000 on completion of his work.Two weeks before the due date,Charles told the president of the company that he was not going to complete on time.The president said,"Don't worry about it; get it done as soon as you can." Charles was 10 days late in completing the work.The delay caused the company to lose money,so it sued Charles for damages.On these facts (which you should assume can be proved),which of the following is false?
A) The company has the right to sue even though it is not a natural person.
B) If this case were heard in the B.C. Supreme Court, the judge would have to follow a precedent on the point set by the B.C. Court of Appeal.
C) Charles could enter his defence and could also enter a counterclaim if he felt he had an action against the company.
D) Charles could use equitable (promissory) estoppel as a defence.
E) The company doesn't have the right to sue because the law would presume that the parties did not intend to be legally bound.

Question

Quizplus · Accepted Answer

This statement is false because the contract between XYZ Ltd. and Charles clearly outlines the terms of their agreement, including the payment of $10,000 upon completion of the work and the granting of a license to use the computer program. Therefore, it is unlikely that the law would presume that the parties did not intend to be legally bound. The company has the right to sue Charles for damages resulting from his breach of contract.

A) is true because a company is a legal entity capable of entering into contracts and being sued.

B) is irrelevant to the facts of the case and cannot be determined from the information given.

C) is true because Charles has the right to defend himself against the company's claims and may also be able to make a counterclaim if he feels he has a legal action against the company.

D) is a possible defence for Charles, but it cannot be determined from the facts given whether he would be successful in using this defence.

The Contract Signed by XYZ Ltd