Question 1

Advertisers often use exaggerated claims,such as "This is the best little Buick in Canada." What test is used to determine whether such claims become part of the contract or not?

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Question 2

"A verbal contract is every bit as binding as a written one." Discuss the validity of this statement.

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Question 3

Discuss the importance of putting contracts in writing,both from a legal perspective and from a practical business point of view.

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Question 4

Discuss,providing examples,situations in which an agreement would be invalid due to a lack of intention,including any presumptions that arise.

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Question 5

Describe three situations in your jurisdiction where a contract must be evidenced in writing to be enforceable.

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Question 6

"Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

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Question 7

Joe sold Harry his barbershop,but Harry wanted a commitment on Joe's part that he would not open up another barbershop in the area after he got the money.Explain how the parties could include a clause in their agreement,to that end,without it being void as a restraint of trade.

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Question 8

Just what has to be in writing to satisfy the requirements of the Statute of Frauds?

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Question 9

"The purpose of contract law is to give effect to the reasonable expectations of the parties to a contract." Discuss this observation in terms of the five elements that are required for the creation of a legally binding contract.

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Question 10

"Where the Statute of Frauds applies and the requirement of writing is not met in an agreement between two parties,the contract is void." Discuss the validity of this statement.

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Question 11

"A person's intention to be bound by contracts is presumed." Discuss the accuracy of this statement.

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Question 12

Indicate the distinction between a guarantee and an indemnity.

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Question 13

Describe how infants are treated in contract law in Canada.

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Question 14

Sam agreed to sell his house to Joe for $200 000,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.

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Question 15

A husband started a small business and agreed to pay his wife $700 a month for her bookkeeping services.This was primarily a method of income-splitting for tax purposes.Unfortunately,the business was not as successful as they had imagined,and the husband couldn't afford to pay his wife that much money from the business.The marriage went sour,and after separation,the wife brought an action against the husband demanding back pay for the last 11 months,as well as compensation for loss of future earnings.Explain what defence the husband could best raise in these circumstances.

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Question 16

Joe entered into a contract to sell his house to Sam for $200 000.Explain under what circumstances this contract would be binding on the parties even where it was not in writing or evidenced by writing.

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Question 17

Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such a treatment.

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Question 18

Joe advertised his house for sale,and Sam came to have a look at it.While there,they haggled and struck a bargain that Sam would purchase the house for $200 000.They shook hands on the deal and Sam went home.That night,while thinking about it,he realized that it wasn't exactly what he wanted,and so the next day he wrote a letter to Joe stating,"I'm writing this note to let you know that I've changed my mind with respect to the purchase of your home for $200 000,and since the contract isn't valid in any case,I don't expect to hear any more of the matter.Sincerely,Sam." Joe sued Sam for breach of contract.Discuss the legal position of the parties,including any defences available to Sam.

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Question 19

Discuss agreements that restrict competition or that are a restraint of trade and how they are treated in contract law.

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Question 20

"Contracts must be in writing to be enforceable." Discuss the accuracy of that statement.

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Quiz 7: The Elements of a Contract capacity, Legality, and Intention