Exam 8: Formation of a Contract: Capacity to Contract and Legality of Object

On January 1,Jack,a minor,orders some computer software programs from a computer company.Jack needs the programs for school.The software programs cost $4000.00.On January 5,just before the computer company sends the software programs out,Jack has a change of heart.So he calls the computer company and tells them that he no longer wants the programs.In this situation

Minors will be liable for contracts

Explain the difference between a contract that is void and one that is illegal.

When can an adult recover money loaned to a minor?

A contract made by a minor is enforceable against him or her,and unenforceable by him or her.

A contract that is void is also unenforceable.

Explain,with the use of examples,the concept of legal capacity.

The fact that a labour union does not have capacity to sue and defend on its own is not an absolute bar to the bringing or defence of an action on its behalf.Explain.

ABC Inc.and XYZ Ltd.enter into an agreement.The agreement includes,among other things,a provision that both parties will monitor their prices to ensure that both parties price their products equally.In this situation,the court will set aside the whole contract as being illegal.

Explain why it can be important in terms of enforcing a contract to ensure that you have all the licences required by government regulation and by your trade.

At common law,a clause in an agreement between a purchaser and vendor for the sale and purchase of a business that provides that the vendor will not carry on the same business within a radius of 1500 kilometres of the business being sold

A court will refuse to enforce a contract that involves illegality only if it can be shown that both parties knowingly agreed to illegality.

Once a plaintiff proves that there was offer,acceptance,and consideration for the promise,the court will ordinarily presume an intention to create legal relations.At that point,the court will also presume that two additional elements are present.What are these two additional elements and why does the court presume that they are present?

Native Canadians living on reserves are considered to be ________ of the Crown.

Mary is 13 years old,and she enters into an agreement with a modelling agent pursuant to which the agent agrees to represent her.Which of the following is NOT true?

Bill offers $500 to Philip and Tony to assist him in enforcing a loan.He requests that they attend at the debtor's residence and threaten him with harm if he does not repay Bill his money within five days.Philip and Tony decide not to carry out their obligations but rather spend the money at a local casino.Will Bill's court action to recover the money succeed?

Upon attaining the age of majority,a minor may be bound by two kinds of voidable contracts,namely

Which of the following is TRUE regarding the legal capacity of the corporation?

Harvey is a teacher.He is also a member of a labour union that represents teachers.For the past month,the union has been negotiating a new agreement with the government of Ontario.Yesterday,the union executive authorized Harvey to bring a lawsuit against the government of Ontario for failure to bargain in good faith.In this situation

Explain how a confidentiality provision in an employment agreement can give rise to an ethical dilemma for an employee and whether the law should permit the breach of such a provision where it is warranted.