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

In examining contracts that include a restrictive covenant,the court will not presume that the term is in restraint of trade unless the evidence establishes that it is.

A minor is

In order for a person under mental incapacity to avoid a contract made while that person was incapacitated,the incapacitated person must show

In order to collect compensation for a loss under a fire insurance policy,the insured must show an insurable interest.

A minor's freedom from liability is limited to contract.Explain.

For the purpose of a contract,who is a minor?

Which of the following is NOT true?

Which of the following is TRUE?

Where a contract is illegal,the contract exists,but will not be enforced by the court.

When Mary was 17 years old,she was asked to become a partner in an clothing design shop because she created brilliant clothing designs.Mary liked the idea at the time and signed a partnership agreement/contract.However,after working for a month,she decided that it was not something she wanted to do.After Mary turned 18,she decided to stop being a partner in the clothing shop.In this situation

A void contract is one that is deemed in law to have never been created.

When a court strikes down an unreasonable agreement between an employer and employee that restricts the future economic freedom of the employee,the court serves two public interests,namely,protecting employees and

Happy Carrier Company (HCC)is in the business of shipping goods.Yesterday HCC agreed with John Smith to ship Mr.Smith's furniture from Toronto to Ottawa.Mr.Smith's furniture is worth $100 000.00.Just before loading the furniture onto its truck,HCC's driver had Mr.Smith sign a contract that contained a term that limited HCC's liability for destruction or damage to the furniture to $50.00 if it resulted from the negligence of HCC or its employees.On the way to Ottawa,HCC's driver lost control of the truck and Mr.Smith's furniture was destroyed by fire after the truck crashed into a brick wall.In this situation

Jack and Jill agree to tell Michael that they will beat him up if he does not give them his valuable coin collection.According to the common law,this agreement between Jack and Jill is

During bankruptcy proceedings,a debtor is often under certain contractual disabilities which include necessaries until he is discharged.

A year ago,James sold a motor bike to Jim,his best friend.At the time that the bike was sold,Jim was a minor.Jim is still making payments to James.Jim will be attaining the age of majority in a few months' time.How should James protect himself?

Whenever a contract involves or requires the commission of a tort,the contract is usually illegal.The torts that typically arise in an agreement include all of the following EXCEPT

Once a contract has been made,legal capacity will be presumed unless the defendant proves otherwise.

When a minor reaches the age of majority,a contract that was entered into earlier and was unenforceable remains unenforceable unless

If a court finds that one term of a contract is void and the remaining parts are valid,it can do the following to the void term