Exam 7: The Elements of a Contract: Capacity, Legality, and Intention

Which one of the following is required to be evidenced in writing under the Statute of Frauds or its equivalent?

Give three examples of contracts that would be considered void because of illegality.

Which one of the following correctly indicates the position of the parties in respect to contracts involving minors?

Indicate 4 categories of persons that have their capacity to enter into contracts limited to some extent.

Which of the following contracts is void?

If the relationship between the contracting parties is primarily commercial in nature, what do the courts presume?

"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.

Only contracts that involve the commission of a crime or tort are void on the basis of illegality.

Contracts may be in writing, they may be under seal, or they may simply be verbal, but they may not be implied from the conduct of the parties.

If the court classifies the nature of a third-party agreement as a(n) ________, there is no requirement of writing.

The nature of the legislation governing incorporation in each jurisdiction determines whether a corporation has its capacity to contract limited or not.

If a contract is not evidenced in writing this does not make it void, only unenforceable.

Today, there is no general rule that a contract must take a certain form, although most jurisdictions have statutory requirements regarding the transfer of land.

When at war, what happens to contracts with residents of an enemy country if they are not detrimental to Canada?

Which of the following are in no way incapacitated when entering into contracts?

Which of the following is true with regard to the intention of the parties to an agreement to enter into a legal relationship? Where appropriate, assume that all the other elements necessary to form a contract are present.

If a person says that he had not intended to be bound by an agreement when he entered it, there can be no contract.

Contracts may be in writing, under seal, verbal, or even implied.

When a person is declared mentally incompetent by a court, who is appointed and for what purpose?

A(n) ________ describes a relationship in which a third party assumes a primary obligation for the repayment of the debt along with the debtor.