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

Which of the following agreements has to be in writing under the original Statute of Frauds in order to be enforceable?

In the legal sense, to what does "insanity" refer?

Explain what is meant by "necessary."

Kashif agreed to sell his acreage to his coworker, Melinda, for $400,000. Because the two worked together, they did not see the need to put the agreement in writing. Nonetheless, Kashif sent Melinda a note that referred to the essential terms of their agreement, to which Melinda replied acknowledging their deal. Without any other writing, can this contract be enforced? Explain.

Requirements of a contract include capacity of the parties to contract, legality, and intention of the parties to be legally bound. Which of the following is False with regard to these elements?

From the perspective of contract law, why might the distinction between a guarantee and an indemnity be important?

(Modify this question for your jurisdiction.) Bill, a college graduate, rented office space under a two-year lease. He needed the space because he contracted with the provincial government to create a program to integrate the various inventories of different government agencies. Bill hired Janet and Fred as full-time programmers for one year. He bought three desks for cash. He bought several laser printers, for which his dad signed as a guarantor. He bought computers from a different seller under a conditional sales contract. Which of these contracts should be evidenced in writing to be enforceable?

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

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

Sam agreed to sell his house to Joe for $400,000, 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.

The case of Canadian Imperial Bank of Commerce v. Milhomens examined the effect of one party's insanity on a contract. What did the Court find?

Only contracts involving significant sums of money must be in writing to be enforceable.

Even in commercial relationships, if the parties make it absolutely clear that they don't intend the arrangement to be legally binding on them, the agreement will not be enforceable in court.

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, 2015, 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 the program 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?

Explain how an insurance contract avoids being void as a wager.

What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?

Contracts to commit a crime or a tort are void.

Which one of the following categories of persons do not have their capacity to enter into contracts limited?

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

Why was the Statute of Frauds originally passed?