Exam 3: Formation of Contracts

An adult can sue a minor in tort to get around the minor's contractual incapacity.

An insane person can escape a contract on the basis of incapacity only if the other person knew or ought to have known of the insanity.

Contracts involving domestic relationships are presumed to be binding.

An unwritten contract that the Statute of Frauds requires to be evidenced in writing is still valid; it is merely unenforceable by the courts.

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

Carlos visited Vancouver last summer and instead of going back to Ontario he stayed and enrolled at Simon Fraser University.He needed money but didn't need things left in Ontario,including his car.In mid-December,he wrote a friend and offered to sell the car for $4000 and told him to send him a letter with his answer.His friend received the letter on January 2,checked his financial situation,and sent a letter of acceptance on January 3.Meanwhile Carlos,short of cash and not having heard from his friend,sold the car to Mr.Reno on December 31.Carlos received his friend's letter on January 8.On these facts,which of the following is true?

All contracts to restrict competition are void.