Question 1

What interests do the courts balance in deciding whether a noncompetition covenant, preventing an employee from leaving and going into competition with her former employer, is enforceable? What is the test applied by the courts?

Accepted Answer

Factors considered are that it is in the...

Question 2

Cory, aged 17, plays hockey under contract with the Northern Manitoba Huskies junior hockey team. What is the legal term given to this particular type of contractual arrangement?

Accepted Answer

A)   beneficial contract of training
B)   beneficial development contract
C)   beneficial contract of service
D)   beneficial minor training contractE) A) and D)
F) All of the above

Question 3

Holding a gun to someone's head to induce them to enter a contract exemplifies which of the following legally exceptional circumstances?

Accepted Answer

A)   unconscionability resulting from presumed pressure
B)   undue influence resulting from actual pressure
C)   misrepresentation resulting from presumed pressure
D)   undue inducement resulting from actual pressureE) B) and D)
F) A) and D) B

Question 4

Identify and describe four classes of contracts that must be written in order to be enforceable in most provinces.

Accepted Answer

The classes are
a. guarantees
...

Question 5

A judge has determined that offending portions of a contract can be severed and the remaining portions saved. What type of common law contractual infraction is this judge resolving?

Accepted Answer

A)   a mistaken contract
B)   a fraudulent contract
C)   an illegal contract
D)   a negligent contractE) A) and B)
F) A) and C) C

Question 6

Johan is negotiating the possible sale of one of his company's regional business operations to Bill. In response to Bill's inquiry regarding the duration remaining on the existing supply contracts, Johan provided the end dates of the contracts themselves. Johan did not advise Bill that two of the customers were on the brink of insolvency. If Bill relies on the information Johan provided, what recourse will contract law allow him?

Accepted Answer

A)   The contractual defect is so substantial that it is of no force or effect.
B)   A misrepresentation must meet the requirements imposed by legislation.
C)   An aggrieved party can choose to enforce the deal or bring it to an end.
D)   Partial provision of information allows the contract to be rescinded.E) None of the above
F) A) and B)

Question 7

Under the classic model of illegality, a freely chosen contract will be held unenforceable by a court in which of the following circumstances?

Accepted Answer

A)   if it is contrary to common law and/or violates public policy
B)   if it is contrary to statue law and/or violates public policy
C)   if it is contrary to public policy and/or the doctrine of good faith
D)   if it is contrary to public policy and/or the doctrine of illegalityE) All of the above
F) C) and D)

Question 8

Sanjip has elected to build up the earth around the cracked foundation of his home prior to listing the home for sale. Sanjip's action will not amount to misrepresentation if he fails to disclose the cracks to potential purchasers.

Accepted Answer

A) True 
 B)False

Question 9

Ranjit, Quan Lu, and Ng are all directors of BigSkyInvestments Inc. who have a beneficial interest in a contract that BigSkyInvestments' management is considering and each must disclose their status to management in accordance with statute requirements.

Accepted Answer

A) True 
 B)False

Question 10

Most provincial jurisdictions in Canada have enacted legislation to provide a form of protection to consumers by setting unconscionability as a standard for the assessment of fairness of the bargain. What element of this legislation is most similar to elements addressed in separate, related consumer loan protection legislation?

Accepted Answer

A)   The price grossly exceeded the price for similar, readily available goods or services.
B)   Physical infirmity or ignorance prevent the consumer from reasonable self-protection.
C)   There was no reasonable probability of payment by the consumer of the obligation.
D)   Illiteracy prevented the consumer from reasonably protecting his or her interests.E) A) and D)
F) B) and C)

Question 11

What categories of actionable misrepresentations entitle an innocent party to a common law remedy in damages?

Accepted Answer

A)   fraudulent and negligent misrepresentation
B)   fraudulent and innocent misrepresentation
C)   innocent and negligent misrepresentation
D)   negligent and factual misrepresentationE) B) and C)
F) B) and D)

Question 12

A simple oversight or error by one negotiating party does not constitute a legal mistake and provides no basis for voiding a contract.

Accepted Answer

A) True 
 B)False  True

Question 13

Which of the following is a valid requirement under the federal Secure Electronic Signature Regulations issued in 2005?

Accepted Answer

A)   to facilitate the association of a person's typewritten name with their unique signature
B)   to ensure that typewritten names bind electronic contractual obligations
C)   to ensure documents and signatures are evidenced in written form.
D)   to ensure alterations to a document after it was signed can be evidencedE) B) and C)
F) A) and B)

Question 14

Which of the following forms the basis of a common argument for setting aside a contract based on mistake that will rarely succeed in Canadian courts?

Accepted Answer

A)   misunderstanding of the legal consequences of giving an oral guarantee
B)   misunderstanding of the terms of an oral contract dealing with land
C)   misunderstanding of the nature or type of contract signed by the party
D)   misunderstanding that a contract is not to be performed within one yearE) A) and D)
F) C) and D)

Question 15

Minors have the option of fulfilling their contractual obligations and suing the other party to enforce the contract.

Accepted Answer

A) True 
 B)False

Question 16

What criteria must be satisfied in order for a misrepresentation to be actionable?

Accepted Answer

A)   the misrepresentation must be made to a minor
B)   the misrepresentation must be material to the contract
C)   the misrepresentation must be made in conjunction with a threat of harm
D)   the misrepresentation must be intentionalE) C) and D)
F) A) and B)

Question 17

Why did the Supreme Court of Canada, in 2009, expressly reaffirm that restrictive covenants in the sale of a business are subject to less scrutiny than other applications of restrictive covenants?

Accepted Answer

A)   because the clauses are typically reasonably clear as stated
B)   because there is typically a power balance in business transactions
C)   because the clauses are typically time limited and less intrusive
D)   because the vendor typically receives consideration for goodwillE) A) and D)
F) B) and D)

Question 18

How does the common law classify a situation in which both parties to an agreement have shared the same fundamental mistake in order to provide a remedy?

Accepted Answer

A)   as a mistake at law
B)   as a shared mistake
C)   as a common mistake
D)   as a mutual mistakeE) B) and D)
F) All of the above

Question 19

In the case of Bank of Montreal v. Duguid (2000) , 47 O.R. (3d)  737 (C.A.) , the court was asked to consider whether a wife who had signed a guarantee on a loan for her husband's business was entitled to be released from the guarantee on the basis of undue influence exerted by her husband. Why did the majority of the court find that the guarantee was enforceable against the wife?

Accepted Answer

A)   because the wife had received independent legal advice
B)   because the wife was a real estate agent and presumably knowledgeable enough to not be unduly influenced by her husband to sign the guarantee
C)   because agreements between spouses are always enforceable
D)   because there was no evidence that the guarantee was unconscionableE) A) and B)
F) B) and D)

Question 20

A contract will be set aside for mistake only if one party realized the other party was mistaken at the time of entering the contract.

Accepted Answer

A) True 
 B)False

Exam 8: Non Enforcement of Contracts

What interests do the courts balance in deciding whether a noncompetition covenant, preventing an employee from leaving and going into competition with her former employer, is enforceable? What is the test applied by the courts?

Correct Answer
verified
Factors considered are that it is in the...
View Answer

Cory, aged 17, plays hockey under contract with the Northern Manitoba Huskies junior hockey team. What is the legal term given to this particular type of contractual arrangement?

Correct Answer
verified

Holding a gun to someone's head to induce them to enter a contract exemplifies which of the following legally exceptional circumstances?

Correct Answer
verified
B

Identify and describe four classes of contracts that must be written in order to be enforceable in most provinces.

Correct Answer
verified
The classes are
a. guarantees
...
View Answer

A judge has determined that offending portions of a contract can be severed and the remaining portions saved. What type of common law contractual infraction is this judge resolving?

Correct Answer
verified
C

Correct Answer
verified

Under the classic model of illegality, a freely chosen contract will be held unenforceable by a court in which of the following circumstances?

Correct Answer
verified

Sanjip has elected to build up the earth around the cracked foundation of his home prior to listing the home for sale. Sanjip's action will not amount to misrepresentation if he fails to disclose the cracks to potential purchasers.

Correct Answer
verified

Ranjit, Quan Lu, and Ng are all directors of BigSkyInvestments Inc. who have a beneficial interest in a contract that BigSkyInvestments' management is considering and each must disclose their status to management in accordance with statute requirements.

Correct Answer
verified

Correct Answer
verified

What categories of actionable misrepresentations entitle an innocent party to a common law remedy in damages?

Correct Answer
verified

A simple oversight or error by one negotiating party does not constitute a legal mistake and provides no basis for voiding a contract.

Correct Answer
verified
True

Which of the following is a valid requirement under the federal Secure Electronic Signature Regulations issued in 2005?

Correct Answer
verified

Which of the following forms the basis of a common argument for setting aside a contract based on mistake that will rarely succeed in Canadian courts?

Correct Answer
verified

Minors have the option of fulfilling their contractual obligations and suing the other party to enforce the contract.

Correct Answer
verified

What criteria must be satisfied in order for a misrepresentation to be actionable?

Correct Answer
verified

Why did the Supreme Court of Canada, in 2009, expressly reaffirm that restrictive covenants in the sale of a business are subject to less scrutiny than other applications of restrictive covenants?

Correct Answer
verified

How does the common law classify a situation in which both parties to an agreement have shared the same fundamental mistake in order to provide a remedy?

Correct Answer
verified

Correct Answer
verified

A contract will be set aside for mistake only if one party realized the other party was mistaken at the time of entering the contract.

Correct Answer
verified

Exam 8: Non Enforcement of Contracts

What interests do the courts balance in deciding whether a noncompetition covenant, preventing an employee from leaving and going into competition with her former employer, is enforceable? What is the test applied by the courts?

Correct AnswerverifiedFactors considered are that it is in the...View AnswerShow Answer

Cory, aged 17, plays hockey under contract with the Northern Manitoba Huskies junior hockey team. What is the legal term given to this particular type of contractual arrangement?

Correct AnswerverifiedShow Answer

Holding a gun to someone's head to induce them to enter a contract exemplifies which of the following legally exceptional circumstances?

Correct AnswerverifiedB

Identify and describe four classes of contracts that must be written in order to be enforceable in most provinces.

Correct AnswerverifiedThe classes area. guarantees...View AnswerShow Answer

A judge has determined that offending portions of a contract can be severed and the remaining portions saved. What type of common law contractual infraction is this judge resolving?

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Under the classic model of illegality, a freely chosen contract will be held unenforceable by a court in which of the following circumstances?

Correct AnswerverifiedShow Answer

Sanjip has elected to build up the earth around the cracked foundation of his home prior to listing the home for sale. Sanjip's action will not amount to misrepresentation if he fails to disclose the cracks to potential purchasers.

Correct AnswerverifiedShow Answer

Ranjit, Quan Lu, and Ng are all directors of BigSkyInvestments Inc. who have a beneficial interest in a contract that BigSkyInvestments' management is considering and each must disclose their status to management in accordance with statute requirements.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What categories of actionable misrepresentations entitle an innocent party to a common law remedy in damages?

Correct AnswerverifiedShow Answer

A simple oversight or error by one negotiating party does not constitute a legal mistake and provides no basis for voiding a contract.

Correct AnswerverifiedTrue

Which of the following is a valid requirement under the federal Secure Electronic Signature Regulations issued in 2005?

Correct AnswerverifiedShow Answer

Which of the following forms the basis of a common argument for setting aside a contract based on mistake that will rarely succeed in Canadian courts?

Correct AnswerverifiedShow Answer

Minors have the option of fulfilling their contractual obligations and suing the other party to enforce the contract.

Correct AnswerverifiedShow Answer

What criteria must be satisfied in order for a misrepresentation to be actionable?

Correct AnswerverifiedShow Answer

Why did the Supreme Court of Canada, in 2009, expressly reaffirm that restrictive covenants in the sale of a business are subject to less scrutiny than other applications of restrictive covenants?

Correct AnswerverifiedShow Answer

How does the common law classify a situation in which both parties to an agreement have shared the same fundamental mistake in order to provide a remedy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A contract will be set aside for mistake only if one party realized the other party was mistaken at the time of entering the contract.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Factors considered are that it is in the...
View Answer

Correct Answer
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Correct Answer
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B

Correct Answer
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The classes are
a. guarantees
...
View Answer

Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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