COM 304 FINAL QUESTIONS & VERIFIED ANSWERS
Contracts required to be in writing - Answers - involving interests in land,
- Except for when contract for sale of land is verbal, and the purchaser performs certain
acts that are consistent with that very contract. (doctrine of part performance)
not performable in 1 year, contract cannot be fulfilled within a year
UCC contract for the sale of goods over $500
in consideration of marriage
Contracts with executor or administrator of an estate who agrees to be personally
responsible for all debts of the estate
contracts where one person agrees to be responsible for the debt of another person
Contract - Answers - "An agreement between two or more capable persons for a legal
consideration to do or not to do some lawful and intended act."
5 elements of a contract - Answers - Capacity of the parties
Mutual agreement
Genuine intention
Legal consideration
Lawful subject matter
All 5 have to be present or contract not enforceable
After determining all elements are present, check to see if it is in correct form (eg land
contracts have to be in writing)
Who has the capacity to contract? - Answers - Everyone, certain persons need special
look
Capacity of an infant to contract - Answers - Anyone under age of 18
Contract made by infant is voidable at the option of the infant unless it is contract for
necessaries (food, shelter, clothing, anything that is befitting the infant)
Necessaries - Answers - Food, clothing, shelter, medical care
The continuation of the same lifestyle
Capacity of Impaired to contract - Answers - Impaired by alcohol, drug, or mental
, If contract for necessaries, contract is held
If contract not for necessaries, and if the person can prove they were impaired at time of
signing and that the other parties know or ought to have known that the person was
impaired, the contract is voidable
Capacity of Alien to contract - Answers - Alien is person who is citezen of another
country
Full capacity to contract unless enemy alien.
Enemy alien is person who is a citizen of a country that Canada is at war with
In this case, the contract is not legal. If the contract was made before becoming enemy
alien, the contract is suspended at the time of becoming an enemy alien and then
resumed when not.
Sole Properietorship and contracts - Answers - Owner fully liable for all contracts
Unlimited personal liability
Partnership and contracts - Answers - Known as a firm
Each partner is liable for the others
Eg. can sue all partners in the dentist office even if only one did the crime
Partnership does not have separate legal status, only the individuals can be sued
Corporation and contracts - Answers - Full capacity to contract
Separate legal entity from owners
Owners not liable
Mutual agreement - Answers - Offer and Acceptance
Has to be definite
Acceptance must be - Answers - Unconditional:
- Does not change terms of the offer
Communicated to each party
In correct manner
Contracts required to be in writing - Answers - involving interests in land,
- Except for when contract for sale of land is verbal, and the purchaser performs certain
acts that are consistent with that very contract. (doctrine of part performance)
not performable in 1 year, contract cannot be fulfilled within a year
UCC contract for the sale of goods over $500
in consideration of marriage
Contracts with executor or administrator of an estate who agrees to be personally
responsible for all debts of the estate
contracts where one person agrees to be responsible for the debt of another person
Contract - Answers - "An agreement between two or more capable persons for a legal
consideration to do or not to do some lawful and intended act."
5 elements of a contract - Answers - Capacity of the parties
Mutual agreement
Genuine intention
Legal consideration
Lawful subject matter
All 5 have to be present or contract not enforceable
After determining all elements are present, check to see if it is in correct form (eg land
contracts have to be in writing)
Who has the capacity to contract? - Answers - Everyone, certain persons need special
look
Capacity of an infant to contract - Answers - Anyone under age of 18
Contract made by infant is voidable at the option of the infant unless it is contract for
necessaries (food, shelter, clothing, anything that is befitting the infant)
Necessaries - Answers - Food, clothing, shelter, medical care
The continuation of the same lifestyle
Capacity of Impaired to contract - Answers - Impaired by alcohol, drug, or mental
, If contract for necessaries, contract is held
If contract not for necessaries, and if the person can prove they were impaired at time of
signing and that the other parties know or ought to have known that the person was
impaired, the contract is voidable
Capacity of Alien to contract - Answers - Alien is person who is citezen of another
country
Full capacity to contract unless enemy alien.
Enemy alien is person who is a citizen of a country that Canada is at war with
In this case, the contract is not legal. If the contract was made before becoming enemy
alien, the contract is suspended at the time of becoming an enemy alien and then
resumed when not.
Sole Properietorship and contracts - Answers - Owner fully liable for all contracts
Unlimited personal liability
Partnership and contracts - Answers - Known as a firm
Each partner is liable for the others
Eg. can sue all partners in the dentist office even if only one did the crime
Partnership does not have separate legal status, only the individuals can be sued
Corporation and contracts - Answers - Full capacity to contract
Separate legal entity from owners
Owners not liable
Mutual agreement - Answers - Offer and Acceptance
Has to be definite
Acceptance must be - Answers - Unconditional:
- Does not change terms of the offer
Communicated to each party
In correct manner
