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law for business

Questions and Answers of Law for Business

“An offeror who is willing to receive an acceptance by mail always runs the risk of being bound by a contract without knowing it.” Is that statement true? Explain your answer.
“An offer of a unilateral contract is always accepted through the performance of some act. An offer of a bilateral contract is never accepted through the performance of some act.” Are those
What is a “gratuitous promise”? Is a gratuitous promise ever enforceable in the law of contract? Explain your answer.
Douglas Dixie and Millie Grace, both aged 43, have known each other since high school. Their adult lives, however, followed very different paths. After earning a college business degree, Douglas
Is it possible for a person to enter into an enforceable contract without receiving any benefit from the agreement?
The Goldberg Conservatory, a music school, ran a notice in several newspapers to announce that it had decided to have a new organ built and installed on its premises. The notice also asked for
Explain the difference between “sufficient consideration” and “adequate consideration.” Will either type of consideration support the creation of a valid contract? Explain your answer.
Hardy Construction Ltd contractually agreed to build an office complex for Schtick Corp. Under the terms of that contract, Hardy Construction would incur a financial penalty if it failed to complete
What is a “forbearance agreement”? Why do the courts generally uphold such agreements? Are such agreements supported by consideration?
After being charged with a serious crime, Anthony Lampleigh wrote to Tammy Braithwait, a lawyer, asking for assistance. After setting out the facts of the case and the precise nature of the
What is the “requirement of mutuality”? How is it related to the bargain theory of contract?
Mr Chin ran down Mrs Moss at a pedestrian crosswalk. Because she suffered severe brain damage, her interests were represented by the Public Trustee. The Public Trustee sued Mr Chin in the tort of
What is “past consideration”? In light of the bargaining process that underlies a contract, explain why judges hold that past consideration is no consideration at all.
The Blacksox Baseball Club and Roark Designs Corp conducted extensive negotiations concerning the development of a new ball park. During those negotiations, the owner of the Blacksox said to the
“There is a difference between past consideration on the one hand and a promise that indicates the reasonable price for work that was previously performed under a contract on the other hand.”
Christine Robinson owed a debt of $25 000 to Black Crow Music Inc (BCMI). Because she genuinely could not pay the full amount, Christine asked the company whether it would be willing to accept $15
Explain why a pre-existing public duty cannot be good consideration under a new contract. Does your explanation rely entirely on the doctrine of consideration, or does it also include other factors?
Everlast Tire Co, which manufactures automobile tires, sold a shipment of tires to Automotive Wholesaler Inc. Under the terms of that contract, Automotive Wholesaler was allowed to resell the tires
Explain the relationship between the doctrine of consideration and the concept of quantum meruit.
During the summer months, Ontario Cruises Inc (OCI) operates pleasure cruises around Lake Ontario, one of the Great Lakes. The purchase of a ticket, for $50, entitles a customer to enjoy an
In your province or territory, does legislation ever allow you to discharge a debt by paying your creditor a lesser amount than you actually owe them?
The province intended to have a highway built in an otherwise undeveloped area. Its first step was to hire ND Lea & Associates, a firm of architects, to draft a basic plan for the project. The
“A seal is a type of consideration.” Is that statement true? Explain your answer.
Describe the doctrine of promissory estoppel. What does it mean to say that promissory estoppel can be used to vary, but not create, contractual rights? Give examples to illustrate your answer.
Explain the relationship between the requirement of consideration and the privity of contract doctrine.
What is a “Himalaya clause”? What effect does such a clause have on privity of contract?
Explain the concept of taking an assignment subject to the equities.
Why do you think judges allow employees to take advantage of exclusion clauses to which they are strangers? Give at least two reasons for your answer.
Distinguish between a pre-contractual representation and a contractual term, giving examples of each. Why is that distinction important?
Seymour is a supplier of custodial cleaning products. While negotiating a contract to sell a crate of floor wax, Seymour makes the statements below. Categorize each statement as(i) A pre-contractual
Define “misrepresentation” in your own words. Can a statement be a misrepresentation if neither party is aware that the statement is false? What must one be able to demonstrate to prove
Shawna and Sheila live in a small northern community where the roads are not always plowed in the winter. After getting stuck in the snow one too many times, they decided their best option for a
What is the difference between an opinion and a statement of fact?
Maria and Joe are married and co-own a construction supply business. They are also employees of the construction business and participate in the employee group insurance plan. A salesperson for Peace
Under what circumstances might a true statement be treated by the courts as a misrepresentation?
QwikiSlim published advertisements at various dates in newspapers. The statements published in the newspapers are reproduced below:LOSE: UNWANTED FAT IN ONLY 90 MINUTES. No costly pills. No tiring
When would you seek an order for restitution? What does restitution give you?
One sunny afternoon, adventurous couple Kim and Tracy decided to go parasailing at a local parasailing operator, Just Chute Me. When they arrived at Just Chute Me, they were provided with a waiver
What is meant by the term “rescission”?
List three circumstances that may preclude the victim of a misrepresentation from seeking restitution. Why is restitution unavailable in these circumstances?
Mr Anwar, a taxi driver, signed an agreement with Tip Top Cabs that provided him with the use of a van-taxi licence in exchange for a monthly licence fee. He also paid a "dispatch system fee" for the
The Upper Crust Academy, an exclusive boarding school, has inserted the following clause into its standard form agreement:The parents of__________ hereby authorize the Principal to ensure that said
What is the duty of honest contract performance? Describe how businesses should be aware of this duty from a risk management perspective.
Lila and Binyamin decided that they would like to spend the first few years of their retirement sailing around the world. Because they would be spending so much time on the boat, they decided they
Explain the difference between an “implied term” and an “express term”? Why is it sometimes difficult to determine the meaning of an express term?
You work at a company called CuddleTech (CT). CT operates a website where users can play 3-D interactive video games online. When users create an account for the CT website, they are required to
How does the parol evidence rule impact business relationships? In light of this rule, how can contracting parties reliably alter the terms of a standard form contract?
When is a contractual term ambiguous? Describe how courts resolve disputes over ambiguous terms.
When might you prefer that the court take a literal rather than contextual approach to contractual interpretation? When might you prefer a contextual approach?
Compare and contrast the “golden rule” of interpretation and the contra proferentem rule. How do these different rules generate varying approaches to contract interpretation?
What is the business reality that leads the court (or legislation) to recognize implied terms in a contract? When will a court find that a contract contains an implied term? When will a court be
What is a clickwrap agreement? How does it relate to a standard form agreement?
If a business wants to limit its liability using a standard form contract, what steps should it take?
What measures can a company take to ensure that the terms on a ticket form part of its contract with customers?
Describe the plain language approach to legal writing. What are its benefits? What steps should businesses take to promote plain language in their legal materials?
Describe a boilerplate clause. When might a business want to use a boilerplate clause and when is it inappropriate to do so?
What is meant by the term “contractual capacity”?
Why does the law treat minors differently than adults? Give examples of contracts that will be enforced even if a person has not attained the age of majority.
Clinton was 14 years old when his mother entered into a written agreement with the town library on his behalf. According to the agreement, Clinton would obtain full borrowing privileges and his
What is the key difference in how the law treats contracts entered into by a minor as compared to contracts entered into by a person lacking mental capacity?
Elwood is a pig farmer who is known to enjoy a drink or two. One day in July, after a weekend of particularly heavy drinking, he staggered into the office of Pork Bellies of America and offered to
What protections exist in contract law for individuals with challenges with comprehension? What evaluative tools might a court use to determine whether an individual has capacity to contract?
Michael is a young man with a long psychiatric history. One day he decided to apply for a credit card from his local bank. He filled out the forms, submitted them to the bank and soon after received
Can a person enter into a contract while intoxicated? What might an adjudicating court be concerned about in assessing incapacity due to intoxication?
The General Manager of Nunzio's Kosher Pizzeria has hired you to wash dishes in the evening. On your third shift, you are finally introduced to Nunzio. He seems like a nice guy as he welcomes you
Explain how the contractual capacity of a chartered corporation differs from that of a statutory corporation.
Hole-In-One Mini Donuts Co (HIO) was knee-deep in negotiations with Lemon Chicken Enterprises (LCE) for the sale of its deep-fryer machine factory and the adjacent 345 acres of land. HIO presented to
Why must a business person be particularly careful when contracting with or on behalf of an association?
Waggles Farm grows grains and legumes. This past year, it planted a large crop of lentils. Part of Waggles's business plan is to get commitments from purchasers in advance of the harvest by way of
Do Indian bands have the legal capacity to contract? Under what circumstances do Aboriginal persons have the capacity to contract? Explain.
Several years back, Golden Joe's Geology bought a 1000 acre package of land in the Northwest Territories. When he purchased the property, Joe was sure to purchase the mineral rights as well. For
Describe some risk management techniques that businesses can use to ensure that contracts it creates are enforceable.
Emond is an experienced fisherman. A local restaurant hired Emond to procure 500 kilograms of herring, which it would freeze and serve to customers over the coming months. The restaurant's herring
What is the Statute of Frauds? What types of contracts does it impact? Describe the types of circumstances in which Canadian businesses should consider its provisions.
Bundy had lived and worked on a farm his entire life. For the past 20 years or so, he had rented most of the farmland to his extended family, since he is no longer fit to work the land himself.
If a contract does not comply with the Statute of Frauds, making it unenforceable, does it follow that the agreement has no legal effect? Explain your answer.
Mind Games Inc hires CompuNerd to overhaul its entire computer network for a flat fee of $350 000. Marinka, Mind Games's general manager, stresses that the computer upgrades must be finished by the
What is the difference between a mistake about the existence of the subject matter of a contract and frustration?
Coby and Maya immigrate to Canada. Unlike her doctor husband, Maya speaks no English and misses her friends and family terribly. She becomes depressed. Her husband, Coby, prescribes an antidepressant
How might a case of mistaken identity provide a contractual defence?
What does it mean to say that a contract is “frustrated”? What is the relationship between frustration and mistake?
Explain why the plea of non est factum is part of the law of mistake.
What makes a contract illegal? Will every illegal contract be set aside in its entirety?
Describe the doctrine of public policy. In what situations might something be presumed contrary to public policy? Why might this be of concern for Canadian businesses?
Outline three bases upon which a court might set aside an unfair contract. Is there a common thread underlying the rationale in each?
Erin had always been independent. Shortly before her seventeenth birthday, she moved out of her parents' house and bought a used car, which she needed for her fledgling chocolate-covered-cranberry
What are the five factors that courts will assess when determining whether economic pressure exerted during the formation of a contract was illegitimate?
When two people enter into a contract for the sale of goods, do they establish a fiduciary relationship? Why or why not?
“Given the need for speed, contractual obligations must be performed on time. It is impossible for an agreement to be discharged by performance if a party either pays late or delivers goods
Bettini entered into a contract with the Vancouver Opera Company under which he agreed to perform for the company twice a month for one year. A term in the contract required Bettini to arrive in
Briefly explain the effect of discharging a contract.
Tadpole Inc wanted to sell a warehouse that it owned. It therefore entered into a contract with Bentley Properties Inc, a real estate agent. That contract contained a number of important terms.
“A contract automatically comes to an end if both parties simply ignore it even though the time to perform has come and gone.” Is that statement correct? Explain your answer.
Dennis and Carmen entered into a contract under which he agreed that, in one week’s time, he would pay $10 000 in exchange for her motorcycle. Three days later, however, he contacted her and said,
Explain how and why the Currency Act is important to the issue of tender of payment.
Rabby Computer Inc agreed to design a networking system for Pendulum Publishing Ltd. The contract called for Pendulum to pay $50 000 after Rabby completed its performance. However, when Rabby
“Cash is dangerous for the same reason that it is useful.” Think about the concept of tender of payment and provide the best explanation for that statement.
The Darjeeling Tea Company hired Hans Rooibos, an artist and carpenter, to produce and deliver 10 tea chests ornately carved from teakwood. The tea chests were intended to decorate the company's
Explain how a debit card works.
The defendant owns and operates DiNardo's Mansion, a luxurious building that is available for conferences, parties, and other events. The plaintiffs, Ellen and Richard, wanted to hold their wedding

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