Canadian Business Law

Your total word count for midterm 2 should be 4 0 0 words or less.

 

Question 1

 

We discussed the 5 elements of contract:

2. Consensus
4. Consideration
6. Capacity
8. Legality
10. Intention

For each of the following situations, discuss whether the contract is valid and enforceable. Use this chart template for each of the 5 elements and bullet points in your explanations:

Situation A

Element of Contract	Is this element present? (Yes/no)	Explanation (if applicable)
Consensus
Consideration
Capacity
Legality
Intention

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Situation A:

Maria is a business owner with 20 employees and $8 million in revenue annually. She is currently subscribed to Sketchy Accounting software service that charges her $200 a month. She clicked on "accept" on the conditions of the subscription agreement, which was a 20-page document in small writing and numerous terms that she didn't understand. Buried on page 12 was a line that said "late payment will result in immediately having access to your account revoked and a $3,000 reinstatement fee." She was a day late in payment and Sketchy Accounting refused to reinstate her account without the $3,000. She paid to get reinstatement and sued to recover the $3,000. Will Maria successfully reclaim the $3,000?

Situation B:

Jasneet is a gambling addict. She struggles to make good life decisions. She regularly goes to Chances Casino (a provincially regulated and licensed gambling establishment) where both staff and management are concerned that she has a gambling addiction. However, no preventive action is taken by management to restrict her gambling. Jasneet wants to bet $2,000 on a Vancouver Canucks hockey game. The staff member says, "are you sure Jas? That's a lot of money. Make sure you can afford rent!" Jasneet sneers and replies, "just put in the bet already."

Jasneet loses the bet and her $2,000. She sues the casino in small claims court and claims that the casino knew she has a gambling addiction which is a form of mental illness, and that they should return her money. Will this claim be successful?

Situation C:

Sheena and Colin are fans of the Doors of Stone book series. They both verbally make a wager: if the final book in the series is released by the end of 2029, Sheena will give Colin $100. If the book is not released by then, Colin will give Sheena $100.

They both made this wager while sober. At the time they made the bet, they were playing golf and wagering $50 on their golf game. The golf game wagers were paid at the end of the afternoon. Is this a binding contract? Note: Assume all these wagers are legal.

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Question 2 (10 marks)

Chelsea is running a debate club at Coast Mountain College. She ordered 100 t-shirts for an event that the debate club is hosting. She sent the t-shirt makers, Tee-rific Apparel, a design and her desired colour palette. These were correctly sent on time.

Upon having the t-shirts delivered, she discovered that the Tee-rific Apparel had used bright colours where she wanted dark colours and in bold print misspelled the name of the school as "Coast Mountain Collage."

Explain if the colour of the shirts and spelling is a condition or warranty of the contract, and what Chelsea's remedy is.