Chapter 8

Question 1

What are the 4 requisites for binding a contract in quebec?

Answer 1

1) consent
- offer and acceptance
- agreement between parties
- offer may be revoked any time before acceptance is received by offeror
- if an offer has a time limit, it may not be revoked before time expires
- an offer lapses if no acceptance is received or if death or bankruptcy of the offeror or offeree occur
- silence is not acceptance
- genuine intent to enter contract

2) capacity to contract
- minors
- persons of diminished contractual capacity
- corporations

3) cause of contract
- reason for contract
- must be within the law

4) object of contract
- entail obligation of some sort
- object prohibited by law or contrary public order is null

Question 2

What is the major difference between civil code of quebec and the rest of canada’s capacity to contract regarding minors?

Answer 2

• emancipation
• when minors attain the age of 16, they or their tutors may apply to the court for emancipation
• does not confer all the rights resulting from majority, but releases the minor from obligation to be represented for the exercise of his civil rights
• emancipated minor may establish his own domicile, and he ceases to be under the authority of his mom/dad
• emancipated minor may perform all acts of simple admin
• full emancipation is obtained by marriage
• full emancipation enables a minor to exercise his civil rights as if he were full age

Question 3

Explain void and voidable contracts under civil code.

Answer 3

• to annul a contract is to void it; treat is if it never existed
• parties are put back in same legal/economic position they were in before they contracted
• nullity is retroactive; it goes back to the beginning
• relative nullity aka voidable contract, can only be put forth by the party that the law aimed to protect and may be confirmed
• absolute nullity aka void contract, when call parties involved can claim it and may not be confirmed

Question 4

What are the obligations that may be extinguished or terminated by?

Answer 4

• payment
• expiry of an extinctive term (expiration of any time limits)
• novation
• prescription
• compensation
• confusion
• release (waiving right to demand performance)
• impossibility of performance
• discharge of debtor

Question 5

What is novation?

Answer 5

• the replacement of the obligation with a new obligation

- some or all terms of contract would be renegotiated

Question 6

What is prescription?

Answer 6

• an obligation will be terminated by the expiration of any time periods set by law

Question 7

What is confusion?

Answer 7

• is a legal situation which occurs where a debtor becomes his own creditor or visa versa

Question 8

Who is a prior creditor?

Answer 8

• is generally the creditor who is accorded priority in payment from the assets of his debtor

Question 9

what is a hypothecary creditor?

Answer 9

• a mortgagee or lien holder

Question 10

What does lesion mean?

Answer 10

• a mistake
• an economic error on value of the prestation or damage to interests of a party to the contract
• it is a cause of nullity only in cases with respect to minors

Question 11

Define prestation.

Answer 11

• as a performance of something due upon an obligation

Question 12

Define determinate person.

Answer 12

• is a particular individual

Question 13

Define indeterminate person.

Answer 13

• would be a general group such as the public at large