Chapter 8 The Law of Contract: The Civil Code of Quebec

Question 1

Define contract.

Answer 1

A contract is an agreement of wills by which one or several persons obligate themselves to one or several other persons to perform a prestation.

Question 2

How does a contract of adhesion differ from a contract of mutual agreement?

Answer 2

A contract of adhesion is when one party sets the terms and draws up the contract and the other party agrees to the terms, i.e rental agreements, standard insurance policies.

A contract of mutual agreement are formed when two contracting parties negotiate the terms of the contract.

Question 3

What are the FOUR (4) requisites of a valid contract?

Answer 3

1. Consent
2. Capacity to contract
3. Cause of contract
4. Object of contract

Question 4

What are the TWO (2) parts of consent.

Answer 4

1. Offer

2. Acceptance

Question 5

When and how can an offer be revoked?

Answer 5

When a term is attached, the offer may not be revoked before the term expires; if none is attached, the offer may be revoked at any time before acceptance is received by the offeror.

Question 6

Explain the difference between a determinate person and an indeterminate person.

Answer 6

Determinate person is a particular individual.

Indeterminate - would be a general group such as the public at large.

Question 7

Define counter-offer and give examples.

Answer 7

When an offer is made and the person to whom it is made accepts it in theory but wants substantial changes in the conditions.

Question 8

Give THREE (3) examples of when lesion occurs.

Answer 8

1. A sales clerk sold a boy one piece of candy for $1 when it should only cost 30 cents.
2. A newly-licensed 16-yr old teenager bought himself his first car $3000 paying in instalments thinking he can pay for it because he has a summer job. But being young and lacking in good judgement, he also bought the latest video game console. Now he is not able to make his car payments.

Question 9

Give THREE (3) examples of tainted or imperfect consent.

Answer 9

1. A woman being threatened by an ex-boyfriend if she doesn’t consent to marriage.
2. A drug dealer’s family taken hostage by the drug lord threatens to report the drug lord to the police if he doesn’t release his family.

Question 10

Name TWO (2) classes of people who have limited capacity to contract.

Answer 10

1. Minors

2. Other Persons of Diminished Contractual Capacity

Question 11

Define emancipation and explain how it can be obtained.

Answer 11

When minors attain the age of sixteen, they or their tutors may apply to the court for emancipation.

Question 12

What is the purpose of tutors or curators, and who appoints them.

Answer 12

The court appoints a tutor or a curator to assist or represent persons of diminished mental capacity in the management of their affairs.

Question 13

Give TWO (2) examples of prodigality.

Answer 13

1. An alcoholic

2. An old person who has money saved and can be taken advantage of.

Question 14

Explain the difference between a natural person and a legal person.

Answer 14

Individuals are natural persons

Corporations are legal persons

Question 15

Explain the cause of contracts.

Answer 15

The cause (or consideration) of a contract is the prime reason why a person agrees to enter into a contract.

Question 16

Define the object of a contract.

Answer 16

The object of a contract is the juridical operation envisaged by the parties at the time of its formation, as it emerges from all the rights and obligations created by the contract.

Question 17

Explain the difference between absolute nullity and relative nullity.

Answer 17

Absolute nullity is a void contract.

Relative nullity is voidable contract.

Question 18

List the rules for the interpretation of contracts.

Answer 18

1. Intent of the contract must be clearly stated.
2. It will be interpreted in a common sense manner, taking the ordinary meaning of words into consideration.
3. It will also consider the usage of words.
4. It will also consider the circumstances of the contract.
5. It will also take the nature of of the contract into consideration.
6. It should clearly state all terms in language that all parties understand.
7. If there is any confusion, it will be interpreted against the party who drafted the contract.

Question 19

What is probably the most important point to keep in mind when drafting a contract?

Answer 19

It will always favour the consumer.

Question 20

List TEN (10) ways contractual obligations can be extinguished in Quebec.

Answer 20

1. Payment
2. Expiry of an extinctive term
3. Novation
4. Prescription
5. Compensation
6. Confusion
7. Release
8. Impossibility of performance
9. Discharge of a debtor