Contract Criteria

Question 1

Offer and Acceptance

Answer 1

Offer may only be accepted to whom the offer is made

Offer may only be accepted after it is communicated

Question 2

is Advertisement an offer?

Answer 2

Advertisement is a invitation to do business not and offer

Question 3

Competition Act

Answer 3

Offence to not sell at a n advertised price

Offence to not sell at lowest ticketed price

Question 4

How can you Terminate an offer

Answer 4

Death
Bankruptcy
Mentally incompetent
Revocation (Official Cancellation)
Rejection of Counter Offer
Expiry of a preset time
Expiry of a Reasonable time

Question 5

Unilateral Contract

Answer 5

1 person bound to contract this is involved in rewards and commercial Promotion

Question 6

Bilateral Contract

Answer 6

2 or more people bound to contract

Question 7

Intention

Answer 7

presumption that family members do not intend to contract

Presumption that non family members do intend to contracts

Question 8

Mutual Consideration

Answer 8

can be anything of value (such as an item or service), which each party to a legally binding contract must agree to exchange if the contract is to be valid.
Exchange in Present or future
Gratuitous promise
Past consideration
Gratuitous reduction of debt

Question 9

What is a Seal

Answer 9

A seal is a promise made legal with a signature

Question 10

Quantum Meruit

Answer 10

a reasonable sum of money to be paid for services rendered or work done when the amount due is not stipulated in a legally enforceable contract.
(Pay for Going Rate)

Question 11

What are the limits of Capacity

Answer 11

Being of Age
Substance impairment
Mental Competence

Question 12

Executed Contracts

Answer 12

Fully Performed Party lacking capacity may repudiate the contract if taken advantage of

Question 13

Unexecuted contracts

Answer 13

Not full performed
Party Lacking may repudiate contract
Responsible for willful damages (Kid destroys something your at fault of damages)

Question 14

Exceptions to repudiation

Answer 14

• Station In Life what the person lacking Capacity are necessary shelter food
• Beneficial Contracts (Employment)

Question 15

Is the Contract Legal

Answer 15

courts don’t enforce or reverse illegal contracts

Question 16

when is Gambling legal?

Answer 16

• Illegal Unless government sanctioned

- Insurance Legal if there is insurable interst

Question 17

Competition Act

Answer 17

Illegal
-Restraint of trade
 Agreements of fixed pricing
 Agreements to not compete
 Mergers 
 Monopolies

Question 18

What 5 things do you need to make a binding contract

Answer 18

• Intention
• Offer and Acceptance
• Mutual Consideration
• Capacity
• Legal

Question 19

Restraint of Trade Exception

Answer 19

• Vendor of a business including good will covenants not to compete on reasonable terms (5 years max trading)
• When a key employee covenants not to compete 5 years maximum