Contracts

Question 1

Contract

Answer 1

An agreement between 2 or more capable persons for a legal consideration to do or not to do some lawful and genuinely intended act

Question 2

What contracts are commonly encountered in veterinary medicine?

Answer 2

• Employment contracts
• Purchase agreements
• Partnership agreements
• Leases – building, vehicles, equipment

Question 3

5 elements of every contract

Answer 3

1. Capable- over 18yrs, mentally competent, no drug.alcohol ect.
2. Mutual agreement
3. Legal consideration- what a person receives for what they agree to
4. generally intended
5. lawful subject matter

Question 4

What contracts must be written?

Answer 4

• All contracts that cannot be completed within a year must be writing
• Property (chattel) vs. real property (land and any structures) – sale of real property must be in writing
• All contracts where another person agrees to be responsible for a debt. Ex. co-signer for a loan/mortgage
• All contracts relating to the execution of a will/estate

Question 5

Ways that a contract can end

Answer 5

• Performance- each party performed their respective obligations
• Agreement- both parties agree to terminate or waive their rights
• Substitution- enter into a newer agreement (eg. Hired at certain price and want to renegotiate years later)
• Impossibility of performance- “fore majeure” , though no fault of one party, it is impossible to complete the contract (eg. Businesses during COVID)
• Operation of Law- law puts an end to the contract
• Breach of contract- renunciation or failure to perform

Question 6

Rights or Remedies

Answer 6

Remedy= damages
(compensatory, not punitive)

Question 7

Restrictive covenants

Answer 7

Non-complete clause or non-solicitation clause

Question 8

Non-compete clause

Answer 8

Contractual terms designed to protect a business from competition by a former employee that could harm the business.

Often not enforced in canadian courts. Would need proof that former employer is causing a negative effect on previous business.

Question 9

non-solicitation covenant

Answer 9

Prohibits a former employee from soliciting the customers or employees of his or her former employer

Question 10

Which type of covenant is most likely to be enforced?

Answer 10

non-solicitation covenant

Question 11

Best practice for making non-compete covenants

Answer 11

• only prohibits employer from becoming engaged in exact same business as you
  -geographic scope no larger than area affecting your business
• last no longer than is necessary fr an employer to regain competition afvantage lost when employer departs

Question 12

Shotgun clause

Answer 12

A, B, and C own a clinic. C tries to buy them out offering money. A and B decide it is not enough, triggering shot gun effect and they buy C out of company and C is forced to leave.