Ethics Final Flashcards
5 required elements of a contract
- offer and acceptance
- mutual intent
- consideration - value exchange
- capacity
- lawful purpose
what is the purpose of contract law?
to regulation formation of an agreement between parties and the enforcement of their legal promises
Gratuitious promise
A promise made without consideration
Equitable estoppel
- if Party #1 takes action to change terms (ex. payment)
- and Party #2 accepts actions, without changing written contract, #2 has led #1 to believe that the contract is modified
- Party #2 is estopped - they cannot insist on reverting to original terms
- the equitable outcome is to continue with the modified terms
2 types of misrepresentation
- fraudulent - deceived party can cancel contract, claim compensation for reasonable costs and sue for damages
- innocent - deceived party may cancel contract, can only claim for direct costs (ex. cost to remedy errors in specifications)
Contra Proferentum
If a contract is worded ambiguously, it is usually interpreted against the party which was most ambiguous
Parol Evidence
Evidence outside the contract or extrinsic. Terms are agreed but not documented in written contract (cannot enforce so write it in contract)
Fiduciary duty
- Heightened duty to care for the interest of a party in priority to one’s own interest
- Duty not to act against the interest of the other party
- Obligation in circumstances involving relationship of ‘trust’ with a ‘beneficiary’ of the duty of care
Contract breach
Failure to perform an ESSENTIAL requirement. Substantial completion and warranties do not count as contract breach
Remedies for contract breach
- damages (direct and indirect)
- Duty to mitigate
- Court actions (specific performance or injunction)
What is the goal of the Canadian Environmental Protection Act (CEPA 1999)?
To prevent pollution, protect environment and human health. Placing obligation on corporate officers to take ‘reasonable measures’ to ensure compliance
What is the purpose of the Environmental Assessment Act (2012)?
Requirements for major projects under federal jurisdiction
What is the purpose of the Environmental Enforcement Act (EEA 2010)?
Consolidates enforcement regimes for protection of flora, fauna, particular geographic areas and enforces CEPA
What is a crisis?
Anything that negatively impacts/affects people or the environment, and which is outside their personal ability and accountability to correct
7 steps of crisis management framework
- apply past process
- appoint senior leaders
- look for early warnings
- understand the problem
- assess the damage
- resolve crisis
- move forward
3 themes of Earth Charter
- ecological integrity
- social and economic justice
- democracy, nonviolence and peace
What should a contract owner do if all bids are non-compliant?
redefine scope and start again (don’t negotiate)
What is a tender?
An offer to contract
In contract law, when is communication deemed to occur?
when communication received
unless parties agree on mail
What is an options contact in contract law?
holder pays a premium for first right of refusal for a contract, for a defined time
What is a letter of intent?
Expression of interest in proceeding with transaction, subject to further agreement
not a contract, but if very detailed could be deemed an offer
When will a court intervene in a contract agreement?
If made under duress, fraud, undue influence
What is required for legal capacity?
age of majority
competent (mentally sound, not wasted)
corporate power (corporations bounds by acts of its officials)
When is a corporation bound by the acts of its officials?
- acts are withing scope of officials role
- other party has done due diligence on the official
- no prohibitions