Intro to Contracts

Question 1

The following defines what?

A binding agreement made between two or more persons that the law recognizes and will enforce

Answer 1

A contract

Question 2

What are the two types of contracts?

Answer 2

• implicit (buying coffee where you serve yourself and give the barista money without speaking)
• explicit (a lease agreement between landlord and tenant)

Question 3

Canadian contract law (aside from Quebec) is based on which type of law?

Answer 3

Common law

Question 4

Why are some areas of contract law codified into statute?

Answer 4

• to lower the need to research and cite numerous common law cases when defending contract terms
• to establish certain key terms or conventions (a way in which things are commonly done), such as rules of interpretation, so that the contract parties don’t need to explain (or sometimes include) those terms or conventions; instead, they are simply “read in” should the contract ever have to be interpreted

Question 5

The following describes what act?

a statute that governs the interpretation of contracts

Answer 5

Federal Interpretation Act

Question 6

The following are elements to what?

• offer and acceptance of the offer
• intention to create legally binding relations
• exchange of consideration
• legal capacity to contract
• compliance with legal formality requirements
• positivism vs judicial interventionism

Answer 6

legally enforceable contracts

Question 7

When parties have reached an agreement there is said to be consensus ad idem, which means what in Latin?

Answer 7

“meeting of the minds”
ad idem means “to the same thing”

Question 8

The following defines which contract rule?

to give words their plain and ordinary meaning unless to do so would lead to an absurdity

Answer 8

Golden Rule

Question 9

The following describes what contract term?

something of value that each party promises to provide and/or a detriment that each party promises to suffer

Answer 9

consideration

Question 10

The following describes what contract term?

a promise made in exhange for nothing; a promise not supported by consideration

Answer 10

gratuitous promise

generally not enforceable

Question 11

What are the two types of approach a judge can take to contract law?

Answer 11

• positivist (dictionary, literal meaning)
• judicial interventionist (social, economic and political values considered)