Lecture 4 Flashcards
what is the diference between the business corporations act and the canada business corporations act?
Business Corporations act can only carry on business within that province, the Canada business corporations act can carry on business in all provinces in canada
what are bylaws?
- Rules that govern a corporation
- says the corporation has the ability to contract, but may or may not limit capacity
what is the certificate of incorporation?
the birth certificate of the corporationl
What is a promissory note?
- An I Owe You, a promise to pay back
What is a Debenture Security? (Floating charge)
Its like a mortgage but stronger. Bank controls this when loans are made to ensure they’re paid back
what is subscribed capital?
amount of shares that the corporation sold
what does Ltd. mean?
means the liability of shareholders is limited only to money they still owe for shares (meaning the investment in the corproation{)
if you hold shares in a corporation what can you do with them?
You can sell to anyone within the articles and bylaws
what are the downsides to a sole proprietorships and partnerships?
you are personally liable and everything you own is up for grabs
What is the reason why a corporation must end its name in a certain way?
to forewarn the public that they are dealing with a corporation, not a person (shareholders{)
what are the two types of corporations?
- Private Corporation: cannot sell any shares to the public
Public corporation: can sell shares to the public at large
what is a corporations capacity to contract
a corporation has a capacity to enter into a contract, unless restricted by bylaws
which professions can’t incorporate?
legal, dental and medical
what must a mutual agreement have?
1) offer
2) acceptance
what are the 4 requirements of an acceptance of a contract?
1) unconditional acceptance (conditional acceptance = counter offer which destroys/voids the original offer
2) communicated
3) manner required
4) time period required
a price on a garment is not an offer what is it?
an invitation to treat. consumer offers and store either accepts or rejects the offer. the consumer is always the one that makes the offer
what is an unconditional acceptance?
one which does not change any terms of offer
what is a conditional acceptance?
any change to the terms of the offer (counter offer or counter proposal) its not acceptance.
-the offer can be accepted but the person making the offer becomes the offeror
when can an offer be withdrawn?
anytime before it is accepted, an offer once accepted cannot be withdrawn (breach of contract)
what is the postal acceptance rule?
communication of acceptance takes place the moment a letter is posted
what are the 5 items that void genuine intention?
1) fraud
2) misrepresentation
3) duress
4) undue influence
5) mistake
what is fraud?
- a false representation of material facts made with knowledge of its falsity
- malum perse - “bad within itself”
what is a false representation?
any representation which is not true, no matter how the representation comes about.
- this is a civil wrong that voids a contract
- representation can be stated or implied (by conduct of the parties)
- can have representation without saying anything (i.e. not answering questions or indireclty avoiding questions{)
what is uberrima fidel? (Utmost faith)
one is obligated to disclose everything they know about something, even if you’re told you don’t need to say anything
