Unit 6: Contract law Flashcards
Statute law
legislation or regs enacted within a jurisdiction
enacted at municipal, prov, federal level
Case law
decisions where court interpreted legislation applied to specific set of facts; precedent rather than statute law
Common law
historical customs and accumulated court decisions evolved through legal system to become law “law of the land”
Magna Carta
Origin of English common law
“Great Charter”
written in 1215; limited power of king
Due process
requires the govt to respect legal rights of person according to law
Secession
Separation from existing government
Colonies of Canada
acquired by direct settlement, conquest, secession
Quebec Act
1774; enlarged boundaries of province including Ontario (Upper Canada)
Constitution Act
Separated Canada in 1791 into Upper and Lower Canada
Property and Civil Rights act
1792
Legislature of Upper Canada
Repealed French law precedence
Feudalism
Main form of social organization in medieval europe
British North America Act 1867
Now Constitution Act 1867
Canada became a confederation of provinces
they had rights over property except federal stuff
Doctrine of tenure
during feudalism, king made “landlords” and they sublet to others
Tenure - holding land subject to superior right rather than ownership (like from the Crown)
Doctrine of estates
Interest in properties from disputes in royal courts
Estate: nature, degree, extend, duration of person’s interest in land
3 types of estates in land
Fee simple: freehold; absolute owner; comes with Bundle of Rights (possession, use, enjoyment, sale)
Leasehold: lease; rights of control/disposition detailed in lease agreement
Life estate: tenant has interest in land for duration of life; then reverts to fee simple owner
Dower Act
Confers life interest to spouse who lived on property but not on title; so when other spouse dies the non-titled spouse gets house; only in legal marriage
Compliance with Dower Act
One of following:
Obtain untitled spouses consent
Title owner does affidavit
Untitled spouses release
Statute of frauds
English common law
350 years old
certain contracts be in writing and be signed (binding)
- land sales, debts, >12 months work
Contract
binding promise made by one party to another that courts can enforce
Categories of contracts
method of creation
relationship formed
obligations
Contract classifications
Bilateral: one party’s duty to act in exchange for another
Unilateral: one party makes obligation to perform act or promise w/out any return of performance
Fulfilling contracts
Executory: one+ obligations has yet to be completed or performed
Executed: all obligations have been performed
Genuine consent - mistakes
Common mistake: all parties held same wrong belief
Mutual mistake: each party makes a mistake but are different
Unilateral mistake: One party is wrong, and the other doesn’t fix it
Types of defects
Patent: visible
Latent: non-visible
Material latent: fundamental and non-visible
Duress
Absence of free will and pressured with force or violence
Undue influence
inequity of power or influence to induce other party to enter into contract
Validity of contracts
Valid: essential elements all present
Void: missing essential element, no legal effect
Voidable: challenged due to lack of essential element
Illegal: contravenes a law or for criminal activity
Conditions of contract
Conditions precedent: for real estate. specific expiry date and time
Conditions subsequent: conditions presumed to be met by deadline if no notice provided to the contrary
Contract terms
Terms are different from conditions
Are essential details and represent points of agreement: date takes effect, duration; chattels (fridge, stove etc); work to be done (replace window).
Privity of contract
Relationship between contracting parties
only original parties to contract can enforce or be bound by it; third parties have no rights
Exceptions: covenants on land; agency; trusts; assignments
Termination of contract
Performance
Mutual agreement
Frustration (house destroyed by fire)
Operation of law (brokerage license expires)
Breach (refuse to perform, impossible to perform, failure to perform)
Remedies for breach
monetary compensation
quantum meruit (reasonable value)
specific performance (court compels them to carry out promise)
injunction (prevent from doing thing elsewhere)
Appendices
Everything except a schedule for Dower rights; used by the seller
Addenda
Docs attached to and made part of the original contract
Modify, supplement or add elements that have already been agreed to
Can be explanatory, information, or other(split cost of repairs for something)
Amendments to original contract
Change agreed on information or terms
Consent by all parties needed
Use separate form and reference original doc, all parties sign
Add “all other terms and conditions remain the same”
Contract conditions
If conditions not met within timeframe, contract is terminated
Waivers used if removing condition even if not fulfilled
Unilateral termination of agreement
Failed to act in clients best interest
Failed to obey clients lawful instructions
Failed to duty of care
…duty of loyalty
…conflict of interest undisclosed
…duty of confidentiality
Power of attorney
Donor: person appointing another to act for them
Attorney: appointed to act
General: no limits
Special: specific or limited powers
Immediate: financial and legal decisions (terminates on death or loss of mental capacity)
Enduring: financial and legal if incapable, incapacitated or something else = springing POA
Guardians
Court appointment for an adult with no financial powers
Trustee
Legal agreement to hold assets like cash and property
Usually manage finances and properties and belongings; court order
also in cases of bankruptcy
Assignee / Assignor
Assignee: person w/ interest or right in property that is transferred to them
Assignor: transfers rights to assignee
Assignment: legal sales transaction, made under Statute of Frauds
Corporations
Have all rights, powers, privileges of a person
Detailed in its articles of incorporation
Can sign docs w/ legal seal
Electronic transactions act (AB)
Proclaimed in 2003 but not judicially considered yet
created to ensure electronic records and transactions have same validity and enforced like paper transactions
Exceptions:
- wills/codicils
- trusts from above
- end POA
- PD
- transfers of land interests
- guarantees
- Negotiable instruments
- Records prescribed
