CHAPTER 8

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1. Exceptions to the rule that a minor should not be bound by a contract are made when

the contract is for necessaries
there is a beneficial contract of service
there is a permanent or ongoing relationship between the parties
a & b
all of the above

2. The only province that has legislation making a minor's contract unenforceable against the minor without regard to the subject-matter of the contract is

British Columbia
Alberta
Ontario
Nova Scotia
Newfoundland

3. As applied regarding the Statute of Frauds, a contract "not to be performed within one year" is

a contract that provides for performance of obligations to begin after one year has elapsed
a contract that cannot be completed within one year
a contract that was entered more than one year before legal proceedings to enforce it have begun
an illegal contract
a category of sale of goods contract

4. A person who has signed a written agreement believing its contents to be different from what that actually were will be bound by the actual contents of the document unless

she is blind
she is illiterate
she is insane
any of the above
none of the above

5. The establishment of law regarding unconscionability of contracts is a matter of

federal jurisdiction
provincial jurisdiction
municipal jurisdiction
criminal law
all of the above

6. Using a threat of physical harm to induce a person to enter a contract is an example of

unconscionability
undue influence
duress
misrepresentation
mistake

7. A contract entered as a result of a misrepresentation having been made by one of the parties is

illegal
null
void
voidable
enforceable

8. In general, a contract that is entered by a minor is

illegal
null
void
voidable
enforceable

9. A presumption that a contract has been entered as a result of undue influence is applied when

the parties are professional and her client
the parties are dealing at arm's length
one party is a company and the other is a person
neither party is a company
both parties are companies

10. Rescission is

an error made by one or both parties that seriously undermines a contract
a false statement of fact that causes someone to enter a contract
a remedy that results in the parties being returned to their precontractual positions
unfair manipulation that compromises someone's free will
a court order that attempts to correct errors before enforcing a contract