Legality, Statute Of Frauds, Misrepresentation, Duress, Undue Influence, Mistake

Question 1

An employer seeking to enforce a non practice or non compete agreement must persuade the court of

Answer 1

1. The terms are reasonable between parties
2. Public interest wouldn’t be adversely affected if enforced

Question 2

What is a non practice clause

Answer 2

Restricts professional from practicing their profession in a specific area after leaving organization. It limits competition in professional fields.

Question 3

What is a non compete clause

Answer 3

It prohibits an employee from working for or starting a competing business after leaving. It prevents direct competition. Prohibited in Ontario.

Question 4

What is a non solicitation clause

Answer 4

Restricts employee from soliciting former clients, customers or employees after leaving. Protects business relationships and workforce. More likely to be enforced than non compete

Question 5

What is a NDA

Answer 5

Prohibits employee from sharing confidential information, trade secrets, or proprietary data. It protects sensitive business info. It is fully enforceable if clearly defined and reasonable.

Question 6

What is a garden leave clause

Answer 6

Requires employee to remain employed but not work for a period of time while receiving pay before joining competitor. It prevents the immediate competition while keeping employee on payroll

Question 7

What is a training reimbursement clause

Answer 7

Requires employee to reimburse employer for training costs if they leave within a certain period. It recoups investment in employee development.

Question 8

Express contract

Answer 8

Terms explicitly stated either written or oral

Question 9

Implied contract

Answer 9

Terms inferred from actions or circumstances

Question 10

Quasi contract

Answer 10

Imposed by law to prevent unjust enrichment (not a real contract)

Question 11

Valid contract

Answer 11

Legally binding and enforceable

Question 12

Void contract

Answer 12

Lacks legal enforceability from the start such as an illegal contract

Question 13

Voidable contract

Answer 13

Can be rescinded by one party due to defects (fraud, undue influence)

Question 14

Unenforceable contract

Answer 14

Valid but can’t be executed due to technicalities (lack of written proof)

Question 15

Executed contract

Answer 15

Fully performed by all parties

Question 16

Executory contract

Answer 16

Still has outstanding obligations to be performed

Question 17

Unilateral contract

Answer 17

Only one party makes a promise

Question 18

Bilateral contract

Answer 18

Both parties make promises to each other

Question 19

Legal contract

Answer 19

Complies with all laws and is enforceable

Question 20

Illegal contract

Answer 20

Involves illegal activities and is void

Question 21

Formal contract

Answer 21

Requires specific legal formalities like contracts under seal

Question 22

Simple contract

Answer 22

No special form required. Can be oral or written

Question 23

What does the Statute of Frauds say when it comes to contracts

Answer 23

Certain types of contracts must be in writing to be enforceable such as contract relating to ownership of land

Question 24

What is the key purpose of the Statue of Frauds

Answer 24

1. Prevents fraudulent claims in contractual disputes
2. Requires written evidence for significant contracts to ensure clarity and enforceability.
3. Protects parties from false claims if verbal agreements.

Question 25

What is promissory estoppel

Answer 25

Legal doctrine that prevents a party from reneging on a promise when another party has reasonably relied on that promise to their detriment. Applied even if no formal contract exists or contract is unenforceable under normal contract law principles.

Question 26

What are the key elements of promissory estoppel

Answer 26

1. A clear promise 2. Reasonable and detrimental reliance 3. Injustice if promise is not enforced

Question 27

How do equitable estoppel and promissory estoppel differ in purpose

Answer 27

Equitable prevents a party from denying facts or right they previously induced reliance on while promissory prevents a party from breaking a promise when another has relied on it.

Question 28

What is a misrepresentation

Answer 28

A false statement or assertion of fact

Question 29

What happens to contracts induced by misrepresentation

Answer 29

Court can treat contract as voidable and have it rescinded

Question 30

Innocent misrepresentation

Answer 30

False assertion made by a party who doesn’t appreciate the statement is false. Causes recession of contract and claim for compensation, can be liable under negligent misrepresentation

Question 31

Fraudulent misrepresentation

Answer 31

Statement made knowingly, without belief in its truth, recklessly/careless whether it be true or false. Causes rescission of contract, claim for compensation, potential liability for negligence Can have criminal and civil consequences.

Question 32

When does fraudulent misrepresentation result in criminal consequences

Answer 32

1. Misrepresentation was made knowingly and with intent to defraud 2. Victim suffered financial loss due to fraud Can be tried summarily or as an indictable offence

Question 33

Duress in contracts

Answer 33

If contract induced by duress, it is voidable. It can be directed at the contracting party, or close relative.

Question 34

Undue influence

Answer 34

Occurs when a party to contract dominates the free will of another party to coerce the dominated party into an unfair contract

Question 35

What is a common mistake

Answer 35

Contracting parties reaching agreements but recorded provisions of agreement inaccurately in written contract. Only 1 party can apply to court for order of rectification

Question 36

Unilateral mistake

Answer 36

Mistake made by only one party to a contract

Question 37

What decision was made on the Ron Engineering case pertaining mistakes

Answer 37

1. Court ruled that a binding “Contract A” is formed when a contractor submits a bid in response to a call for tenders 2. If bid withdrawn after submission but before acceptance, bidder may lose deposit 3. Main construction contract, “contract B”, formed only when owner formally accepts bid

Question 38

Contract A

Answer 38

Forms when bid is submitted. Binds bidder to process and rules of fairness.

Question 39

Contract B

Answer 39

Forms only upon formal acceptance of bid. Governs actual construction work.

Question 40

Contract B

Answer 40

Forms only upon formal acceptance of bid. Governs actual construction work.