Limitation Periods And Contracts

Question 1

What does statute barred mean

Answer 1

When an action is taken beyond the prescribed time period

Question 2

What were the limitation periods before the Limitations Act in 2002

Answer 2

There were various limitation periods that usually began when the cause of action arose (when incident occurred). Sometimes period began when plaintiff discovered or should have discovers the basis for the claim

Question 3

What are the main features of the Limitation Act 2002

Answer 3

1. Standard 2 year limitation period for most civil actions. Starts when plaintiff discovered or ought to have discovered claim
2. Ultimate limitation period of 15 years regardless of when claim was discovered

There are exceptions to 2 year rule like fraud or sexual assault which have no limitation period

Question 4

What are the key takeaways of the Grant Thornton LLP v. New Brunswick case regarding limitation period

Answer 4

Claim is discovered when plaintiff has enough knowledge to reasonably suspect claim, not when they have complete evidence.

Question 5

What are the limitation periods for businesses

Answer 5

1. Business to business agreements are permitted to shorten 2 year period but cannot extend it
2. No one can change 15 year ultimate limitation period

Question 6

What is the effect of acknowledgment or partial payment of debt on the limitation period

Answer 6

If debtor acknowledges liability in writing or makes a partial payment of debt, then the 2 year limitation period resets

Question 7

Who counts as a vulnerable individual that can have the limitation period suspended

Answer 7

1. Minors - until of age or litigation guardian is appointed
2. Persons under legal incapacity - until regain capacity or litigation guardian appointed

Question 8

5 things needed for a contract to be binding and enforceable in common law jurisdictions in Canada (essential items)

Answer 8

1. An offer is made and accepted
2. Mutual intent to enter into contract
3. Consideration
4. Capacity to contract
5. Lawful purpose

Question 9

What does assignment of rights mean in contract law

Answer 9

Contractual benefits can be assigned to a 3rd party by one of the contracting parties without the consent of the other party to the contract.

That’s why explicit indication of you can’t assign rights to 3rd party without written consent of contracting party

Question 10

What are the key takeaways of the Bhasin v. Hrynew case when it comes to contracts

Answer 10

1. Contracting parties must act honestly and not mislead each other
2. Good faith duty applies only after a contract is formed, not during negotiations.

Question 11

What are they key takeaways of the CM Callow Inc v. Zollinger case regarding contracts

Answer 11

1. A party can’t actively mislead the other, even if not false statements are outright made
2. If a party knows about a false belief about contract performance and they benefit from it, failure to correct it can be considered dishonest
3. Even if contract allows termination, how a party exercises that right must be truthful and fair
4. Duty of honesty is a general principle under Canadian contract law

Question 12

Are verbal contracts enforceable

Answer 12

Yes, unless writing is required by statute (land, certain guarantees)

Question 13

What is an irrevocable offer

Answer 13

A legally binding promise to keep an offer open for a specific period where the offeror cannot withdraw it before the specified date and time.

Question 14

What is an option contract

Answer 14

Agreement that gives buyer the right, but not obligation, to buy/sell asset at specific price on or before a certain date

Question 15

What is an option contract

Answer 15

Agreement that gives buyer the right, but not obligation, to buy/sell asset at specific price on or before a certain date

Question 16

When does acceptance of an offer take place when using mail

Answer 16

Acceptance takes effect when posted

Question 17

When does an offer acceptance take place when delivered through telegraph

Answer 17

At the time the message is delivered to the telegraph operator

Question 18

Is silence as acceptance a thing

Answer 18

No. Silence doesn’t constitute acceptance

Question 19

What is the closest and most real connection test

Answer 19

If no law stated or implied, law of jurisdiction with strongest connection to contract applies

Question 20

What factors do courts consider to determine jurisdiction for a contract

Answer 20

1. Place where contract was negotiated and signed
2. Location of contract performance
3. Place where payments are made
4. Residency or business location of the parties
5. Location of subject matter

Question 21

What is a letter of intent? Is it enforceable

Answer 21

Letter used to express interest in proceeding with a particular transaction. Generally not enforceable

Question 22

What are all the essential terms to make a contract legally enforceable

Answer 22

Offer and acceptance, consideration, parties to the contract, subject matter, price or payment terms, timeframe and performance obligations, jurisdiction and governing law, termination and breach consequences.

Question 23

What is consideration in contract law

Answer 23

Represents something of value that is exchanged by contracting parties. Can be money.

Question 24

What is a gratuitous promise

Answer 24

An irrevocable offer without consideration or a seal

Question 25

What is equitable estoppel

Answer 25

Argument that can be used by a party to a contract who has relied to their detriment in a representation or action by another party. Used to prevent other party from acting inconsistently with earlier actions. Prevents from going back on a promise and prevents unfair enforcement.

Question 26

Can contracts with minors be enforceable

Answer 26

Only enforceable by the minor but not by the other party.

Question 27

Can contracts with mentally incompetent people be enforceable

Answer 27

They’re unenforceable by the other party provided awareness of mental incompetence

Question 28

Contracting with intoxicated people

Answer 28

If intoxicated when entering contract, it can be unenforceable against them, only if they reject contract promptly once sober.

Question 29

Contracting with corporations

Answer 29

Unenforceable by other party if clearly beyond the power of person entering contract.