Part 1 - Law And Estate Planning Flashcards
(22 cards)
What are the elements required for a contract to be valid and enforceable?
- intention to create a legal contract
- a valid offer and acceptance
- consideration
- capacity to contract
These elements ensure that a contract is legally binding.
What are the benefits of self-drafting a contract?
- Cheaper
- Quicker
Self-drafting can save costs but may come with risks.
What are the risks associated with self-drafting a contract?
- Non-enforceability
Poorly drafted contracts may not hold up in court.
Under what circumstances can an offer be terminated?
- Through rejection or counteroffer
- Death, incapacitation, or bankruptcy of either party
- Passage of time
- Revocation prior to acceptance
These factors can invalidate an offer before it is accepted.
What is a voidable contract?
A contract that is initially valid and enforceable until declared void by one party.
Common scenarios include contracts involving minors or those signed under duress.
What is a void contract?
A contract that is invalid and unenforceable from its inception.
Examples include contracts contrary to statute or public policy.
What are some methods by which a contract may be terminated?
- Performance of contractual obligations
- Breach of contract
- Discharge by agreement or right
- Frustration
- Operation of law
- Condition precedent or subsequent
Different methods can lead to the end of a contractual relationship.
What is defined as a lawful union for civil purposes in Canada?
Marriage, as per the federal Civil Marriage Act.
This definition excludes all others and emphasizes the legal nature of the union.
What constitutes a common-law partnership in Canada?
Two people living in a conjugal relationship, recognized for both opposite-sex and same-sex couples.
Common-law partners may be considered separated after 90 days of living apart due to a relationship breakdown.
What is a separation in the context of marriage?
A voluntary decision by married or unmarried couples to live separate and apart with no intention of reconciling.
This is a precursor to divorce but does not legally end the marriage.
What is an uncontested divorce?
A divorce where both parties agree to divorce and the proposed division of assets.
This type of divorce is generally simpler and faster.
What are domestic contracts?
Formal written contracts regulating rights and obligations during a relationship or its termination.
They include cohabitation agreements and marriage contracts.
Why is independent legal advice important for domestic contracts?
To ensure that the contract is binding and that both parties understand their rights.
Some jurisdictions require legal advice for enforceability.
What are common provisions in a separation or divorce agreement?
- Promise to live separate and apart
- Child and spousal support agreements
- Parenting time and decision-making responsibilities
- Division of property
- Duration and termination terms
These provisions help clarify the terms of separation or divorce.
What is child support based on?
- Agreement between parents
- Federal Child Support Guidelines
- Provincial Child Support Guidelines
The calculation considers various factors including income and parenting arrangements.
What does the federal Divorce Act require regarding child support?
The court must ensure reasonable arrangements for children’s support are made.
This is crucial in divorce proceedings.
What is the purpose of the Spousal Support Advisory Guidelines?
To suggest appropriate ranges of spousal support in various situations.
These guidelines aim for predictability in support payments.
What happens if support payments are not made?
Government agencies can collect payments through various methods.
This may include direct debit, garnishment, or suspension of licenses.
What is family property?
All real and personal property acquired during marriage, subject to division upon relationship breakdown.
Excluded property is not considered in this division.
What is a net family property calculation?
The total value of family property minus debts and liabilities.
This determines how property is divided between spouses.
What are the CRA’s requirements for a tax-deferred transfer of capital property?
Transfers must be direct and done under a written agreement or court order.
This applies to pension or registered accounts during a relationship breakdown.
What are the tax implications of withdrawing funds from a registered account?
Withdrawals may be considered income, leading to potential tax consequences.
Over-contributions to RRSPs may also result in penalties.
