Unit 6: Contract law

Question 1

Statute law

Answer 1

legislation or regs enacted within a jurisdiction
enacted at municipal, prov, federal level

Question 2

Case law

Answer 2

decisions where court interpreted legislation applied to specific set of facts; precedent rather than statute law

Question 3

Common law

Answer 3

historical customs and accumulated court decisions evolved through legal system to become law “law of the land”

Question 4

Magna Carta

Answer 4

Origin of English common law
“Great Charter”
written in 1215; limited power of king

Question 5

Due process

Answer 5

requires the govt to respect legal rights of person according to law

Question 6

Secession

Answer 6

Separation from existing government

Question 7

Colonies of Canada

Answer 7

acquired by direct settlement, conquest, secession

Question 8

Quebec Act

Answer 8

1774; enlarged boundaries of province including Ontario (Upper Canada)

Question 9

Constitution Act

Answer 9

Separated Canada in 1791 into Upper and Lower Canada

Question 10

Property and Civil Rights act

Answer 10

1792
Legislature of Upper Canada
Repealed French law precedence

Question 11

Feudalism

Answer 11

Main form of social organization in medieval europe

Question 12

British North America Act 1867

Answer 12

Now Constitution Act 1867
Canada became a confederation of provinces
they had rights over property except federal stuff

Question 13

Doctrine of tenure

Answer 13

during feudalism, king made “landlords” and they sublet to others
Tenure - holding land subject to superior right rather than ownership (like from the Crown)

Question 14

Doctrine of estates

Answer 14

Interest in properties from disputes in royal courts
Estate: nature, degree, extend, duration of person’s interest in land

Question 15

3 types of estates in land

Answer 15

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

Question 16

Dower Act

Answer 16

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

Question 17

Compliance with Dower Act

Answer 17

One of following:
Obtain untitled spouses consent
Title owner does affidavit
Untitled spouses release

Question 18

Statute of frauds

Answer 18

English common law
350 years old
certain contracts be in writing and be signed (binding)
- land sales, debts, >12 months work

Question 19

Contract

Answer 19

binding promise made by one party to another that courts can enforce

Question 20

Categories of contracts

Answer 20

method of creation
relationship formed
obligations

Question 21

Contract classifications

Answer 21

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

Question 22

Fulfilling contracts

Answer 22

Executory: one+ obligations has yet to be completed or performed

Executed: all obligations have been performed

Question 23

Genuine consent - mistakes

Answer 23

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

Question 24

Types of defects

Answer 24

Patent: visible

Latent: non-visible

Material latent: fundamental and non-visible

Question 25

Duress

Answer 25

Absence of free will and pressured with force or violence

Question 26

Undue influence

Answer 26

inequity of power or influence to induce other party to enter into contract

Question 27

Validity of contracts

Answer 27

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

Question 28

Conditions of contract

Answer 28

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

Question 29

Contract terms

Answer 29

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).

Question 30

Privity of contract

Answer 30

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

Question 31

Termination of contract

Answer 31

Performance Mutual agreement Frustration (house destroyed by fire) Operation of law (brokerage license expires) Breach (refuse to perform, impossible to perform, failure to perform)

Question 32

Remedies for breach

Answer 32

monetary compensation quantum meruit (reasonable value) specific performance (court compels them to carry out promise) injunction (prevent from doing thing elsewhere)

Question 34

Appendices

Answer 34

Everything except a schedule for Dower rights; used by the seller

Question 35

Addenda

Answer 35

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)

Question 36

Amendments to original contract

Answer 36

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"

Question 37

Contract conditions

Answer 37

If conditions not met within timeframe, contract is terminated Waivers used if removing condition even if not fulfilled

Question 38

Unilateral termination of agreement

Answer 38

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

Question 39

Power of attorney

Answer 39

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

Question 40

Guardians

Answer 40

Court appointment for an adult with no financial powers

Question 41

Trustee

Answer 41

Legal agreement to hold assets like cash and property Usually manage finances and properties and belongings; court order also in cases of bankruptcy

Question 42

Assignee / Assignor

Answer 42

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

Question 43

Corporations

Answer 43

Have all rights, powers, privileges of a person Detailed in its articles of incorporation Can sign docs w/ legal seal

Question 44

Electronic transactions act (AB)

Answer 44

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