Doctrine of Part Performance Quiz

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Questions and Answers

Which of the following is NOT a requirement of the Doctrine of Part Performance?

The party has done or acquiesced to an act

The act indicates a contract was made

The act is not inconsistent with the alleged contract

The act must be recorded in writing (correct)

The common law version of part performance required acts to be 'unequivocally consistent' with the alleged contract.

True

What did the BCCA clarify regarding the requirements of the Doctrine of Part Performance?

Proof of acts indicating a contract was made, acts must not be inconsistent with the alleged contract, and the party must have done or acquiesced to these acts.

The incorporation of written terms often depends on whether the terms are considered ___ or surprising.

unfair Signup and view all the answers

Match the following cases to their significance regarding the Doctrine of Part Performance:

Schild v BC (1993) = Codified part performance, more liberal than common law Olsen v Gamache (1995) = Clarified test for acts indicating a contract Olsen test = Requires proof of acts and consistency with alleged contract Doctrine of Part Performance = Allows enforcement of land contracts without writing Signup and view all the answers

What is the main intent behind submitting a bid in response to an invitation to tender?

To indicate an intention to create contractual relations Signup and view all the answers

A comfort letter is legally binding on the parent company.

False Signup and view all the answers

What is the significance of a substantial deposit provided by bidders in the tender process?

It shows the seriousness of the bidders and their commitment to the bid. Signup and view all the answers

Comfort letters are commonly used in _____ loans.

business Signup and view all the answers

Match the following terms to their descriptions:

Bid = An offer made in response to an invitation to tender Comfort Letter = A non-binding assurance from a parent company Preliminary Agreement = An initial agreement that may or may not be binding Letter of Intent = A document indicating intention without legal obligation Signup and view all the answers

In the case of Kleinwort Benson Ltd v Malaysia Mining Corp Bhd, what was the ruling regarding the parent company's letter?

The letter was not legally binding Signup and view all the answers

Letters marked 'subject to contract' are usually binding agreements.

False Signup and view all the answers

What must courts determine about preliminary agreements?

Whether a future formal contract is a required condition or just a preferred documentation method for a binding deal. Signup and view all the answers

What is one essential part of a contract?

One party must make an offer and the other must accept it. Signup and view all the answers

A unilateral contract requires both parties to make promises.

False Signup and view all the answers

What does 'consideration' mean in the context of a contract?

something of value exchanged between parties Signup and view all the answers

For a contract to be legally valid, the terms must be __________ enough to understand what everyone agreed to.

clear Signup and view all the answers

Match the following terms with their definitions:

Offer = A willingness to enter into an agreement on certain terms Acceptance = Agreement to the terms of an offer Misrepresentation = Lying to get someone to sign a contract Duress = Threats or pressure to compel agreement Signup and view all the answers

In which case is the 'objective theory of contract formation' applied?

Smith v Hughes Signup and view all the answers

An illegal agreement can still form a valid contract.

False Signup and view all the answers

What can courts do if someone breaks a contract?

Order payment, force compliance, stop an action, or cancel the contract Signup and view all the answers

A __________ contract involves both parties making promises to each other.

bilateral Signup and view all the answers

Which of the following is a common reason for a contract to be invalid?

There was duress or pressure involved. Signup and view all the answers

What was the main issue in the case of Hawrish v Bank of Montreal?

Disagreement over an oral promise versus a written guarantee Signup and view all the answers

In the Fung v Decca Homes Limited case, the written agreement could be contradicted by an oral agreement.

False Signup and view all the answers

What was the amount overpaid by Fung to Decca Homes?

$150,000 Signup and view all the answers

In Hawrish v Bank of Montreal, the guarantee included a term stating that no _______ were made by the bank.

representations Signup and view all the answers

Match the following cases to their main outcomes:

Hawrish v Bank of Montreal = Written terms enforced over oral promises Fung v Decca Homes Limited = Written agreement could not be contradicted Signup and view all the answers

What was the nature of the agreement signed by Fung and Decca Homes?

A demand promissory note Signup and view all the answers

The court in Hawrish v Bank of Montreal ruled in favor of Hawrish.

False Signup and view all the answers

What was the condition under which Decca's lawyers were instructed to pay Fung?

Only if certain properties sold Signup and view all the answers

Which case established that unsigned documents may be incorporated if the recipient knows the terms exist?

Parker v South Eastern Railway Co. Signup and view all the answers

Signed documents are always binding, regardless of whether the signer has read them.

True Signup and view all the answers

What is the Parol Evidence Rule (PER)?

A legal rule that prevents parties from using evidence outside of a written contract to contradict or change the terms of that contract. Signup and view all the answers

In the case of __________, it was determined that very small print designed to conceal terms does not provide sufficient notice.

Spooner v Starkman Signup and view all the answers

Match the following cases with their key findings:

Parker = Opportunity to Read Mendelssohn v Normand = Timing of Signs Tilden Rent-A-Car Company v Clendenning = Onerous Terms without Adequate Notice McCutcheon v MacBrayne = Inconsistent History Signup and view all the answers

Which of the following conditions allows unsigned documents to be incorporated?

The recipient knows the document contains conditions Signup and view all the answers

Terms from a previous deal can be incorporated into a new contract only if both parties agree.

False Signup and view all the answers

What must a party show to have terms incorporated from previous dealings?

A regular history of using the same terms. Signup and view all the answers

In the case of __________, the signed liability release for white water rafting was upheld despite the death of a participant.

Delaney v Cascade River Holidays Ltd Signup and view all the answers

Which of the following is not an exception to the general rule that signed documents are binding?

Written agreement from both parties Signup and view all the answers

Which of the following statements may not be considered misrepresentation?

Sales talk that exaggerates qualities Signup and view all the answers

Misrepresentation requires that the claimant relied solely on the misstatement to enter into a contract.

False Signup and view all the answers

What is the traditional doctrine regarding non-disclosure in negotiations?

A party is not required to disclose material facts. Signup and view all the answers

A misstatement must be ______ to the decision of the claimant.

material Signup and view all the answers

Match the following cases with their significance regarding misrepresentation:

Andrews v Hopkinson = Sales talk is generally not misrepresentation. Smith v Land and House Property Corp = Opinion statements are not misrepresentation without expertise. Edgington v Fitzmaurice = Future intention statements are not statements of fact. Redgrave v Hurd = Materiality must be relevant to the decision to contract. Signup and view all the answers

What must happen for misrepresentation to induce the claimant to enter into an agreement?

The misrepresentation must be of such a nature that it's presumed to induce. Signup and view all the answers

Statements made about the future are always considered as misrepresentations.

False Signup and view all the answers

In which case did the courts specify that a party's own investigation may negate reliance on misrepresentation?

Attwood v Small Signup and view all the answers

Study Notes

Contracts CAN - Study Notes

A contract is a legally binding promise between parties (usually people or companies).
The main goal of contract law is to ensure everyone knows their legal obligations and can get help from courts if needed.
Four essential parts of a contract:
- Both parties must intend to create a legal agreement.
- One party must make an offer, and the other must accept it.
- Both parties must give something of value (consideration).
- The terms must be clear enough for everyone to understand what was agreed upon.
Types of contracts:
- Spoken, written, or implied through actions.
- Bilateral (both sides make promises) or unilateral (one side makes a promise for the other to act).
Things that can make a contract invalid:
- Misrepresentation (lying to get someone to sign).
- Honest mistakes by both parties.
- Events that make it impossible to complete the contract.
- Illegal agreements.
- Threats or pressure (duress).
- Taking advantage of someone's trust.
- Unfair deals where one side has too much power.
What happens if someone breaks a contract?
- Courts can order payment of money to compensate for losses, force someone to do what they promised, order someone to stop doing something, or cancel the contract completely.
Class 3: Offer and Acceptance I
- For a contract to exist, one party must make an offer and the other must accept it.
- Must have consensus ad idem (meeting of the minds).
- Courts evaluate offers objectively.
- Offers: "communication by the offeror to the offeree indicating a willingness to enter into an agreement with the offeree on certain terms".
Class 3: Preliminary negotiations vs offers
- "Invitation to treat" is an invitation to bargain; not an offer.
- Quotes are not offers.
Offers: Retail Sales
- Display of goods is an invitation to treat, not an offer.
Offers: Unilateral Contracts
Offers: Can be made to the public at large. Members of the public must complete certain acts to receive a reward (like finding a lost dog).
Offers: Tenders and Auctions:
- A call for tenders is an invitation to treat, not an offer unless it explicitly states the lowest bid will be accepted.
- In an auction, the bid is the offer, and the auctioneer's acceptance forms the contract.
Class 4: Offer and Acceptance II
- Acceptance occurs when conduct by A is an offer and B accepts that offer, indicating the contract's formation.
- Usually silence is not enough to constitute acceptance unless parties intended it
- There are exceptions where silence constitutes acceptance (e.g., when a party continues to use services).
Class 5: Offer and Acceptance III
- Must tell someone if you accept their offer
- Silence is usually not enough to amount to acceptance, however, there are exceptions (e.g, a contractual relationship that implicitly requires acceptance via a certain action).
Class 6: Certainty of Terms I
- A contract is not valid if its terms are unclear or cannot be determined with reasonable certainty
- Incomplete agreements may be enforceable if parts are clear or certain commercial contexts, and there is a mechanism laid out which can define the unclear parts later on.
Class 7: Certainty of Terms II
- Sometimes parties may agree that specific terms (like prices) will be agreed upon later.
- Courts look to see if there's a mechanism to handle the uncertainty of the terms or if it's obvious in that context that the terms can be filled in later.
Class 8: Intention to Create Legal Relations I
- For a contract to be valid, parties usually must intend to be legally bound.
- Commercial dealings are presumed to be legally binding.
- Social arrangements are not presumed to be legally binding.
Class 8: Intention to Create Legal Relations II
- Commercial agreements, parties stipulate if they are bound only in "honour".
- Construction tender cases.
Class 9: Intention to Create Legal Relations III
- Preliminary or "letter of intention" agreements are generally not binding unless the parties make it clear that they are intended to be binding.
Class 10: Bargaining in Good Faith I
- Parties may have a duty to negotiate in good faith, depending on the circumstances surrounding the context of the negotiation.
Class 10: Bargaining in Good Faith II
- Well established concept of "fair and equal treatment" in tendering.
- Circumstances and relationship of parties, past promises.
Class 11: Misrepresentation I
- When a false statement of fact is made and induces a party to enter a contract, the contract may be voidable.
- Remedies include rescission (reversal of the agreement) or compensation for damages depending on the parties' conduct and the nature of the misrepresentation (deceit or negligence).
Class 12: Agreements in Writing I & II
- The law requires certain agreements (like land transactions) to be in writing.
- The "Parol Evidence Rule" prevents parties from introducing evidence outside of the written document, unless there was a complete misunderstanding that can be demonstrated.
Class 13: Agreements in Writing II
- There are exceptions to the parol evidence rule (e.g., fraud, misrepresentation, and duress).
Class 14: Consideration and Form I
- Consideration: something exchanged between parties to justify enforcing a promise.
Class 14: Consideration and Form II
- Consideration: Pre-Existing Duty, can't use a pre-existing duty to avoid consideration.
Class 15: Waiver + Promissory Estoppel
- Waiver: Voluntarily giving up a right.
- Estoppel: Preventing someone from going back on a promise they made.
Class 16: Privity of Contract I & II -Only parties to a contract can sue or be sued under the contract, with exceptions.
Class 17: Misrepresentation II
Exceptions to the rule that misrepresentation doesn't exist: there are specific cases where reliance can be justified, like estoppel issues.
Class 18 & 19: Duress, Undue Influence + Unconscionability I,II & III
- These relate to situations where one party improperly forces another to enter into or modify a contract, using threats, pressure, or undue influence.
Disputes as to the terms of a contract.
Unclear or vague terms.
Misrepresented or false statements.

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Test your knowledge on the Doctrine of Part Performance with this quiz. Explore key aspects such as common law requirements, case significance, and the implications of comfort letters in tendering processes. Challenge yourself with matching terms and their descriptions.

Doctrine of Part Performance Quiz

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Questions and Answers

Which of the following is NOT a requirement of the Doctrine of Part Performance?

The common law version of part performance required acts to be 'unequivocally consistent' with the alleged contract.

What did the BCCA clarify regarding the requirements of the Doctrine of Part Performance?

The incorporation of written terms often depends on whether the terms are considered ___ or surprising.

Match the following cases to their significance regarding the Doctrine of Part Performance:

What is the main intent behind submitting a bid in response to an invitation to tender?

A comfort letter is legally binding on the parent company.

What is the significance of a substantial deposit provided by bidders in the tender process?

Comfort letters are commonly used in _____ loans.

Match the following terms to their descriptions:

In the case of Kleinwort Benson Ltd v Malaysia Mining Corp Bhd, what was the ruling regarding the parent company's letter?

Letters marked 'subject to contract' are usually binding agreements.

What must courts determine about preliminary agreements?

What is one essential part of a contract?

A unilateral contract requires both parties to make promises.

What does 'consideration' mean in the context of a contract?

For a contract to be legally valid, the terms must be __________ enough to understand what everyone agreed to.

Match the following terms with their definitions:

In which case is the 'objective theory of contract formation' applied?

An illegal agreement can still form a valid contract.

What can courts do if someone breaks a contract?

A __________ contract involves both parties making promises to each other.

Which of the following is a common reason for a contract to be invalid?

What was the main issue in the case of Hawrish v Bank of Montreal?

In the Fung v Decca Homes Limited case, the written agreement could be contradicted by an oral agreement.

What was the amount overpaid by Fung to Decca Homes?

In Hawrish v Bank of Montreal, the guarantee included a term stating that no _______ were made by the bank.

Match the following cases to their main outcomes:

What was the nature of the agreement signed by Fung and Decca Homes?

The court in Hawrish v Bank of Montreal ruled in favor of Hawrish.

What was the condition under which Decca's lawyers were instructed to pay Fung?

Which case established that unsigned documents may be incorporated if the recipient knows the terms exist?

Signed documents are always binding, regardless of whether the signer has read them.

What is the Parol Evidence Rule (PER)?

In the case of __________, it was determined that very small print designed to conceal terms does not provide sufficient notice.

Match the following cases with their key findings:

Which of the following conditions allows unsigned documents to be incorporated?

Terms from a previous deal can be incorporated into a new contract only if both parties agree.

What must a party show to have terms incorporated from previous dealings?

In the case of __________, the signed liability release for white water rafting was upheld despite the death of a participant.

Which of the following is not an exception to the general rule that signed documents are binding?

Which of the following statements may not be considered misrepresentation?

Misrepresentation requires that the claimant relied solely on the misstatement to enter into a contract.

What is the traditional doctrine regarding non-disclosure in negotiations?

A misstatement must be ______ to the decision of the claimant.

Match the following cases with their significance regarding misrepresentation:

What must happen for misrepresentation to induce the claimant to enter into an agreement?

Statements made about the future are always considered as misrepresentations.

In which case did the courts specify that a party's own investigation may negate reliance on misrepresentation?

Study Notes

Contracts CAN - Study Notes

Studying That Suits You

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