Study 8 – Contract Law – Civil Code of Quebec Summary Notes Download
Terms | Definitions |
|---|---|
 Define contract. | contract is an agreement that one party will perform some service or benefit for the other party who generally, agrees to pay for it, although payment, in and of itself, is not essential for a contract to exist. |
| How does a contract of adhesion differ from a contract of mutual agreement? | a contract of adhesion is drawn up by one of the parties and is not negotiable whereas a contract of mutual agreement is. |
| What are the FOUR (4) requisites of a valid contract? | 1. consent 2. capacity to contract 3. cause of contract 4. object of contract |
| What are the TWO (2) parts of consent? | offer and acceptance. |
| When and how can an offer be revoked? | the offer may be revoked at any time before acceptance is received by the offeror. |
| Explain the difference between a determinate person and an indeterminate person. | a determinate person is a particular individual whereas an indeterminate person would be a general group such as the public at large. |
| Define counter-offer and give examples. | When an offer is made and the person to whom it is made accepts it in theory but wants substantial changes in the conditions, that would in effect be a counteroffer. |
| Give THREE (3) examples of when lesion occurs. | Lesion is defined as an economic error on the value of the prestation or a damage to the interests of a party to the contract. 1. lesion occurs when a minor or someone incapable of looking after his or her affairs cannot financially afford the object of the contract |
| Give THREE (3) examples of tainted or imperfect consent. | a person whose consent has been tainted or obtained by illegal means may have the contract set aside or voided. |
| Name TWO (2) classes of people who have limited capacity to contract. | 1. minors 2. person of diminished mental capacity resulting from illness, accident or age. |
| Define emancipation and explain how it can be obtained. | when a minor attains the age of 16, they or their tutors may apply to the court for emancipation. |
| What is the purpose of tutors or curators, and who appoints them? | appointed by the court to represent minors/disabled people in the management of their affairs. |
| Give TWO (2) examples of prodigality. | a person who is unable to to properly manger his or her affairs. i.e. an alcoholic who spends his whole paycheque on wine and a lavish lifestyle i.e. a person of old age who has money saved but who is persuaded to give it away without valid reason |
| Explain the difference between a natural person and a legal person. | individuals are natural persons whereas a group of individuals such as corporations are legal persons. |
| Explain the cause of contracts. | the cause (consideration) of a contract is the prime reason why a person agrees to enter into a contract. |
| Define the object of a contract. | each party to the contract must have some obligation to perform. |
| Explain the difference between absolute nullity and relative nullity. | relative nullity is a voidable contract whereas absolute nullity is a void contract. |
| What is probably the most important point to keep in mind when drafting a contract? | should clearly state all terms in language that all parties understand. If there is confusion, the party who drafted the contract will be interpreted against. |
| Name SIX (6) ways a contract can be terminated. | 1. payment 2. expiry of an extinctive term 3. novation - replacement of obligation with new obligation 4. prescription - expiration of any time periods set by law. 5. compensation - 6. confusion |
Terms | Definitions |
|---|---|
| An agreement between legally capable parties for a consideration demonstrating content to do something which is legal. Is the definition of what? | A contract. |
| Consent is one requisite to binding a contract, what are the three others? | 1) Object of contract 2) Capacity to contract 3) Cause of contract |
| Explain what it means to annul a contract. | - Void it - Or treated it as though it never existed |
| Contractual obligations can be extinguished through mutual consent of the parties. List 5 other reasons they can be extinguished in Quebec. | - Discharge of a debtor - Impossibility of performance - Release - Confusion - Compensation - Prescription - Novation - Expiry of extinctive term - Payment of the obligation |
| An apartment lease is an example of what type of contract? | Contract of adhesion. A contract between two unequal bargaining partners and does not allow for negotiation. |
| Allan is no longer able to manage is own his own affairs due to an illness that impairs his mental capabilities. Who would be appointed to represent Allan? | A tutor or curator would be appointed. |
| Negotiation of the terms between two contracting parties is what type of contract? | Contract of mutual agreement. |
| When is a lesion a cause of nullity in a contract? | When a minor or someone incapable of looking after his or her affairs cannot financially afford the object of the contract. |
| Under The Civil Code of Quebec, a determinate person is? | A specific individual. |
| The Civil Code of Quebec say "Consent may only be given in a free and enlightened manner. It may be vitiated by error, fear or lesion". Explain the interpretation of this article. | Persons entering into a contract must do so of their own free will. They must not be misled, coerced or threatened by fear of violence to themselves or others. They must have the mental capacity to understand what their commitment is. |
| Explain the difference between absolute nullity and relative nullity. | Absolute nullity- means the contract is void. All parties in the contract can claim absolute nullity. Cannot be affirmed. Relative nullity- means the contract is voidable. The contract can only be voided at the request of the party that the law aimed to protect. |
| Contracts must be written in easily understandable terms. The court will always interpret contracts in favor of? | The person who did not write the contract. |
| A legal situation that occurs when a debtor becomes his own creditor or a creditor becomes his own debtor is called? | Confusion. |
| Maggie is 70 and has been saving her money her entire life. She is no longer able to properly manage her money anymore. But is persuaded to give it all away without any reason to people who simply ask for who don't have a valid claim to the money. Maggie is consider what? | Prodigal. A person who is unable to manage his or her affairs. |