LSO Barrister Business Law & Contracts

Question 1

Under the Ontario Business Corporations Act (OBCA), what is the minimum number of directors required for a private company?

Accepted Answer

One

Answer

None

Answer

Two

Answer

Three

Question 2

Under Canadian contract law, what are the essential elements for a valid and enforceable contract?

Accepted Answer

Offer, acceptance, consideration, and intention to create legal relations

Answer

Offer, acceptance, and writing

Answer

Offer, acceptance, and witness signatures

Answer

Offer, good faith negotiations, and consideration

Question 3

What is the legal concept of 'privity of contract' in Ontario?

Accepted Answer

Only parties to a contract can sue or be sued under it

Answer

The confidentiality of contract terms

Answer

The requirement that contracts be in private writing

Answer

The priority of one contract over another

Question 4

Under the Ontario Partnerships Act, what is the liability of a general partner for the debts of the partnership?

Accepted Answer

Joint and several liability for all partnership debts and obligations

Answer

Limited to their capital contribution

Answer

No personal liability if they were not involved in the transaction

Answer

Limited liability as determined by the partnership agreement

Question 5

Under the OBCA, what is a 'unanimous shareholder agreement' (USA)?

Accepted Answer

An agreement among all shareholders that restricts or transfers directors' powers to shareholders

Answer

An agreement requiring all shareholders to vote the same way

Answer

An agreement that all shares must be sold at the same price

Answer

An agreement preventing new shareholders from joining

Question 6

In Ontario, what is the doctrine of 'unconscionability' in contract law?

Accepted Answer

A doctrine allowing courts to set aside contracts where there is inequality of bargaining power and exploitation of the weaker party

Answer

A rule that contracts must be read narrowly against the drafter

Answer

A rule requiring good faith in all commercial contracts

Answer

A doctrine about unfair surprise in contract terms