NCA Canadian Common Law Foundations

Question 1

In Canadian contract law, which element must be present to distinguish a binding contract from a mere gift promise?

Accepted Answer

Consideration

Answer

Written form

Answer

Notarization

Answer

Registration

Question 2

Under Canadian common law, the parol evidence rule provides that:

Accepted Answer

Extrinsic evidence cannot be admitted to add to, vary, or contradict a fully integrated written contract

Answer

Oral agreements can never be enforced

Answer

All contracts must be reduced to writing to be valid

Answer

Oral modifications of written contracts are automatically void

Question 3

The doctrine of promissory estoppel in Canadian common law operates as:

Accepted Answer

A shield preventing a party from going back on a clear and unequivocal promise where the other party has relied on it to their detriment

Answer

A cause of action allowing a party to sue on a gratuitous promise

Answer

A rule requiring promissory notes to be in writing

Answer

An equitable remedy that converts a promise into a binding contract

Question 4

A contract is formed between a seller and a buyer. The buyer claims the seller made a misrepresentation inducing the contract. For rescission, which elements must the buyer establish?

Accepted Answer

A false statement of fact, made to the buyer, that induced the buyer to enter the contract

Answer

That the seller knew the statement was false and intended to deceive

Answer

That the buyer suffered a financial loss exceeding $10,000

Answer

That the statement was made in writing

Question 5

In Canada, which statute in most common law provinces codifies the law relating to the sale of goods and implies terms such as fitness for purpose and merchantable quality?

Accepted Answer

The Sale of Goods Act

Answer

The Consumer Protection Act

Answer

The Business Corporations Act

Answer

The Occupiers' Liability Act

Question 6

Under Canadian contract law, the test for remoteness of damages in breach of contract cases derives from which English case adopted across Canadian common law provinces?

Accepted Answer

Hadley v. Baxendale (1854)

Answer

Donoghue v. Stevenson [1932]

Answer

Carlill v. Carbolic Smoke Ball Co. [1893]

Answer

Pinnel's Case (1602)