Tài liệu Chapter 7 business law

Business Law Chapter 7 questions 1. False. The person of the age of majority would be bound by the contract, although the youth is not legally bound by the contract, and the court has no cause or reason to enforce the contract. 2. The general principle is that persons under the age of majority, called infants or minors are not bound by their agreements, but the adults with whom they contract are bound. 4. When a minor borrows money to buy necessaries, there is an obligation to repay the debt only if the funds advanced are actually used for necessaries. For this reason, a creditor cannot recover money loaned to a minor to pay for school tuition if it is used instead of gambling 8. An insane or drunk person must establish to escape liability, the person must establish that they could not establish at the nature of the time the act they were committing. To escape liability the person must establish that they were intoxicated or insane and as well that that the other person in the contract was aware of their given state. 9. When entering a contract with the government a businessperson must follow all the according rules to the jurisdiction the contract falls in. A corporation in turn is treated as a person and carries the same obligation a sole individual does. The only occurrence that deems them ineligible for contract is if the contract is not in there legislation which would deem the contract void. To conclude a business person must follow the rules of the legislation they fall in and jurisdiction according to their given region 10. A businessperson must be cautious with a contract when dealing with a foreign government, for example if we were at war with the country the contract would be deemed void. Secondly, like stated in number 9, the businessman must follow into the proper legislation especially when dealing with huger corporations, the contract cannot initiate the potential to break the criminal act. Thirdly, If a contract is negotiated on the terms of defamation it is against a businesspersons rights and would be deemed void. Lastly, contracts that are negotiated by a bet or wager would be deemed void depending in Canada by province to province. 11. A contract that is performed illegally is a contract where it is negotiated put in place and executed with an illegal act taking place in the act. An illegal contract is a contract that cannot be committed and is deemed void because in the initial plans of the contract illegal terms were put in place, therefore deeming it void. 13. The two reasons that can deem a contract illegal are as follows; the sale of a control substance or the commission of violence or antisocial act. 15. 1) Contracts to commit a crime: If a hitman is hired to kill the contract is an illegal contract it’s deemed illegal because the person would be committing a crime. 2)Contracts to commit a tort: If a contract is created to give someone a bad name by defamation it is illegal 3)Contracts involving immoral act: Prostitution is not illegal, although an act around it is if a person tries to purchase a prostitute it is illegal 4)Contracts that obstruct justice; If a contract interferes with an on going criminal case in a judicial way it is illegal 5)Contracts that are bets or wagers: Depending on province to province, now there is a law in the statute to enforce these acts. 17. When determining intention, the courts do not look to the state of mind of the person making the promise. Rather, they look to the reasonable expectations of the promisee. The test is objective. Would a reasonable person have thought that the person making the promise was serious and that the agreement was legally binding? If so, it is not going to help the person making the promise to say, “ I was only kidding.”