1. The difference between void and voidable contracts does not matter if the goods are still in the possession of the original parties when the contract was set aside.

a. True

b. False

2. M sells goods to a rogue, R. R did not gain the title of the goods. R appears to resell the goods to N, who is the innocent purchaser. N does not gain the title. M may sue and recover the goods from N. This case is a classic example of a voidable contract.

a. True

b. False

3. Sarah, an American citizen, was lawfully admitted to Canada and applied for permanent residence status. While waiting for her status to be granted, she was hired and accepted a position without first obtaining a work permit as required under immigration regulations, though she was unaware of it. As required under the law, the employer remitted to the Canada Revenue Agency (CRA) the employees deducted employment insurance (EI) and Canada Pension Plan (CPP) including the employers share of E.I and CPP every 15^th month following the end of each month. Sarah was laid off. Since she was deducted from E.I., she is eligible to apply for E.I. benefits. Is Sarah eligible for E.I. benefits?

a. True

b. False

4. A non-resident alien has the same right as a citizen in making contracts and in all other matters of private law. In the event of a war, an enemy alien loses all contractual capacity, apart from any special license granted by the Crown. Therefore, all contracts made with an enemy alien are considered detrimental to the public interest and will make the contract void as being against the public interest.

A. True

B. False

5. Does a labor union, association, social club, and religious community acquire a legal entity or legal personality when they form the organization?

a. True

b. False

6. Does an aboriginal people and Indians living in a designated reserve land have the same contractual capacity as those aboriginal people and Indians living outside the reserve area?

a. True

b. False

7. Mr. Clark, who graduated from dentistry and got a license to practice his profession, incorporated a dental business. Since it requires a large sum of money, he applied for a loan at the bank and mortgage their family home as security for the loan. The house is jointly owned by the couple. The husband sent his wife to the bank to sign the mortgage document without explanation or independent legal advice. Does this case is a classic example of duress or undue influence?

A. Undue influence

B. Duress

8. Does an orally valid contract that falls under the Statute of Fraud is enforceable?

a. True

b. False

9. Ruby, who is a real estate agent, orally agrees to buy the house of her friend, Sandra, for $100,000.00 and gave $5,000.00 as a down payment with the balance to be paid in 60 days. Before the 60 days expire, Ruby sees a more suitable property and refuses to pay the balance. Under the Statute of Fraud, Sandra cannot enforce the contract.

a. True

b. False

10. Peter, who is a minor, hires a riding horse and promises to handle the animal with care, as the term of the contract stipulates. In his excitement, Peter injures the horse by riding it too hard. Queen, who is the owner of the horse, sues Peter for the tort of negligence. Does the action of Queen proper?

a. True

b. False

11. The employment contract of Mr. A contained a clause that he would not work in competition with his employer in the city for two years after the termination of his employment. Without a cause, Mr. A was terminated for breach of employment contract. Mr. A recovered the cost of damages for wrongful dismissal and began to work for a competitor company and within the city. His former employer sought an injunction before the court to restrain him from working with competitor firm arguing that the two years period has not lapse.

a. True

b. False

12. James noticed in his bank account a strange huge withdrawal of money of which he is not aware of. He had contacted the bank and was advised to drop by. Upon review of the statement, particularly on the withdrawal, the bank officer found out that it was a cheque encashment, and the signature of the cheque was forged by his wife. Because of love and to avoid prosecution, James assumes full liability and responsibility for all forged cheques, and he signed a letter from the bank. Does the action of James relieve his wifes liability from prosecution? And by signing the letter, does it create a contract between James and the bank? Does this contract valid and enforceable?

a. True

b. False

13. Ms. Jaymie and her sister, Theresa, lived with their 90-years old mother in a farm located outside and far from City of Calgary. They were approached by the real estate agent and offered to purchase the farm with a generous price. The sisters explained to the agent that they did own the property, their mother did. The deal was explained to their mother who nodded her understanding. The sisters told the agent that their mother is too old and feeble to sign her name. However, the sisters assisted her to complete the signature. Weeks later, the sisters refuse to go through the deal, and they claimed that their mother did not have a mental capacity to form a contract and was incapable of understanding of what was going on. In claiming mental incapacity, what might the court will investigate this contract? And Does the contract valid and enforceable?

a. True

b. False

14. Peter, who is a minor, hires a riding horse and promises to handle the animal with care, as the term of the contract stipulates. In his excitement, Peter injures the horse by riding it too hard. Queen, who is the owner of the horse, realizes that if she sues Peter for breach of contract she will fail because the contract is non-necessary.

a. True

b. False