LGST 369 Commercial Law revision exam solution guide new update Athabasca University, Exams of Commercial Law

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LGST 369 Commercial Law revision exam solution guide new update Athabasca University

LGST 369 Commercial Law revision exam solution guide new update Athabasca University Tortfeaser - --A person who has committed a tort. allows one to sue the tortfeaser Primary obligations - --Tell people how they ought to act Secondary obligations - --Remedial. they tell people how they must act after a primary obligation has been broken. (Pay money) The structure of tort and contract law is the same true or false - --True. both have primary and secondary obligations The obligation created by tort law is the same as contract law - --true or false,False. tort law has an obligation created by law regardless of whether one knows the law or not contract law has its obligations created by the parties themselves. Because of the obligations created by tort law - --the concept of privity applies, true or false.,False. Privity applies to contract law,and the only parties that can sue a breach are those involved in the initial agreement and obligation. Compensation in contracts looks forward to the possible benefits lost - --true or false,True. torts seek to restore the offended party to a state prior to the transgretion. Torts look backwards

contracts are about securing some future benefit, so a breach may result in compensation that exceeds the initial value of the arrangement. putting the defendent into the position it expected to enjoy. Risk management in torts and contracts is the same - --true or false,False. torts are always, or should always take a person by surprise, in contrast, contracts are voluntary, thererfore should never require more than what the party thinks they can provide, given the situation goes awry. Which two types of torts are considered to be historically part of the courts of equity? - -- Breach of confidence Breach of fiduciary duty (power and property entrusted to someone for the benefit of another, trust and confidence in public affairs) what are the three main types of torts - --1. intentional torts

2. negligence torts
3. strict liability torts (rare, for very dangerous and uninformed acts -tiger attacks! Cowles v Balac) Name three general principles of tort law - --1. liability insurance
4. vicarious liability
5. remedies Liability insurance should include... - --A duty to defend the insurer should pay for all court expenses

Liability insurance creates a tension with the courts by... - --Fullfilling a compensatory function and thus reducing the deterence function of tort law. Vicarious liability serves tort law in these ways while also remaining fair about who whould bear the loss... - --A plaintiff may sue the owner, who has more money and therefore the compensatory function is satisfied. Since there is the risk of financial costs to the employer they are much more likely to hire the best possible people, and is thus a deterent. Business creates new activities carried out by the employee, that the employee would otherwise not do. There fore it is appropriate for the business to bear the responsibility for acts carried out by the employee. Criteria for determining if an employee is a contractor or not - --It is not enough to simply call someone a contractor if I. the employer controls what is done. ii. the worker uses the employer's equipment and premises iii. the worker is paid a regular wage or salary rather than a lump sum at the end of each project iv. the worker is integrated into the employer's business and is not in their own business. Bazley v Curry - --Not-for-profit loses a case in the supreme court and is held vicariously liable for the acts of a pedophole they employed whose job it was to bath children Four general kinds of tort compensations - --1. compensatory damages

2. punitive damages
3. nominal damages
4. injunctions Compensation and remoteness is affeted by two principles: - --1. defendent is only responsible for damages it CAUSED
5. Would a reasonabler person realized that a particular activity might cause the sort of harm suffered by the plaintiff. (Epistomelogical constrainsts) Compensation and mitigation is affected in several ways: - --This falls into the domain of the plaintiff's responsibilities. if the plaintiff is offered some compensation from the defendent, even if it is in the form of very useful advice, and the plaintiff refuses, then this will affect the compensation ammount.
6. the plaintiff is responsible for taking reasonable steps to mitigate loss
7. 'Duty to mitigate' does not mean legal requirement 3.damages are denied only to the extent that the plaintiff failed to mitigate reasonably.
8. if new costs are associated with the mitigation those can be compensated too. Punitive damages according to the supreme court must be acted in a ... - --Harsh, vindictive, reprehensible and malicious manner Nominal damages - --Symbolically recognize that the defendant committed a tort even though the plaintiff did not suffer any loss and unjuntion can prevent the commission or continuation of the tort Injunction - --Is a court order that requires the defendant to do something or refrain from doing something.

Compensatory damages (tort law remedies) - --1. monetarily repair plaintiff's loss

2. not required if loss is too remote
3. not required if plaintiff failed to mitigate loss. Worker's Compensation and no-fault insurance are two kinds of ... - --Alternative compensation schemes Workers compensation is paid by employers to greatly lessen the liability for a - --workplace injury tort Alternative compensation schemes satisfy both: - --1. compensation to injured parties REGARDLESS OF FAULT
4. lower costs, since no-fault investigations are much simpler Contract - --An agreement that creates rights and obligations that can be enforced in law Meeting of the minds - --A shared decision to enter into a legal transaction on a particular basis Exchange of value - --When the parties each give up something Three requirements for a valid contract - --1. intention to create legal relations
5. agreement through a process of offer and acceptance
6. each must enter by giving consideration

Intention to create legal relations - --If a reasonable person would believe that the parties intended to create a legally enforceable agreement Offer - --Is an indication of a willingness to enter into a contract on certain terms Acceptance - --When an offeree agrees to enter into the contract proposed by the offeror Invitation to treat - --An indication of a willingness to receive an offer A statement is not an offer unless - --It is communicated and received as an offer Quantum maruit - --Reasonable value of services An offer may cease to exist in these ways: - --1. revocation

2. lapse of time
3. death or insanity
4. rejection
5. counter offer Revocation - --Withdrawl of an offer by the offeror Firm offer - --A promise to hold an offer open for acceptance for a certain period of time Option - --A contract in which the offeror is paid in exchange for a binding promise to hold an offer open for acceptance for a specific period.

Counter offers can nullify the original offer - --so when the offeree actually wants the goods in question, it is often prefereable to negotiate with this method rather than counter offers proper,Harmless inquiry. I'm just wondering would you take 50K? instead of 100K? rather than: If you sell for 50K you got yourself a deal. Battle of forms - --When each party claims to hae entered into a contract on the basis of its own standard formdocument... business often create complicated contactual forms containing many terms, which it will insist upon using for transations. but sometimes two companies will have different forms and ways of interpreting business (terms) Acceptance at a distance has two general rules - --for contracts formed withnew technologies,1. instantaneous communication is effective when and where ti is received by the offeror.

2. when here is little or no delay between the parties is instantaneous communication. The postal rule only applies to: - --Acceptances. The moment the letter is put in the mail the contract is in effect. this is the only exception to the general rule of when and where accepted by offeree/offeror. Unilateral contract - --When an act is exchanged for a promise Statute - --Enactment made by legislature in a formal document Parliamentary Supremacy - --Parliament is still supreme and can respond to judges and create new laws

Law of Contracts: - --concerned with the creation and enforcement of agreements Law of Property: - --concerned with acquisition and disposition and use of property Public law: - --concerned with governments and the ways in which they deal with their citizens Constitutional law - --: provides the basic rules of our political and legal systems Administrative law: - --concerned with the creation and operation of administrative agencies and tribunals Criminal law: - --deals with offences against the state Division of powers: - --states the areas in which heach level of government can create laws Risidual power : - --gives the fedaral governmnet authority over everything that is n ot specifically mentioned Doctrine of federal paramountcy: - --determines which claw is pre-eminent based on the Constitutions: division of powers Laws : - --rules that can be enforced by courts. case report - --is a published record of judicial decisions in actual cases

Specific performance - --is a court order for someone to do something, injunction - --is a court order requiring someone to refrain from a certain activity Procedural rules - --govern the details of how disputes actually work their way through the legal system. Substantive rules - --describe the behaviours that can give rise to legal action or attempt to regulate processes or behaviours. pursuant - --in accordance with, following, (pursuit) What are the three possible outcomes of successfully argued contractual defects? - --void, voidable, or unenforceable What does it mean to have an unenforceable contract? - --The agreement still exists, but the courts won't compensate either of the parties for failing to live up to the agreement. However, the contract can form the basis for other types of legal action, such as recovery of a deposit paid pursuant to an unenforceable agreement, or compensation for enrichment provided to a party under the terms of the agreement. What does it mean when a contract is Voidable? - --One party to the agreement can opt to avoid their contractual obligations, without fear of legal ramifications. What does it mean when a contract is Void? - --The contract disappears. It is like it never existed, and it cannot form the basis for any further kind of action.