Canadian Law
Define stare decisis
Judges in common law jurisdiction must follow the decisions of higher courts in the same jurisdiction based on similar facts.
False imprisonment must be physical to be actionable
False - it can be a mental restraint! (E.g., you think you have no other option but to follow the security guard)
Sebastian and Katherine are co-owners and directors of a small tech company, holding equal shares. Over time, Sebastian starts making unilateral decisions without consulting Katherine, despite their equal control. He excludes Katherine from board meetings, refuses to declare dividends, and uses company funds to pay himself a large salary while leaving little for reinvestment or shareholder distributions. What claim can Katherine make against Sebastian?
Katherine can file a claim for an oppression remedy under corporate law, arguing that Sebastian's actions unfairly disregard her rights as a shareholder. This includes requiring Sebastian to buy out her shares at a fair value or appointing an independent auditor to oversee the company’s finances.
When the seller unknowingly makes an erroneous statement regarding the type of processor contained in a computer during negotiations leading to the sale of the computer, what factors affect the contract and remedy available?
Innocent misrepresentation. Remedies: only rescission is available
A creditor with a claim against a sole proprietor would normally have a right against the sole proprietor, limited only to his contribution to the business (T/F).
False. Sole proprietor has unlimited liability, and any claim against him would extend to his personal assets
Which principle allows statutes to override common law?
Parliamentary Supremacy
What is the main difference between assault and battery?
Assault is non-physical, whereas battery is physical
On June 1, Naomi sent Ryan a letter offering to sell her watch for $50. On June 3, she sent another letter that supposedly revoked her offer. On June 5, Ryan received Naomi’s offer and immediately put an acceptance letter into a mailbox. On June 7, Ryan received Naomi’s revocation letter. On June 9, Naomi received Ryan’s acceptance letter. Assuming the postal rule applies, do Naomi and Ryan have a contract?
There is a contract, since acceptance is communicated when mailed, and revocation is only effective when received.
Tips: it is best that you draw a timeline for this type of question
Rhys offers to sell a piece of artwork to Arveen for $5,000. Arveen responds by saying she'll buy it for $4,000. Rhys denies the $4,000 offer, but Arveen wanted the art piece so much that she later accepted the original offer 30 minutes later. At this time, Rhys has already sold the piece to another buyer. Rhys sued Rhys for breached of contract because Arveen believes they had a contract. Is she correct?
Arveen’s response is a counteroffer, which terminates the original offer made by Rhys
The corporation, having the same capacity as a natural person, may buy and sell, make contracts, own land, is obligated to pay tax under municipal, provincial and federal schemes, and may otherwise acquire all the rights and obligations of a natural person (T/F).
True
What do sections 91 and 92 of the Constitution Act (1867) do?
Divides the powers between federal and provincial governments
What are the defences to defamation? There are five
(1) Truth
(2) Fair Comment
(3) Qualified Privilege
(4) Absolute Privilege
(5) Responsible Communication
Maks owns a successful construction company called Sutherland Ltd. He agrees to renovate Ava’s kitchen for $20,000. However, Ava informed Maks the day before the renovation date that she no longer wanted to renovate and would not pay for the project. Maks had purchased all materials in preparation for the project. Instead of seeking other renovation projects or returning materials he purchased specifically for Ava’s kitchen, Maks decided to store the materials and did no work for several weeks. He then sues Ava for the full $20,000, claiming his losses include the cost of the unused materials and lost income. Can he succeed?
This is the case of anticipatory breach. Maks can claim for restitution; however, his compensation might be reduced since he has a legal duty to mitigate, which he did not fulfill.
Rade recently migrated to BC to study at the business school. He got a job at a restaurant in Vancouver downtown to finance for the expensive tuition. The restaurant’s manager agreed to hire Rade for $10 per hour, knowing that Rade does not know the legal minimum wage requirement in BC of $16.75. Rade is happy to accept the offer as he would be able to support his life here in Vancouver. Is the contract valid?
No. While there is consensus, consideration, capacity, and intention, there is an issue of legality. The legal minimum wage is $16.75, and paying below this goes against the Employment Standards Act of BC.
Shareholders, directors, and officers owe a fiduciary duty to the corporation (T/F)
False. Only directors and officers
Michael is sued in the BC Supreme Court for causing damage to a road and the facts of the case are very similar to one that the Alberta Court of Appeal just passed judgment on. Michael hired you as his lawyer. You cited the Alberta Court’s decision to support the case. Must the judge in the BC Supreme Court follow the decision from the Alberta Court of Appeal?
No. The stare decisis principle outlines three important criteria: (1) judgment from a higher court, (2) cases of similar facts, and (3) in the same jurisdiction. In Michael’s case, criteria (1) and (2) are met, while (3) is not. Therefore, the stare decisis principle is not applicable in this case – not binding. In other words, judges in the BC Supreme Court must not follow decisions from the Alberta Court of Appeal. However, they can follow the lines of reasoning only if they find the decision persuasive and appropriate.
Bernardo is an experienced soccer player. He is representing SFU for a much-anticipated seasonal match against UCLA. Eighty-five minutes into the game, no team has scored, but Bernardo has one trick up his sleeves. He shows the Americans what “real football" means with his sly tricks. This move helps Bernardo secure the championship for the SFU team. However, while performing the move, he pushes Ryan - a UCLA player, onto the ground. As the crowd cheers for Bernardo, Ryan feels hurt and defeated. He then sues Bernardo for battery. Discuss the likely outcome
Bernardo has a defense of consent in the lawsuit against him. In particular, Bernardo can argue that even though the consent has not been explicitly communicated, it is indeed implied due to the nature of the sports game.
Nick sold a rare painting that he believed to be a replica for only $500 to Sophie. He listed it for sale, describing it as a "replica painting." Sophie, an art enthusiast, purchased the painting for the stated price. However, she had the painting appraised and discovered that the painting was an original artwork by a renowned artist, Jordan, worth $50,000. Can Sophie keep this painting as finders keepers?
This is the case of mutual mistake that destroyed the original intention of both parties. The contract is void for lack of consensus, and courts may rescind the contract, returning the painting to Nick and refunding Sophie her $500.
Gagandeep is a legally blind teacher who teaches piano to kids at Delta Secondary School. She relies on her trusted acquaintance, Elijah, to help her with a bank document. Gagandeep gives Elijah a limited power of attorney to manage her bank account for a specific transaction while she is out of the country. Unable to reach the document herself, Gagandeep relied on Elijah's explanation and signed it. Later it is discovered that the document was not a limited power of attorney but a general power of attorney, granting Elijah full control over all of Gagandeep's finances and property. Elijah obtained a car loan using Gagandeep’s account, which he later defaulted. The bank sued Gagandeep for breach of contract. What defense can she use?
Gagandeep can use non est factum defense because the document signed was fundamentally different from what she believed it to be. She thought it granted limited powers but it actually granted general powers. In addition, Gagandeep was not negligent because she took reasonable precautions by asking Elijah to explain the document. She could not verify its contents herself due to her visual impairment.
If the corporation is unable to finance its debts and goes bankrupt, creditors and lenders can come after the shareholders for payments (T/F)
False. Only the corporation is responsible for the debt as a legal person
The Charter of Rights and Freedom governs the relationship between individuals
False, the Charter applies only to government, including laws made by all levels of government and agents acting on behalf of the government.
Indraj has a swimming pool in the backyard of her mansion, which lies next to the rose garden. The pool is enclosed on all sides by a line of evergreen trees. The only entrance to the pool is a wooden saloon gate that she occasionally locks. Before Christmas, Indraj decided to remodel her backyard, which requires complete drainage of the pool. This time, she accidentally left the gate closed but unlocked. Kabir, a full-time gardener for the estate, was pruning the evergreen trees when he accidentally slipped off the ladder, falling into the empty pool and breaking his leg. Is Indraj liable for Kabir's injuries?
Yes, Kabir has a contractual agreement with Indraj to provide a service; therefore, Kabir has consent from Indraj to be on the property. Indraj, as an occupier of the estate, owes a duty to take reasonable care to a person who enters the premises and will be reasonably safe to use the premises, pursuant to s. 3(1) of the Occupier Liability Act.
Domenic is looking to purchase a used car. The salesperson, Aleks, assures him that the vehicle has never been in an accident, confidently stating, “This car is in excellent condition and has no history of accidents.” Based on Aleks' statement, Domenic purchases the car. A few weeks later, Domenic discovers through a mechanic’s inspection that the car had previously been in a major accident, and the frame was poorly repaired, making it unsafe to drive. Aleks, as it turns out, had not checked the car’s history report but relied on the previous owner's verbal claims. What can Domenic claim and his possible remedy?
Aleks had negligently misrepresented Domenic. Aleks breached his duty of care as a professional salesman, which induced Domenic into a contract. Domenic is entitled to damages or rescission.
After returning from studying abroad, Mike rents a small storefront for his Italian restaurant. His lease is set to renew in one month, and he has invested heavily in renovations to the space. Seeing how successful Mike's business is, the landlord - Ria, tells Mike that she will only renew the lease if he agrees to double the rent, even though the market rate for similar properties has not changed. Under tremendous pressure and facing the threat of losing business, Mike agrees to the higher rent. What is your legal advice to Mike in this situation?
Mike can seek to rescind the rent increase by claiming he was under economic duress when signing the contract.
A partnership can be created by the conduct of the parties (T/F)
True. A partnership is defined as two or more people carrying on business with a view to profits. It doesn't need an agreement and can be implied by conduct.