Define the Term
A proposal by one party indicating willingness to enter into a contract on specific terms.
What is an offer?
This element refers to the parties' shared desire to be legally bound, distinguishing contracts from social or casual agreements.
What is intention to create legal relations?
Pressure, threats, or coercion that forces someone into signing a contract.
What is duress?
Money awarded by a court to compensate a party for losses caused by a breach of contract.
What are damages?
A store mistakenly advertises laptops for $5. This legal concept means the advertisement is NOT a binding offer the store must honour.
What is an invitation to treat?
Unqualified agreement to the exact terms of an offer, communicated to the offerer.
What is an acceptance?
A contract for an illegal activity, such as smuggling or assault, fails because it lacks this essential element.
What is legality (of purpose)?
A false statement of fact that induces another party to enter into a contract.
What is misrepresentation?
An equitable remedy that cancels the contract entirely and returns both parties to their pre-contract position.
What is rescission?
A 17-year-old signs a 2-year gym contract after being pressured by staff. Under BC's Infants Act, this is the main reason the contract may be unenforceable.
What is lack of capacity? (or: being a minor)
Something of value exchanged between the parties to a contract — money, goods, services, or a promise.
What is consideration?
Type of contract formed when both parties exchange promises — promise for promise.
What is a bilateral contract?
Unfair pressure exerted by a person in a position of trust, authority, or power over another party.
What is undue influence?
A court order requiring a party to actually perform their contractual obligations, often used when goods are unique — like real estate or art.
What is specific performance?
A landlord promises to lower rent for six months. The tenant relies on the promise and budgets accordingly. This doctrine may prevent the landlord from going back on it.
What is promissory estoppel?
The legal ability or competence required to enter into a binding contract.
What is capacity?
Type of contract formed when one party performs a requested act in response to a promise (e.g., a reward offer).
What is a unilateral contract?
The three categories of misrepresentation in Canadian law are innocent, negligent, and this most serious form, which involves a knowingly false statement.
What is fraudulent (misrepresentation)?
These damages aim to put the wronged party in the position they WOULD have been in had the contract been properly performed.
What are expectation damages?
A used-car seller hides a major accident history. The buyer wants to cancel the deal and get their money back. This is the remedy that achieves that outcome.
What is rescission?
A grossly unfair bargain that arises from a significant power imbalance between the parties.
What is unconscionability?
In Canadian contract law, something already done before a promise is made is generally treated as this kind of consideration — and is therefore invalid.
What is past consideration?
This doctrine discharges both parties from a contract when an unforeseen event makes performance impossible or radically different — like a flood cancelling a concert.
What is frustration?
The legal principle requiring a wronged party to take reasonable steps to minimize their own losses after a breach.
What is the duty to mitigate?
Two friends agree at lunch that one will pay $20 to the other if they finish their fries. Even if money changes hands, this is the key missing element that means there's no binding contract.
What is intention to create legal relations?