ACCT 202 Lecture Notes - Lecture 4: Personal Information Protection And Electronic Documents Act, Parol Evidence Rule, Condition Precedent
29 May 2018
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Chapter 10: The Requirements of Form, Writing and Privacy (pg 175-190 PDF:)
Under the law of contract, there are two general classes of contracts:
1. A contract deriving its validity from the form that it takes is referred to as a formal contract
(covenant)
2. the informal or simple contract, which may be implied, oral, or written
A breach of an agreement, then, took on the character of a breach of a promise that, if solemnly made,
was considered to be a breach of faith, and, hence, a religious matter. By the end of the thirteenth
century, covenants in writing (except for debt), if under the seal of the promisor, were enforced by the
kig’s ourt, Modern foral oeat ould e a poer of attore. This is a foral douet
frequently used to empower a person to deal with the land of another.
Power of attorney: A legal document usually signed under seal in which a person appoints another to
act as his or her attorney to carry out the contractual or legal acts specified in the document.
Another formal covenant is a deed of land under the Registry System in a number of provinces in
Eastern Canada. To be valid, the deed must be in writing, and signed, sealed, and delivered in order to
convey the property interest in the land to the grantee
Informal contracts
In this respect, the actions of the parties assumed immense proportions in determining the question of
enforceability. the ceremonial aspects surrounding the agreement were important determinants of
enforceability early cases, the courts would enforce the duties promised by persons in particular trades
or professions if they improperly carried out their duties remedied in part by the application of the
action of deceit (also a tort) This provided a remedy if one party had fully performed, but if the other
refused to do so. If neither party had performed there was still no remedy. Today, the informal or simple
contract does not depend upon a prescribed form for its enforceability.
• THE STATUTE OF FRAUDS: The particular statute that imposed the requirement of writing for
certain informal contract an Act that was passed by the English Parliament and introduced to
Canada as a colony. It was ostensibly designed to prevent perjury and fraud with respect to leases
and agreements concerning land.
• Those provinces that have repealed the Statute of Frauds have incorporated the requirement of
writing into statutes applicable to particular transactions where a written record is considered
necessary: usually land, long-term contracts, and wills.
• the provinces retaining the Statute, contracts that cannot be fully performed within one year also
must be in writing.
The effect of the Statute of Frauds (or any other statutory provision in provinces that have repealed it)
is that none of the following may be brought in a court of law unless they are in writing and signed by
the party to be charged: a contract concerning an interest in land, a promise by an executor or
administrator to settle a claim out of his or her own personal estate, a guarantee agreement, or, in some
provinces, a contract not to be fully performed in a year
• The law does not prohibit or render void these particular agreements if they do not comply with the
statute or equivalent provision — it simply renders them unenforceable by way of the courts.
• The agreement continues to exist and, while rights cannot be exercised to enforce the agreement, it
may be possible to appeal to the courts in the event of breach under certain circumstances.
• Each of the four particular kinds of contracts at the time were agreements that were either
important enough to warrant evidence in writing to clearly establish the intention of the particular
promisors to be bound by the agreement, or the nature of the agreement was such that some
permanent form of evidence of the terms of the agreement would be desirable for further
reference. The application of the statute to each of these contractual relationships produced a
number of responses by the courts to avoid the hardships imposed by the law.
find more resources at oneclass.com
find more resources at oneclass.com
http://www.youtube.com/watch?v=C5azqSAGGiQ and
http://www.youtube.com/watch?v=ZHwuiNcuMDM
Legal agreement/contracts that the statute protects:
1. Contracts by Executors and Administrators
The protection that the statute or equivalent provision provides to the executor or administrator of an
estate from a claim that the executor promised to answer for a debt or default out of his or her own
estate.
An executor or administrator undertakes to collect, care for, and distribute the assets of a deceased
perso, ad essetiall to keep the assets of the deeased’s estate separate fro his or her o
persoal fuds a eeutor ight e tepted to persoall pa outstadig dets of the deeased’s
estate should the state of affairs of the estate render prompt payment inopportune perhaps to get relief
from persistent creditors or to uphold name of deceases but executor are not required to use personal
funds to relieve the debt of estates and if the wish to do so in must be indicated in writing as the statute
requires
2. Assumed Liability: The Guarantee
An agreement whereby a person agrees to answer for the debt, default, or tort of another. Types
include:
a. Guarantee: requires a memorandum to be in writing and bear the signature of the party to be
charged/enforceable, specifically, its A collateral promise (in writing) to answer for the debt of another
(the principal debtor) if the debtor should default in payment. This relationship involves three parties: a
principal debtor, a creditor, and a third party, the guarantor who only pays if/when principal debtor
defaults
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Chapter 10: the requirements of form, writing and privacy (pg 175-190 pdf:) A breach of an agreement, then, took on the character of a breach of a promise that, if solemnly made, was considered to be a breach of faith, and, hence, a religious matter. By the end of the thirteenth century, covenants in writing (except for debt), if under the seal of the promisor, were enforced by the ki(cid:374)g"s (cid:272)ourt, modern for(cid:373)al (cid:862)(cid:272)o(cid:448)e(cid:374)a(cid:374)t(cid:863) (cid:449)ould (cid:271)e a po(cid:449)er of attor(cid:374)e(cid:455). This is a for(cid:373)al do(cid:272)u(cid:373)e(cid:374)t frequently used to empower a person to deal with the land of another. Power of attorney: a legal document usually signed under seal in which a person appoints another to act as his or her attorney to carry out the contractual or legal acts specified in the document. Another formal covenant is a deed of land under the registry system in a number of provinces in.
