Business Law – Practice Exam – Canadian

In a contract what element is the promise in exchange for performance by the other party?

The consideration must be for legal activities in order for the contract to be valid.

When you put in your agreement for services the disclosure that you will not complete the work if you do not receive payment, what part of the contract is that?

What are the reasons a party might not meet the competency and capacity requirements? (Select all that apply.)

Acceptance can be verbal or written.

What type of agreement is most easily enforceable?

What are the owner’s liabilities in a sole proprietorship? (Select all that apply.)

What are the advantages to being a sole proprietorship? (Select all that apply.)

LLCs are NOT a legal form of a business structure when starting a business in Canada.

Federally incorporated and Provincially incorporated entities are the only types of entities you may select when setting up a corporation in Canada.