Filters
Question type
Study Flashcards

When a tenant fails to pay rent on a leased commercial property, the common law right of distress is available to the landlord.

Correct Answer

verifed

verified

They couldn't remember exactly how it happened, but the Mauri's ended up a three-computer family with the consequent mess of books and papers in three different rooms. Mr. Mauri hired a general contractor, Mr. Wip, to build a "computer room." Wip had several qualified workers but still sub-contracted with an electrician and a carpenter. The work went well. Mauri held back 10%, but paid out 90% in good faith. That is, when he paid, there were no complaints or liens filed. It turned out, however, that before anyone had completed his work-and no one expected payment until the job was finished-Wip disappeared with the money. On these facts, which of the following is true?


A) The subcontractors, but not the workers, are entitled to place a lien on Mauri's property.
B) If the electrician fails to file his lien on time, he can file it late if he uses the right form.
C) If the carpenter properly files a lien in the appropriate office, he can be assured that he will recover the entire amount owed.
D) If all those entitled to file a lien do file and prove in court the amounts owed, Mauri is responsible for the sum total of those claims.
E) The workers and subcontractors have an action against Wip for breach of contract.

Correct Answer

verifed

verified

Joe bought a car from Harry's Fine Car Lot and owed him $5000 on the deal, which he was paying back at $500 a month under a Security Agreement. Harry assigned that Security Agreement to Ace Finance Company, and they served notice on Joe that he was to make his payments in future to them. Joe knew, however, that his deal was with Harry, and he ignored the notification and continued to make the payments to Harry. What danger does he face in these circumstances?

Correct Answer

verifed

verified

Harry's Fine Car Lot had the right to as...

View Answer

What is the result of a settlement that takes place within a year of bankruptcy?

Correct Answer

verifed

verified

The debtor usually retains possession of the goods used to secure a debt while the creditor has the right to seize them for default.

Correct Answer

verifed

verified

Which of the following statements regarding the securing of debt is true?


A) The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation.
B) To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal.
C) In every province, there is now a requirement that a guarantor appear before a notary public.
D) Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor.
E) As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.

Correct Answer

verifed

verified

In a creditor/debtor transaction, explain the purpose of security and how that purpose can be realized.

Correct Answer

verifed

verified

This requires that students understand a...

View Answer

What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?

Correct Answer

verifed

verified

The transa...

View Answer

Explain the purpose of the Personal Property Security Act.

Correct Answer

verifed

verified

Its purpose is to bring all of...

View Answer

A guarantee must be supported by consideration, just like any other contractual obligation. Explain what consideration is present when one person guarantees the debt of another.

Correct Answer

verifed

verified

If a creditor would not have advanced th...

View Answer

Settlements involve the transfer of assets for nominal or no consideration.

Correct Answer

verifed

verified

Because of the special nature of a guarantee, there is no requirement for consideration.

Correct Answer

verifed

verified

Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.

Correct Answer

verifed

verified

Where a debtor has defaulted and the creditor, under the Personal Property Security Act, repossesses and resells the goods, what is his obligation with respect to overages or underages?

Correct Answer

verifed

verified

Any surplus must be returned t...

View Answer

"Bankruptcy is a convenient way to avoid paying your debts." Discuss the accuracy of this statement.

Correct Answer

verifed

verified

Students should note that this attitude ...

View Answer

With regard to guarantees, which of the following is False?


A) A guarantor can use any defence against the creditor that the debtor could use.
B) A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.
C) A verbal guarantee is as enforceable as a written one.
D) Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed.
E) A legally enforceable guarantee must satisfy all the elements required to create a binding contract.

Correct Answer

verifed

verified

Real and personal property can be used to secure a loan.

Correct Answer

verifed

verified

Explain how the rights of the creditors are protected under bankruptcy legislation.

Correct Answer

verifed

verified

A trustee in bankruptcy is appointed and...

View Answer

Identify which of the following statements best describes the legal position of a conditional seller.


A) The conditional seller must comply with the provisions of the Personal Property Security Act to protect his interest.
B) He is given first priority over all of the other creditors with respect to all of the conditional buyer's assets.
C) The conditional seller is in a better legal position than if instead he had been the chattel mortgagee of the same assets.
D) The conditional seller loses all legal rights against the conditional buyer if he fails to register.
E) The conditional seller has no legal rights because such contracts are void.

Correct Answer

verifed

verified

Any substantial change in the nature of the contract between the creditor and the debtor without the guarantor's consent will relieve the guarantor of any obligation.

Correct Answer

verifed

verified

Showing 41 - 60 of 115

Related Exams

Exam 1

Managing Your Legal Affairs

127 Questions

Exam 2

Introduction to the Legal System

159 Questions

Exam 3

The Resolution of Disputes: the Courts and Alternatives to Litigation

221 Questions

Exam 4

Intentional Torts and Torts Impacting Business

149 Questions

Exam 5

Negligence, Professional Liability, and Insurance

155 Questions

Exam 6

The Elements of a Contract: Consensus and Consideration

184 Questions

Exam 7

The Elements of a Contract: Capacity, Legality, and Intention

157 Questions

Exam 8

Factors Affecting the Contractual Relationship

182 Questions

Exam 9

The End of the Contractual Relationship

171 Questions

Exam 10

Agency and Partnership

211 Questions

Exam 11

Corporations

149 Questions

Exam 12

Employment

161 Questions

Exam 13

Intellectual Property

115 Questions

Exam 14

Real and Personal Property and Protection of the Environment

130 Questions

Exam 16

Sales and Consumer Protection

149 Questions

Show Answer