Foundations of Contracts
KNOWLEDGE EXPECTED OF: CFP® Professionals Only
- Define parties to a contract.
- The offer or
- The accept or
- Define elements required for a contract to be valid and enforceable.
- A valid offer
- A valid acceptance
- The intention to create a legal contract
- Mutual consideration
- Capacity to contract
- Explain when a verbal and/or written contract is in place between an offer or and an accept or.
- Explain circumstances that may cause an offer to be terminated.
- Revocation by offer or
- Rejection by the accept or
- Counteroffer by accept or
- Death or incapacitation of offer or or accept or
- Define a minor for the purposes of law.
- Identify the age of majority for the different jurisdictions in Canada.
- Explain circumstances when a contract may be voidable, such as:
- Contracts entered into involving a minor
- Contracts entered into under duress (including economic duress)
- Contracts entered into under undue influence (actual or presumed pressure)
- Contracts entered into containing a misrepresentation
- Explain circumstances when a contract may be void, such as:
- Contract that is contrary to a specific statute (illegal)
- Contract that violates a public policy
- Explain benefits and risks of the approaches to drafting a contract.
- Drafting by a competent legal professional
- Explain how a contract may be terminated.
Glossary of Verbs (mouse over to see definition)
To state exactly the meaning of
To be aware of / to recognize and correctly name / to locate an appropriate resource
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
To note the similarities and differences between two or more things
To determine an approximate value for
To find the value using mathematics
To change from one form or purpose to another
To reach a conclusion or make a judgement through careful study
To give the meaning of / to construe or understand / to translate orally