knowledge topics
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
- Lapse
- 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.
- Self-drafting
- Drafting by a competent legal professional
- Explain how a contract may be terminated.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
-
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
