The law of contract has developed as a result of increased complexity of commercial transactions. Until the 17th century, dispute between parties in the exchange of goods or services could be addressed only under tort law. However, as commerce increased and the range of products and services expanded, the need for specific law dealing with contracts became apparent, and the case law of contracts began to develop. The law of contract can be viewed as harsh and individualistic; however, not always addressing those issues seen as significant to the public good. As a result, governments have developed statute law to address matters such as consumer purchases, residential rental agreements, and ownership of copyright, patents, or trademarks. The statute law has been developed in the public interest, in order to afford protection for individuals against potentially more powerful business interests. The advent of the digital era poses new challenges and new circumstances against which the common law of contract and the statute law protecting consumers must be applied, practiced, refined and evaluated. Students will examine the nature, origins and sources of contract law, and assess current statute law in terms of its effectiveness.
Resource-based learning is an integral part of all units. The bibliography developed to support this curriculum will assist you in incorporating a variety of resources from different media into each unit. This annotated bibliography should be available from your teacher-librarian or the Learning Resource Distribution Centre. The bibliography contains annotations of current, useful resources including print, video, Internet sites, and other media selections. Teachers are encouraged to assess their current resource collection, identifying those that continue to be useful, and to acquire small quantities of each new title, rather than class sets, in order to provide students with a broad range of perspectives and information.
The following list of evaluated resource titles provides a starting point for developing a resource collection that is current and relevant, and that addresses students' various learning styles and abilities. Please refer to Law 30 The Law and You: A Bibliography, for a complete list of resources giving the full citation, annotation, and ordering information. Please note that many of these resources can be ordered through the Curriculum Distribution Service. Videos may be available from Media Group. At the time of publication all of the resources listed below and in the bibliography were in print and available.
Print Resources
Canadian Legal Guide for Small Business
Critical Concepts of Canadian Business Law
Cyberlaw Canada
Fundamentals of Contract Law
Make It Legal: What Every Canadian Entrepreneur Needs to Know about the Law
Non-Print Resources
Understanding the Law: The Coat
Understanding the Law: The Worm
Internet Sites
The following links provide access to evaluated and recommended websites that support Unit Six of Law 30.
Incorporating current events enhances students' understanding of the concepts under study and extends their learning experiences by relating the events to real life and making them more relevant. Sources for current event stories include newspapers, newsmagazines, daily and weekly television and radio newscasts, documentaries, and the Internet. Many Canadian daily newspapers are available online and are a useful source of current events. Select articles and news items to support the objectives and concepts as often as possible, and encourage students to contribute also.
Learning objectives of two types are identified for Law 30, including Foundational Objectives and Specific Learning Objectives. Foundational Objectives are designed to guide instruction and student learning throughout each unit of study, and indicate the broad learning outcomes in terms of content, skills and abilities, and values. Specific Learning Objectives identified in each lesson of the unit are designed to help students achieve the Foundational Objectives. The core Specific Learning Objectives are identified in bold font. This makes timelines for each lesson and unit flexible. Teachers can choose to focus on the core Specific Learning Objectives only, or to have students strive to achieve all of the stated Learning Objectives.
Objectives to achieve the Common Essential Learnings (C.E.L.s) are identified using the following abbreviations:
| Communication | |
| Numeracy | |
| Critical and Creative Thinking | |
| Technological Literacy | |
| Personal and Social Values and Skills | |
| Independent Learning |
| Knowledge/Content |
Skills |
Values |
| · Know the elements of a valid contract. (COM) · Know the position of minors in contract law. (CCT, COM) · Know that consumer protection exists as statute law.
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· Apply criteria for valid contract to common consumer transactions. (CCT, COM) · Differentiate between statutory warranties and express warranties. (COM, CCT) · Demonstrate application of the consumer complaint process in the retail industry. (PSVS, CCT, COM) |
· Appreciate the necessity of contracts. (CCT, PSVS) · Appreciate the value of consumer protection statutes. (CCT, COM, PSVS) · Assess the effectiveness of statute law in providing protection to consumers. (CCT, PSVS) |
| Content (Teacher Information) |
Concepts and Knowledge Objectives |
| The Nature of Contract Law When parties intend to enter legal agreements, and meet certain criteria in the process of defining the nature of such agreements, contracts are formed. A contract is a process of negotiation of private rights and obligations between parties to a contract. These agreements may be written or verbal, or may be completed through actions of the parties involved. Individuals form contracts when they undertake common consumer transactions, whether as buyers or sellers, lessors or renters. The purpose of the law of contracts is to protect the reasonable expectations of the parties involved in an agreement, through application of contract law, and to provide an avenue for dispute settlement according to the rule of law. Under common law, only parties to a contract are entitled to contractual rights. Origins of Contract Law Contract law developed to fulfill the need to resolve disputes in business transactions. Until the 17th century, the only legal remedy for individual commercial disputes was through the law of torts, whereby an individual could undertake tort action for harm caused by failure to repay debt. As commercial transactions increased in volume and complexity, the need to recognize a legal relationship in the exchange of goods and services became more apparent. In the latter 17th century, judges began to hear increasing numbers of cases regarding commercial transactions, resulting in the genesis of contract law. Sources of Contract Law In all Canadian provinces and territories other than Quebec, contract law is based on English common law. In Quebec, the Civil Code governs contract law, with its main elements derived from common law. Very little contract law originates from legislated statutes, with statutes developed only in response to perceived shortcomings with existing case law. In Saskatchewan, as in many other jurisdictions in Canada, statute law has evolved particularly in relation to consumer protection matters. Elements of a Contract A contract is an intention to create legal relations between parties, and must include certain elements in order to meet the criteria of a contract. Along with the intention of parties to create a legal relationship, a contract must include: · offer · acceptance · consideration. |
Contract Know that a contract is a voluntary agreement between two or more parties, that creates a legal relationship and creates legally enforceable obligations upon the parties to a contract. Common Law Know that as individual cases were recorded over time, the common decisions of the courts came to constitute that body of law known as the common law of contract. Privity Know that under common law doctrine of privity, only parties to a contract can enforce a term or condition of a contract. Statute of Frauds Know that an early example of statutory contract law was the Statute of Frauds, enacted in England in 1677. Know that some principles of the Statue of Frauds remain within contract law in Canada, including stipulation that the following types of contracts must be in written format: · contracts for sale of land · contracts with obligation beyond one year · contracts whereby one promises to pay the debt of another · promise of an executor to pay the debts of a deceased · contracts for gifts in consideration of marriage. Offer Know that an offer is a specific serious proposal, that, if accepted, leads to a contract. Acceptance Know that acceptance of an offer must include three aspects: · it must be communicated clearly or indicated by action · it must occur in a fashion specified in the offer · it must be unconditional, without changes. Consideration Know that consideration must include something of value given and received by each party. |
| Skills/Abilities Objectives |
Values Objectives |
| Create a hypothetical contract, including elements of offer, acceptance and consideration. Assess common consumer contracts to identify the elements of a contract. Distinguish the differences between written, verbal and implied contracts. Differentiate between a contract and a social invitation. Identify the kinds of contracts that must be in writing. |
Appreciate the private nature of contract law. Appreciate that the Statute of Frauds ensures the formality of certain types of contract. Appreciate the private nature of contrast law. |
Instructional Notes
1.Have students list all of the contracts they have entered into in the previous week. Have them examine each to illustrate presence or absence of validity of the contracts.
2.Examine common consumer contracts, such as the type used by a video rental outlet, a record club, movie theatre, credit card promotion, or other contract. Have students identify each of the elements of the contracts, and any additional conditions included in the contract.
3.Teachers may choose to engage students in a performance contract as a means of illustrating and applying the elements of a valid contract.
4.Assess common consumer contracts to determine whose interests are being protected in the contract, the consumer or the retailer.
5.Examine why the Statute of Frauds has developed as an element of contract law.
Issues in the Law
1.How might the law of contract be affected by changes in technology?
2.Why are contracts needed in society?
| Content (Teacher Information) |
Concepts and Knowledge Objectives |
| Capacity to Contract According to common law, not all individuals are legally entitled to enter into contractual agreements. A diminished capacity to contract is applied to minors (those below statutory age of majority, which in Saskatchewan is 18 years of age), persons with mental disability and intoxicated persons. The intent is to protect individuals who may not have the ability to make decisions in their own best interest. Genuine Consent According to the common law, consent to a contract must be genuine. The common law calls this consensus ad diem, or a meeting of the minds. The contract must not occur under any of the following circumstances: · misrepresentation · mistake · duress · undue influence. When genuine consent is proven to be absent from a contract, the court may rescind the contract.
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Capacity Know that capacity to contract requires understanding of the nature and effect of actions, as well as the legal ability to form a contract on one’s own behalf.
Genuine Consent Know that under the common law concept of consensus ad diem, there must be a meeting of the minds whereby parties to a contract have a mutual understanding of the terms of a contract, and intend to be bound by the terms. Misrepresentation Know that when a statement about a material fact, or key piece of information relating to a contract, is communicated creating a false impression, misrepresentation has occurred and genuine consent has not occurred. Know that misrepresentation may be innocent and unintended, or may be fraudulent and intentional. Mistake Know that a contract may be considered invalid in the event that any of three types of mistake occur: · common mistake, whereby both parties to a contract are in error about the same key fact relating to the contract · mutual mistake, whereby both parties to a contract have different understanding of the material subject of the contract · unilateral mistake, whereby one party to a contract makes a mistake which will unfairly advantage the other party to a contract. Duress or Undue Influence Know that a contract may be deemed lacking genuine consent, and be void, if threats or violence has influenced a party to the contract, or if a party to the contract has been in any other way improperly pressured into the terms of a contract. |
| Skills/Abilities Objectives |
Values Objectives |
| Define and provide examples of necessities as they apply to minors entering contracts. Identify the elements necessary to illustrate genuine consent. |
Examine why the concept of genuine consent is an essential element of a contract. Appreciate that common law governing capacity to contract provides protection to individuals who may not have the capacity to make decisions in their own best interests. |
Instructional Notes
1.See Teacher Information Sheet 6.1 - Minors and Contract Law for detailed information about the capacity of minors to contract.
2.Invite a lawyer to speak to students regarding minors and contract law.
3.Have students hypothesize and create scenarios reflecting contracts that may be set aside by the court because of misrepresentation, mistake, duress or undue influence.
Issues in the Law
1.Should the law of contract be modified in terms of age of consent for entering a contract? Why is the current provision in place regarding minors and contracts?
2.What is the legal position of the parties to a contract in the event that a minor (who is party to the contract) misrepresents his or her age?
Teacher Information Sheet 6.1 - Minors and Contract Law
| Content (Teacher Information) |
Concepts and Knowledge Objectives |
| Illegal Contracts In order to be a legally enforceable contract, the requirements of an offer, acceptance, consideration and genuine consent must be present, along with the intention to create an agreement that is legally binding. However, there are certain types of contracts that are void and unenforceable even when these criteria have been satisfied. Such contracts are considered illegal contracts, and include: · contracts violating statute law · contracts against public policy. Ending a Contract In most cases, a contract is completed, or discharged, when both parties have completed their obligations under the terms of the contract. This is known as discharge by performance. However, contracts may also end in other manners, including by: · agreement, whereby parties to a contract agree to release each other from contractual obligations · impossibility of performance, whereby conditions change to the extent that contractual fulfillment cannot result in the original intentions of the parties to a contract · breach of contract, whereby one party fails to fulfill obligations agreed upon in the contract. Legal Remedies When a situation arises such that one party breaches a contract, the other party to the contract may apply to the court for a remedy. The courts may choose to: · award damages to the injured party, although it is the obligation of the injured party to attempt to lessen or mitigate any damages where possible (the most common result) · order specific performance, whereby the court may order completion of an original contract · order an injunction, compelling a party to do, or not to do, some particular action associated with the contract. In Canada, the law of contract focuses primarily upon private ordering between parties. The practice of the court is to stay out of private business dealings, to be involved only when necessary to provide interpretations and remedies according to the rule of law. |
Violation of Statute Law Know that a contract that violates the statute law is considered illegal and void. Examples of such contracts may include any contract requiring a party to breach the Criminal Code or Competition Act, or any other statute. Violation of Public Policy Know that a contract that is against public policy is one that is contrary to the interests of the general public, and is considered void. Examples of such contracts are rare, but include those that promote unnecessary litigation (in order to generate publicity), or are illegal. Discharge Know that the completion of a contract is called discharge. Discharge by Performance Know that completion of all obligations by parties to a contract results in discharge by performance, ending the contract. Mutual Agreement Know that when parties to a contract mutually agree not to complete a contract, the result is discharge by mutual agreement. Frustration Know that in the event of circumstances making completion of contractual obligations impossible, a contract is discharged by frustration. Breach of Contract Know that when one party fails, without legal cause, to complete obligations under a contract, the contract is discharged by breach of contract. Know that a party to a breach of contract may seek a remedy from the courts.
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| Skills/Abilities Objectives |
Values Objectives |
| Identify remedies available in situations where a contract has been breached. Apply criteria of valid contracts to determine legality of a contract. |
Appreciate that the court will not validate any illegal contract. Appreciate the nature of contract law as private law, representing the interests of the parties to a contract. |
Instructional Notes
1.Have students identify examples of illegal contracts. Begin by reviewing elements of a contract, and speculate on the consequences of an illegal contract.
2.Have students create and present scenarios of contracts ending in frustration.
3.Engage students in a contract they construct regarding some aspect of their Law 30 class. Conduct a mock trial in the event of a breach of a contract.
Issues in the Law
1.Is the cost of litigation a barrier to individual access to justice in contract law? Explain and/or give examples.
| Content (Teacher Information) |
Concepts and Knowledge Objectives |
| Consumer Contracts While the law of contract is founded within the common law, statute law has been developed in order to clarify and to protect the interests of consumers against potentially more powerful commercial interests. Statutes associated with consumer protection are designed to provide a remedy to the consumer, that is not provided via the common law. One feature of statute law in consumer protection legislation is the absence of privity, allowing a consumer to hold a retailer accountable for a product, even if a third party supplier manufactured the product. At the provincial level, consumer protection legislation addresses issues related to the actual goods exchanged, while federal legislation addresses issues of pricing and advertising of goods and services. Consumer Protection In Saskatchewan, consumer protection is legislated under The Consumer Protection Act, while several other statutes impact upon the transactions between buyers and sellers, depending upon the specific nature of the transaction. Statutes such as The Direct Sellers Act, The Collection Agents Act, The Agricultural Implements Act and The Motor Dealers Act also affect the buying and selling of consumer products, although each is very specific in scope according to the specialized nature of a transaction. Application of The Consumer Protection Act is limited totransactions between consumers and those normally in the business of selling consumer goods and services. Provisions offered under The Consumer Protection Act address: · protection from unfair marketplace practices · consumer product warranties · unsolicited goods and credit cards. Remedies available to the consumer are detailed within the statute, but are predicated upon one distinct feature, the consumer must attempt to personally resolve a matter prior to addressing the matter in court. In cases where there is no satisfactory resolution reached between the parties, a consumer may then seek relief, usually through Small Claims Court, asking the court to enforce a judgement under The Consumer Protection Act. Warranties When consumer purchase of a product occurs, the product automatically has a statutory warranty attached to it under Saskatchewan’s Consumer Protection Act. While many consumer products may also have a written warranty from a manufacturer, the statutory warranty remains in effect by law. This statutory warranty is not optional, and applies to all consumer products sold in Saskatchewan by those individuals whose ordinary business it is to sell consumer products. |
Caveat Emptor Know that under common law principles, the rule of law is caveat emptor, meaning let the buyer beware and that consumer protection legislation has been enacted in Saskatchewan, and elsewhere in Canada, to mitigate the harshness of caveat emptor. Absence of Privity Know that under consumer protection legislation, the doctrine of privity is set aside, allowing a consumer to seek redress from a retailer even if products are unsatisfactory due to a manufacturer’s fault. Consumer Protection Act Know that public interest has lead to statutes intended to mitigate the harshness of caveat emptor, in the form of consumer protection legislation. Know that in Saskatchewan, The Consumer Protection Act (1996) provides statute law that will be enforced by the court. Right of First Remedy Know that under Saskatchewan law, a supplier of a good or service must be afforded the first right to remedy the consumer complaint, prior to any court-imposed remedy being provided. Unfair Practices Know that under The Consumer Protection Act (1996), Part II, it is unlawful for a supplier of goods or services to deceive, mislead, make a false claim or to take advantage of a consumer who is not in the position to protect his or her own interest. Statutory Warranty Know that in Saskatchewan, statutory warranty under Part III of The Consumer Protection Act (1996) provides that: · ownership is assured without undisclosed liens or other claims · the goods must be of acceptable quality · the goods must be reasonably durable and fit the specific purpose stated, as well as their usual purpose · the product must match its description and the quality of any sample shown · spare parts and repair facilities must be available for a reasonable period of time, although not necessarily within Saskatchewan. |
| Skills/Abilities Objectives |
Values Objectives |
| Select and apply criteria in making judgements. Compare and contrast statutory and manufacturers’ warranties. |
Contemplate the adequacy of Saskatchewan’s consumer protection legislation. |
Instructional Notes
1.See Student Handout 6.1 - Consumer Rights and Responsibilities for an overview of the philosophy of Saskatchewan’s consumer protection legislation. Examine the statement of rights and responsibilities and assess them. Is the list adequate? Whose interests are being served with this approach? Have students provide evidence from the list to support the position taken.
2.See Student Handout 6.2 - A Summary of The Consumer Protection Act for detailed information regarding the consumer protection statutes in Saskatchewan. Have students identify examples of situations relating to the provisions of the Act.
3.See Teacher Information Sheet 6.2 - The Consumer Protection Act, for detailed background information regarding specific aspects of the consumer protection statutes and warranties. Use the data to engage students in a discussion of what constitutes fair practices in the marketplace. See also Student Handout 6.3 - Sellers’ Responsibilities, for data.
4.Engage students in discussion regarding the purchase of a used automobile. Brainstorm factors that should be considered when entering the used car market. See Student Handout 6.4 - Buying a Used Car for details regarding the legal aspects of used-car purchases. Please note that Life Transitions curricula addresses the financial and personal planning aspects of purchasing an automobile, and this suggestion is meant to serve as a compliment for students who may be enrolled in both courses.
5.Engage students in discussion to draw out their perceptions about the law as it applies to retail purchases. Present the Student Handout 6.5 - Buying from a Retailer and Student Handout 6.6 - Returning Stuff. Compare the student perceptions to the reality of the law in Saskatchewan.
6.Ask students if they have ever made mail order purchases. Have them share experiences of both the positive and unsatisfactory nature. Check student perceptions regarding their views of the law in such matters. Provide Student Handout 6.7 - Buying Through the Mail as a means of assessing the reality against the perception.
7.Have students investigate the legal issues associate with Internet purchases.
8.Have students examine a number of different product warranties provided by manufacturers. Have students compare the product warranties to the statutory warranty provided in Saskatchewan law.
9.Engage students in a discussion of rental accommodation to illustrate their perceptions of rights and responsibilities of landlords and tenants. Next, provide Student Handout 6.8 - Landlord and Tenant - Frequently Asked Questions as a source of factual data to be used in comparing the perceptions with the reality of Saskatchewan law. Provide Student Handout 6.9 - Resolving Landlord Tenant Disputes as further data, if useful.
Issues in the Law
1.Should statute law protect consumers from the concept of caveat emptor (buyer beware)?
2.Do product warranties favour the consumer or the seller? Explain.
Student Handout 6.1 - Consumer Rights and Responsibilities
Student Handout 6.2 - A Summary of The Consumer Protection Act
Teacher Information Sheet 6.2 - The Consumer Protection Act
Student Handout 6.3 - Sellers’ Responsibilities
Student Handout 6.4 - Buying a Used Car
Student Handout 6.5 - Buying From a Retailer
Student Handout 6.6 - Returning Stuff
Student Handout 6.7 - Buying Through the Mail
Student Handout 6.8 - Landlords and Tenants FAQ
Student Handout 6.9 - Resolving Landlord and Tenant Disputes
| Skills/Abilities Objectives |
Values Objectives |
| Identify components of a valid contract from a sample. Research the rights of tenants and landlords in rental accommodation relationships under Saskatchewan law. Identify and apply criteria to make judgements. |
Appreciate that discrimination in the rental housing market is prohibited on the basis of protected grounds of the Saskatchewan Human Rights Code. Assess current advertising approaches in terms of their accuracy, and possible impact on the buyer. |
Instructional Notes
1.Have students create or select advertisements that:
· meet the criteria of lawful advertising
· would be illegal according to one or more criteria of statute law.
2.Gather some sample copies of rental accommodation contracts. Have students examine the terms and conditions of the contracts, and describe the terms of the contract in their own words. Have students assess the contracts according to criteria, which might include:
· offer
· acceptance
· consideration.
3.Engage students in a process of writing a letter of complaint regarding a retail purchase, using the criteria presented in Student Handout 6.10 - Consumer Complaints, Student Handout 6.11- Complaint Checklist and Student Handout 6.12 - Letter of Complaint.
Issues in the Law
1.To what degree should limits be placed on landlords regarding to whom accommodations should be rented?
Student Handout 6.10 - Consumer Complaints
Student Handout 6.11 - Complaint Checklist
Student Handout 6.12 - Letter of Complaint
| Content (Teacher Information) |
Concepts and Knowledge Objectives |
| Intellectual Property Intellectual property includes anything produced from an individual’s creativity. In Canada, protection of the rights of the creators of intellectual property is provided via federal statute law. There are four primary area of intellectual property law: · patent - rights to a new invention · industrial design - the right to manufacture a product of unique design · trade mark - a mark used to identify a product, and to increase the likelihood of consumer loyalty to a product · copyright - the right to copy and perform literary, musical or artistic work.
Issues in Contract Law While the law of contract has developed over time through common law, emerging technologies provide challenges in the application of contract law. Issues such as the sale of human tissue (organs), ownership and patent of seed grains and access to health services all create new challenges for public policy and the application of contract law. Issues emerge regarding the degree to which private ordering of services should occur between two willing parties to a contract, as compared to the degree to which public policy and statute law should regulate such things as the sale of human organs, the rights of surrogate parents and ownership of grains for seed. Contract law has served as the guide to the allocation of rights in such matters, but public policy and personal beliefs may be in conflict with the law of contract. As well, emerging technologies such as facsimile machines and computers now cloud the issue of when a contract offer and acceptance actually occur, along with debate regarding which circumstances should be addressed under the common law of contract, and which circumstances should be addressed through statute law. |
Intellectual Property Know that intellectual property is anything generated from an individual’s creativity. Patent Know that a patent is a document that gives its owner the exclusive right to make, use and sell an item in Canada. In return, the patent holder must disclose how the invention is manufactured. Know that patent protection in Canada exists under the federal Patent Act. Know that a patent gives the inventor exclusive rights to a creation for 20 years. Know that under the Patent Cooperation Treaty, inventors may patent protection in 43 countries, using one international application. Industrial Design Know that an industrial design includes the shape, distinctive appearance or other design unique to a product. Know that protection of industrial design exists under the federal Industrial Design Act, which grants design rights for a period five years, with this period being renewable. Trade Mark Know that a trademark is a word, symbol or picture, used to distinguish products from others in the marketplace. Know that trade marks are protected under the federal Trade Marks Act. Copyright Know that copyright provides protection to the creators of literary, photographic, musical and artistic works, providing monopoly with respect to the sale, display, performance and control of the copyright work. Know that copyright is protected under the federal Copyright Act.
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| Skills/Abilities Objectives |
Values Objectives |
| Select and apply criteria to make decisions. |
Appreciate the value of literary, artistic and other creative pursuits as valuable entities to the creator and society at large. |
Instructional Notes
1.Examine the case of Saskatchewan farmer Percy Schmeiser, and his conflict with a multinational agricultural conglomerate regarding the ownership of patented seed grains.
2.Identify advantages and disadvantages to patent, industrial design, trade mark and copyright protection laws, from the perspective of a consumer, an inventor or creator, and the overall public interest.
3.Investigate the case of the organic food producers group in Saskatchewan against agricultural chemical corporations.
Issues in the Law
1.Should patents be available for new plants created through genetic engineering?
2.Should a patent be available with respect to the human genome? Explain.
3.What type of patent protection should pharmaceutical developers receive for new medications developed?
