Which of the Following Forms the Basis of a Common

question 9

Multiple Choice

Which of the following forms the basis of a common argument for setting aside a contract based on mistake that will rarely succeed in Canadian courts?

• A) misunderstanding of the legal consequences of giving an oral guarantee
• B) misunderstanding of the terms of an oral contract dealing with land
• C) misunderstanding of the nature or type of contract signed by the party
• D) misunderstanding that a contract is not to be performed within one year

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Definitions:

CCA Class

A grouping in Canadian tax law under the Capital Cost Allowance, determining the rate at which assets can be depreciated for tax purposes.

Discount Rate

The interest rate used to discount future cash flows to their present value, significant in determining the attractiveness of an investment.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, and other factors.

CCA Class

Canadian Controlled Private Corporation (CCA) Class refers to a system of categorizing assets for tax depreciation purposes in Canada, allowing businesses to claim the cost of capital assets over time.