Gabriel Entered into a Contract with Paradise Equestrian Services

question 21

Multiple Choice

Gabriel entered into a contract with Paradise Equestrian Services. (PES) The purpose of the contract was to allow Gabriel's son, Archie, to learn to ride horses. The situation was somewhat complicated by the fact that while Gabriel lived in Prince Edward Island, Archie was starting college in British Columbia, where PES was also located. In an attempt to make it easier for Archie to take action on the contract, if any problems arose, Gabriel made sure that the agreement contained Paragraph 13, which says, "The promise given by PES is hereby acquired legally by Gabriel and equitably by Archie." Which of the following statements is TRUE?

• A) As a result of Paragraph 13 of the contract, Archie can properly be classified as trust beneficiary, rather than as a third party beneficiary.
• B) Archie is a party to the contract by virtue of an assignment.
• C) The facts demonstrate the concept of vicarious performance.
• D) Archie can sue on the contract only if he personally provided consideration.
• E) The tactic that Gabriel tried to use in this case was abolished by the Privy Council in Vandepitte v Preferred Accident Insurance Co.

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Definitions:

Vroom-Jago

relates to a leadership model that emphasizes decision-making styles and their appropriateness based on the situation, leader characteristics, and follower involvement.

Leader-Participation Model

A theory that provides a framework to predict the best level of participation by subordinates in decision-making based on situational variables.

Group Decision

A decision-making process where outcomes are determined collectively by a group rather than an individual.

Vroom-Jago

A leadership model that helps in decision-making processes by evaluating the effectiveness of participative, consultative, and autocratic leadership styles in various scenarios.