Question 1

Explain why it is necessary for an innocent party to mitigate the damages occasioned by a breach of contract.

Accepted Answer

This is because in determining the damag

Question 2

An award of damages

Accepted Answer

A) seldom comes out of a case for breach. 
B) aims to place the injured party in the same position as if the contract had been completed. 
C) is an "equitable remedy" for breach. 
D) usually accompanies a rescission. 
E) is a tool used by the courts to act as a punishment to those who breach a contract. 
A) seldom comes out of a case for breach. 
B) aims to place the injured party in the same position as if the contract had been completed. 
C) is an "equitable remedy" for breach. 
D) usually accompanies a rescission. 
E) is a tool used by the courts to act as a punishment to those who breach a contract.

Question 3

Explain the circumstances under which a claim of quantum meruit would be successful.

Accepted Answer

Quantum meruit exists when there is a re

Question 4

Describe why the doctrine of substantial performance is of practical importance.

Accepted Answer

The doctrine of substantial performance

Question 5

The remedy of rescission involves suspending the operation of a contract temporarily.

Accepted Answer

A) True 
 B)False

Question 6

Danny agreed to sell a large painting to Mary for $5000.It has a sentimental value to Mary-being a painting of her house in 1938.Before delivery,Danny discovered the sentimental interest of Mary and refused to sell it at the agreed-upon price.Which of the following statements is correct?

Accepted Answer

A) Mary is entitled to damages of $5000. 
B) Mary could claim the remedy of specific performance because the painting is so special to her. 
C) Danny can demand compensation for the painting's full esthetic value. 
D) Mary is not entitled to an equitable remedy because the subject of the contract is not real property. 
E) Danny does not have to deliver the painting at the original price because of the doctrine of mistaken value. 
A) Mary is entitled to damages of $5000. 
B) Mary could claim the remedy of specific performance because the painting is so special to her. 
C) Danny can demand compensation for the painting's full esthetic value. 
D) Mary is not entitled to an equitable remedy because the subject of the contract is not real property. 
E) Danny does not have to deliver the painting at the original price because of the doctrine of mistaken value.

Question 7

What is the distinction between a minor breach and a major breach?

Accepted Answer

The breach of a non-essential term of a

Question 8

Explain the attitude of the courts towards the use of exemption clauses.

Accepted Answer

The courts generally frown on the use of

Question 9

In a contract of sale,where the seller fails to deliver goods on time,the measure of damages will normally be

Accepted Answer

A) the loss or losses that is/are reasonably foreseeable by the seller at the time the contract was made. 
B) only the loss or losses that occur(s)at the time of the breach. 
C) the loss or losses that is/are reasonably foreseeable by the seller at the time of the breach. 
D) all losses,whether or not reasonably foreseeable by the seller. 
E) only the loss or losses that is/are reasonably foreseeable by the buyer at the time the contract was made. 
A) the loss or losses that is/are reasonably foreseeable by the seller at the time the contract was made. 
B) only the loss or losses that occur(s)at the time of the breach. 
C) the loss or losses that is/are reasonably foreseeable by the seller at the time of the breach. 
D) all losses,whether or not reasonably foreseeable by the seller. 
E) only the loss or losses that is/are reasonably foreseeable by the buyer at the time the contract was made.

Question 10

Where the losses suffered by an innocent party for breach of contract are minimal in nature,an award of damages

Accepted Answer

A) may be outweighed by the litigation costs incurred by the innocent party. 
B) will be a vindication of the innocent party. 
C) will usually be pursued as a matter of principle. 
D) establishes the validity of the innocent party's claim. 
E) all of the above 
A) may be outweighed by the litigation costs incurred by the innocent party. 
B) will be a vindication of the innocent party. 
C) will usually be pursued as a matter of principle. 
D) establishes the validity of the innocent party's claim. 
E) all of the above

Question 11

When there is significant imbalance in the bargaining power of the parties,the stronger party can take an unfair advantage of the weaker one by extracting agreement to unconscionable terms.With respect to exemption clauses,what obligations have been imposed on Internet retailers pursuant to Ontario's consumer protection laws?

Accepted Answer

Internet retailers are required to provi

Question 12

Troy Feldmon agreed to purchase a house from Jenny King for $60 000.Jenny King had previously agreed to sell the house to another individual,but that transaction had not been completed due to the purchaser's default.Jenny was very concerned that steps be taken to ensure Troy was serious about completing the purchase,so she demanded a deposit of $20 000 and that the contract state "in the event that the purchaser does not complete the transaction the entire deposit would be forfeited as liquidated damages." As it happened,Troy was unable to complete the purchase due to an unexpected financial setback.Jenny King then declared the deposit forfeited.Will Troy be able to recover all or part of his deposit?

Accepted Answer

The court will abide by the parties' cal

Question 13

Jack has a contract to deliver goods to Jim on June 2.On May 31,Jack calls Jim and advises him that he cannot deliver the goods on June 2.This is

Accepted Answer

A) an anticipatory breach. 
B) an early breach. 
C) an implied repudiation. 
D) an early termination. 
E) a rescission. 
A) an anticipatory breach. 
B) an early breach. 
C) an implied repudiation. 
D) an early termination. 
E) a rescission.

Question 14

Jack agrees to paint the home of Jim.During the negotiations,Jim leads Jack to believe that he is in some financial predicament and so cannot pay the full fee.Jack agrees to give him a discount because of his predicament.A few days before Jack is due to perform,he learns from a source that Jim is a very wealthy man.Jack decides that because he has been tricked he will not honour his obligation to paint the home.He gives away all his tools and equipment and tells Jim that he cannot paint the home because his tools have been stolen.Jack's conduct is

Accepted Answer

A) a breach of contract by implied repudiation. 
B) a breach of a condition. 
C) not a breach of contract. 
D) a breach of contract because Jack's conduct renders performance impossible. 
E) a breach of contract by express repudiation. 
A) a breach of contract by implied repudiation. 
B) a breach of a condition. 
C) not a breach of contract. 
D) a breach of contract because Jack's conduct renders performance impossible. 
E) a breach of contract by express repudiation.

Question 15

Hastro Toys Mfg.operates on a "just-in-time" inventory basis.When one of its suppliers missed a 2:00 p.m.delivery of a key component,the entire assembly line was shut down for the balance of the day.Hastro is suing its supplier for ________ damages.

Accepted Answer

A) reliance 
B) expectation 
C) liquidated 
D) consequential 
E) general 
A) reliance 
B) expectation 
C) liquidated 
D) consequential 
E) general

Question 16

When a breach of contract has occurred,the purpose of damages is to

Accepted Answer

A) make the case an example to the rest of the community that this type of behaviour will not be tolerated. 
B) have the damages reflect the severity of the breach. 
C) compensate the wronged party for the loss incurred. 
D) provide a deterrent for the breaking of moral and legal obligations. 
E) punish the party who has committed the breach by making him or her pay compensation. 
A) make the case an example to the rest of the community that this type of behaviour will not be tolerated. 
B) have the damages reflect the severity of the breach. 
C) compensate the wronged party for the loss incurred. 
D) provide a deterrent for the breaking of moral and legal obligations. 
E) punish the party who has committed the breach by making him or her pay compensation.

Question 17

The expression that damages must flow naturally from the breach of a contract has been meant to refer to only those damages that actually flow from the breach.

Accepted Answer

A) True 
 B)False

Question 18

Jack has a contract to deliver goods to Jim on June 2.On the morning of June 2,Jack tells Jim that he will not be able to deliver the goods as promised.This is

Accepted Answer

A) an express repudiation of the contract. 
B) a rescission of the contract. 
C) an implied repudiation. 
D) a minor breach. 
E) a warranty. 
A) an express repudiation of the contract. 
B) a rescission of the contract. 
C) an implied repudiation. 
D) a minor breach. 
E) a warranty.

Question 19

The fact that a party enters into a contract with knowledge of special liability if it fails to perform

Accepted Answer

A) has a direct effect on the amount of damages that will be awarded against it. 
B) has no material effect on the amount of damages that will be awarded against it. 
C) has the effect of rendering the contract a nullity in the event of a breach. 
D) has a minimal effect on the amount of damages that will be awarded against it. 
E) none of the above 
A) has a direct effect on the amount of damages that will be awarded against it. 
B) has no material effect on the amount of damages that will be awarded against it. 
C) has the effect of rendering the contract a nullity in the event of a breach. 
D) has a minimal effect on the amount of damages that will be awarded against it. 
E) none of the above

Question 20

In rare circumstances courts have awarded punitive damages if the behaviour of the breaching party is considered to be

Accepted Answer

A) malicious. 
B) in bad faith. 
C) high-handed. 
D) arbitrary. 
E) any of the above 
A) malicious. 
B) in bad faith. 
C) high-handed. 
D) arbitrary. 
E) any of the above

Exam 13: Breach of Contract and Its Remedies

Explain why it is necessary for an innocent party to mitigate the damages occasioned by a breach of contract.

An award of damages

Explain the circumstances under which a claim of quantum meruit would be successful.

Describe why the doctrine of substantial performance is of practical importance.

The remedy of rescission involves suspending the operation of a contract temporarily.

Danny agreed to sell a large painting to Mary for $5000.It has a sentimental value to Mary-being a painting of her house in 1938.Before delivery,Danny discovered the sentimental interest of Mary and refused to sell it at the agreed-upon price.Which of the following statements is correct?

What is the distinction between a minor breach and a major breach?

Explain the attitude of the courts towards the use of exemption clauses.

In a contract of sale,where the seller fails to deliver goods on time,the measure of damages will normally be

Where the losses suffered by an innocent party for breach of contract are minimal in nature,an award of damages

Jack has a contract to deliver goods to Jim on June 2.On May 31,Jack calls Jim and advises him that he cannot deliver the goods on June 2.This is

Hastro Toys Mfg.operates on a "just-in-time" inventory basis.When one of its suppliers missed a 2:00 p.m.delivery of a key component,the entire assembly line was shut down for the balance of the day.Hastro is suing its supplier for ________ damages.

When a breach of contract has occurred,the purpose of damages is to

The expression that damages must flow naturally from the breach of a contract has been meant to refer to only those damages that actually flow from the breach.

Jack has a contract to deliver goods to Jim on June 2.On the morning of June 2,Jack tells Jim that he will not be able to deliver the goods as promised.This is

The fact that a party enters into a contract with knowledge of special liability if it fails to perform

In rare circumstances courts have awarded punitive damages if the behaviour of the breaching party is considered to be

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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