Exam 12: The Discharge of Contracts

Each province in Canada has a Limitations Act.Which of the following statements correctly describes what happens to a contract after the time set forth in the Act has expired?

L contracted with M for the supply and installation of building materials and the renovation of M's property.L made certain payments,but refused to pay the balance because of defects in the workmanship.Evidence indicated that M had substantially completed the contract.In this case,

Munson Fixtures Inc.has contracted with Weibe Installations to provide faucets for a major building project.The contract specifies that 400 Munson 6LS faucets shall be delivered on June 8.Similar faucets are made by other manufacturers.Which of the following is the only situation where the contract might be discharged by frustration?

Because frustration is only available for unanticipated or unforeseen events,and because the rules are arbitrary,what can contracting parties do to better manage the legal risks?

S contracted to build a machine for F for a price of $8800.00.F paid $1000.00 on account.When the machine was nearly completed,S refused to do more unless F paid another $3000.00.F sued to recover the $1000.00 and for other compensation,and S counterclaimed for the contract price.Expert evidence indicated that the machine was not substantially completed at the time of F's refusal to do more.In this situation at common law,

Bulldog Logging Co.agreed to clear 40 hectares of land for Palmer Construction Corp. ,who had paid in advance for this service.Later,Palmer realized that they only needed 35 hectares cleared and released Bulldog Logging from the contract after they had cleared just 35 hectares.What should take place in order for the original contract to be legally discharged?

David,a manufacturer's agent,is under contract to represent Joseph Tool Co.in western Canada.This contract contains "an option to terminate" clause.What is the likely meaning of this clause?

A has just hired B as his employee.The contract,which is in writing and for a two-year term,contains a provision that states that the first three months of B's employment is a probationary period during which A will determine whether B's employment will continue.At the end of the three-month period,A advises B that B's services are no longer required.In this case,

A contract that is discharged by performance is one in which the respective legal obligations of the parties have been fulfilled.

Contracts can be discharged by agreement.Name and describe four examples of discharge by agreement.

The general rule for the discharge of a contract through frustration is as follows:

A agrees to build a machine for B by September 1 for $3000.00.On August 15,both A and B agree not to proceed with the contract.In this situation,

Give an example of self-induced frustration.What is the legal result?

A contract provides for its own dissolution when there is

Interlake Shipping Co.transports grain in large barges across Lake Michigan.In March,one of its barges was caught in an ice flow,where it "jammed," with the resultant destruction of its cargo.The carrier's property insurance refused to pay because the hazard was not covered under the policy.And the owner of the cargo had no insurance.Does this occurrence fall under the doctrine of frustration for the carrier?

Tender of performance means to perform an obligation under a contract.

When there is a contract for sale of goods,destruction of the source of the goods will frustrate the contract.

A and B enter into a contract whereby A agrees to supply B with 10 000 tins of tuna at the rate of 1000 tins per month from his tuna factory in Bayport,Nova Scotia,and B agrees to pay A $2 per tin.A supplies 1000 tins of tuna,but before he can collect,his factory is destroyed by fire.If the contract is discharged by frustration,which of the following statements is correct?

In December,a California importer contracted with a Guatemala exporter for a plane load of roses to be shipped to Los Angles from Guatemala City the first week in February.Because of a regional hail storm in January,the exporter's usual sources of supply dried up to the extent that he could not obtain sufficient quantities of quality roses in Guatemala,so arranged for a shipment from the Cameron Highlands in Malaysia.When the shipment arrived in Los Angles,the importer refused it-based on the fact the roses didn't come from Guatemala.Give the legal arguments of each party.

What is tender of performance,and why would a party to a contract make a tender of performance?