Question 1

A breach of warranty will bring the contract to an end.

Accepted Answer

A) True 
 B)False

Question 2

A condition subsequent is an example of a contract being ended by agreement.

Accepted Answer

A) True 
 B)False

Question 3

The victim of a breach cannot recover damages that he could have avoided if he had made a reasonable effort.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is correct with respect to breach of contract?

Accepted Answer

A)  When a condition is breached, the victim can treat the contract as ended. 
B)  When a condition is breached, a person can only sue for damages but must perform their part of the contract. 
C)  When a warranty is breached, the victim can treat the contract as ended. 
D)  When a contract for the purchase of goods is breached, the warranty will require that the goods be repaired by the seller. 
E)  When a contract is repudiated before performance is due, the victim must wait until the time of performance before taking any action. 
A)  When a condition is breached, the victim can treat the contract as ended. 
B)  When a condition is breached, a person can only sue for damages but must perform their part of the contract. 
C)  When a warranty is breached, the victim can treat the contract as ended. 
D)  When a contract for the purchase of goods is breached, the warranty will require that the goods be repaired by the seller. 
E)  When a contract is repudiated before performance is due, the victim must wait until the time of performance before taking any action.

Question 5

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Accepted Answer

A)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
E)  The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract. 
A)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
E)  The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract.

Question 6

"When the court determines that a breach of contract has taken place, they will award monetary compensation in the form of damages to put the person in the position he would have been in had the contract been properly performed." Discuss the accuracy of this statement.

Accepted Answer

The statement is accurate. Whe

Question 7

A condition precedent is an example of a contract being ended by agreement.

Accepted Answer

A) True 
 B)False

Question 8

Indicate the various ways that the contractual relationship can come to an end.

Accepted Answer

A contractual relationship can end by pe

Question 9

Which of the following is true with regard to remedies for breach of contract?

Accepted Answer

A)  The amount of damages to be given to the victim of the breach may be limited to the amount specified in a liquidated damages clause of her contract. 
B)  The victim of a breach can recover damages that he could have avoided if he had tried to mitigate his loss. 
C)  A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable. 
D)  An injunction is an equitable remedy forcing a person to comply with the terms of the contract. 
E)  Specific performance is the proper remedy to stop a person from doing something that he had promised in the contract not to do (e.g., not to compete, not to disclose secrets, etc.). 
A)  The amount of damages to be given to the victim of the breach may be limited to the amount specified in a liquidated damages clause of her contract. 
B)  The victim of a breach can recover damages that he could have avoided if he had tried to mitigate his loss. 
C)  A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable. 
D)  An injunction is an equitable remedy forcing a person to comply with the terms of the contract. 
E)  Specific performance is the proper remedy to stop a person from doing something that he had promised in the contract not to do (e.g., not to compete, not to disclose secrets, etc.).

Question 10

Joe agreed to sell Sam his model-T Ford automobile. The day before delivery, he took it out for one last drive. Through his own fault, he got into a collision in which the car was destroyed. Because it was impossible to go through with the terms of the contract, he claimed that it was frustrated. Discuss the legal position of the parties.

Accepted Answer

This is not frustrat

Question 11

Sam entered into a contract for the purchase of a used dump truck from Joe's Heavy Duty Trucks. The written contract clearly specified, among other things, that "it shall be a warranty to this contract that the truck has the capacity of carrying and properly dumping loads of up to 4000 kg of gravel." In fact, when Sam loaded the truck with 4000 kg of gravel, he discovered that the hoist on the truck was not capable of dumping it. Only if the load was reduced to 3000 kg could the gravel be dumped. Sam obtained an estimate stating that it would cost $8000 to reinforce the hoist mechanism of the truck so that it could handle dumping 4000 kg of gravel. When Sam approached Joe demanding satisfaction, Sam pointed out another term of the agreement that stated that in the event of a breach of contract the "maximum damages payable to the purchaser are limited to $5000." Sam sued. Which of the following statements is correct with respect to the legal position of the parties?

Accepted Answer

A)  Sam must keep the truck and sue for damages, but those damages are limited to $5000. 
B)  Sam can treat his obligation as over, return the truck, and demand the return of his purchase price. 
C)  Sam must keep the truck but can obtain the $8000 in damages or what it takes to repair the hoist mechanism. 
D)  Sam can get an order of specific performance, which will force the seller, Joe, to fix the truck even if it does cost $8000. 
E)  There is nothing Sam can do as this was a breach of warranty. 
A)  Sam must keep the truck and sue for damages, but those damages are limited to $5000. 
B)  Sam can treat his obligation as over, return the truck, and demand the return of his purchase price. 
C)  Sam must keep the truck but can obtain the $8000 in damages or what it takes to repair the hoist mechanism. 
D)  Sam can get an order of specific performance, which will force the seller, Joe, to fix the truck even if it does cost $8000. 
E)  There is nothing Sam can do as this was a breach of warranty.

Question 12

Mable grew a field of corn and agreed to provide 300 ears of corn to Jan's Produce in the months of August and September. Unfortunately, her crop was destroyed by hail and she was unable to make the delivery. Jan sued for breach of contract. Discuss the likely outcome.

Accepted Answer

Jan would win. Mable should ha

Question 13

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

Accepted Answer

A) True 
 B)False

Question 14

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

Accepted Answer

A)  If no deposit had been paid, there could be no contract. 
B)  The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach. 
C)  If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference. 
D)  The deposit must be a fair reflection of the loss actually suffered. 
E)  A down-payment is an amount of money to be forfeited if either party is in breach of contract. 
A)  If no deposit had been paid, there could be no contract. 
B)  The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach. 
C)  If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference. 
D)  The deposit must be a fair reflection of the loss actually suffered. 
E)  A down-payment is an amount of money to be forfeited if either party is in breach of contract.

Question 15

________ occurs when the court orders the defaulting party to live up to the terms of the contract.

Accepted Answer

A)  An injunction 
B)  Specific performance 
C)  An accounting 
D)  Quantum meruit 
E)  Compensation 
A)  An injunction 
B)  Specific performance 
C)  An accounting 
D)  Quantum meruit 
E)  Compensation

Question 16

Explain the limitations on the ability to request and receive equitable remedies in breach of contract cases.

Accepted Answer

Students should begin by noting that equ

Question 17

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10,000 to be forfeited in the event of Mike's failing to go through with the deal. This deposit was an honest estimate of the damages Rita would suffer. On these facts, which of the following is true?

Accepted Answer

A)  If Mike breaches the contract, he will have to pay Rita all the damages that directly and naturally flow from the breach. 
B)  If Mike breaches the contract, he would not have to pay $10,000, even if Rita suffered a substantial loss. 
C)  If Mike breaches the contract, he would have to pay $10,000 even if Rita's actual loss was $40,000. 
D)  If the contract price agreed upon was $150,000 and Rita, after Mike breaches the contract, sells the house in one week for $138,000, she will still be able to recoup all her losses. 
E)  A clause in a contract that provides for the forfeiture of a deposit is called an exemption clause. 
A)  If Mike breaches the contract, he will have to pay Rita all the damages that directly and naturally flow from the breach. 
B)  If Mike breaches the contract, he would not have to pay $10,000, even if Rita suffered a substantial loss. 
C)  If Mike breaches the contract, he would have to pay $10,000 even if Rita's actual loss was $40,000. 
D)  If the contract price agreed upon was $150,000 and Rita, after Mike breaches the contract, sells the house in one week for $138,000, she will still be able to recoup all her losses. 
E)  A clause in a contract that provides for the forfeiture of a deposit is called an exemption clause.

Question 18

If a victim of an anticipatory breach continues to insist on performance, what danger does he face?

Accepted Answer

That some outside, unforeseen event will

Question 19

Explain what is meant by quantum meruit.

Accepted Answer

When a person requests a service such as

Question 20

Rick was a talented computer programmer and had agreed to work for Bill in his successful computer software business, signing a one-year contract to that effect. On the day he was to start work, and after a week of training where he learned a considerable amount of confidential information about Bill's operation, he phoned Bill and announced that he was going to work for Bill's competitor instead. Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  Specific performance 
B)  Accounting 
C)  Injunction 
D)  No remedy 
E)  Rescission 
A)  Specific performance 
B)  Accounting 
C)  Injunction 
D)  No remedy 
E)  Rescission

A breach of warranty will bring the contract to an end.

A condition subsequent is an example of a contract being ended by agreement.

The victim of a breach cannot recover damages that he could have avoided if he had made a reasonable effort.

Which of the following statements is correct with respect to breach of contract?

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

"When the court determines that a breach of contract has taken place, they will award monetary compensation in the form of damages to put the person in the position he would have been in had the contract been properly performed." Discuss the accuracy of this statement.

A condition precedent is an example of a contract being ended by agreement.

Indicate the various ways that the contractual relationship can come to an end.

Which of the following is true with regard to remedies for breach of contract?

Mable grew a field of corn and agreed to provide 300 ears of corn to Jan's Produce in the months of August and September. Unfortunately, her crop was destroyed by hail and she was unable to make the delivery. Jan sued for breach of contract. Discuss the likely outcome.

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

________ occurs when the court orders the defaulting party to live up to the terms of the contract.

Explain the limitations on the ability to request and receive equitable remedies in breach of contract cases.

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10,000 to be forfeited in the event of Mike's failing to go through with the deal. This deposit was an honest estimate of the damages Rita would suffer. On these facts, which of the following is true?

If a victim of an anticipatory breach continues to insist on performance, what danger does he face?

Explain what is meant by quantum meruit.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 9: The End of the Contractual Relationship

A breach of warranty will bring the contract to an end.

A condition subsequent is an example of a contract being ended by agreement.

The victim of a breach cannot recover damages that he could have avoided if he had made a reasonable effort.

Which of the following statements is correct with respect to breach of contract?

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

"When the court determines that a breach of contract has taken place, they will award monetary compensation in the form of damages to put the person in the position he would have been in had the contract been properly performed." Discuss the accuracy of this statement.

A condition precedent is an example of a contract being ended by agreement.

Indicate the various ways that the contractual relationship can come to an end.

Which of the following is true with regard to remedies for breach of contract?

Mable grew a field of corn and agreed to provide 300 ears of corn to Jan's Produce in the months of August and September. Unfortunately, her crop was destroyed by hail and she was unable to make the delivery. Jan sued for breach of contract. Discuss the likely outcome.

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

________ occurs when the court orders the defaulting party to live up to the terms of the contract.

Explain the limitations on the ability to request and receive equitable remedies in breach of contract cases.

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10,000 to be forfeited in the event of Mike's failing to go through with the deal. This deposit was an honest estimate of the damages Rita would suffer. On these facts, which of the following is true?

If a victim of an anticipatory breach continues to insist on performance, what danger does he face?

Explain what is meant by quantum meruit.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters