Question 1

Explain what is meant by an anticipatory breach.

Accepted Answer

This is where one of the parti

Question 2

Mr. Jones rented an apartment to Ms. Smith under a one-year tenancy agreement. Ms. Smith abandoned the apartment after three months. Jones located Smith and sued her for breach of contract. Which of the following is the best statement with regard to the damages Jones can recover?

Accepted Answer

A)  Jones can recover damages equivalent to nine months' rent, even if the apartment is rented again. 
B)  Jones can recover damages equivalent to nine months' rent less whatever rent was received from a subsequent tenant of that apartment. 
C)  Jones can recover all the damages that directly and naturally flow from the breach, no matter how unforeseeable. 
D)  Jones can recover nothing, even if it takes six months to rent the apartment again. 
E)  Jones can recover nothing. When dealing with land, the appropriate remedy is specific performance. 
A)  Jones can recover damages equivalent to nine months' rent, even if the apartment is rented again. 
B)  Jones can recover damages equivalent to nine months' rent less whatever rent was received from a subsequent tenant of that apartment. 
C)  Jones can recover all the damages that directly and naturally flow from the breach, no matter how unforeseeable. 
D)  Jones can recover nothing, even if it takes six months to rent the apartment again. 
E)  Jones can recover nothing. When dealing with land, the appropriate remedy is specific performance.

Question 3

In Nicolaou v. Sobhani the parties had a contract for the purchase and sale of a lot. Before the completion date the purchaser alleged misrepresentation on the lot size and instructed their lawyer to ask for the return of the deposit. Was this an anticipatory breach that entitled the seller to keep the deposit? What risk reduction should parties consider in this situation?

Accepted Answer

The Court confirmed that anticipatory br

Question 4

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Accepted Answer

A) True 
 B)False

Question 5

Joe was a student at the local college and agreed to paint Harry's house during the Easter Break. A month before that time, he informed Harry that he had an opportunity to go to Hawaii and that he wouldn't be painting the house. What can Harry do in these circumstances?

Accepted Answer

Either he can demand performance, wait f

Question 6

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered. Indicate two limitations on this principle.

Accepted Answer

Limitations on this principle are remote

Question 7

"Clean hands" refers to the absence of wrongdoing on the part of a person seeking an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 8

For a contract to be frustrated, performance must be impossible.

Accepted Answer

A) True 
 B)False

Question 9

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 10

"For a contract to be frustrated, performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Accepted Answer

This statement is inaccurate. It still m

Question 11

Discuss the equitable remedies that were developed in contract law and why they were necessary.

Accepted Answer

Students must show an understanding of t

Question 12

What is the usual impact of an exemption clause in the event of fundamental breach?

Accepted Answer

It is usually ineffective in t

Question 13

The courts will grant an order of specific performance to compel performance of a contract for personal services.

Accepted Answer

A) True 
 B)False

Question 14

Perfect Programs Ltd. hired Gill, who had training not only in programming but also in pharmacy management, to create a computer program for use in a pharmacy to take care of all its needs with regard to inventory, billings, prescriptions, etc. The employment contract provided for a three-year term with no provision for early termination and the following covenant: "The employee, upon his leaving the employ of the employer, shall not compete, directly or indirectly, in any capacity whatsoever, within five miles of this place of employment." After Gill had been there for two years and the project was only months away from completion, he was approached by a representative of Big Big Co. (with offices in the same building), who offered Gill a job with, among other things, a higher salary and more staff to help him complete a program for use by drugstores. Gill accepted. To replace Gill, Perfect Programs Ltd. hired a man from New York with the same training as Gill and sued Gill for breach of contract. Which of the following is true?

Accepted Answer

A)  Gill is not in breach of contract because the restrictive covenant is illegal, so the whole contract is void. 
B)  Gill will have to pay damages for all the loss that directly flows from the breach no matter how improbable. 
C)  If Gill knew that there would be a delay before the new employee could reach the level Gill had attained before his departure, the costs of the delay would be factored into the damages. 
D)  Perfect Programs Ltd. could have abandoned the project and just sued Gill for the entire anticipated lost profit. 
E)  Perfect Programs Ltd. could get an injunction against Gill because the restrictive covenant is reasonable in this form. 
A)  Gill is not in breach of contract because the restrictive covenant is illegal, so the whole contract is void. 
B)  Gill will have to pay damages for all the loss that directly flows from the breach no matter how improbable. 
C)  If Gill knew that there would be a delay before the new employee could reach the level Gill had attained before his departure, the costs of the delay would be factored into the damages. 
D)  Perfect Programs Ltd. could have abandoned the project and just sued Gill for the entire anticipated lost profit. 
E)  Perfect Programs Ltd. could get an injunction against Gill because the restrictive covenant is reasonable in this form.

Question 15

In Blundon v. Ashton Pools, the plaintiff sued the defendant after discovering cracks in the patio that surrounded the pool the defendant had installed for them. The defendant claimed that the exemption clause in the contract excused them from liability. What properly described the outcome in this case?

Accepted Answer

A)  The exemption clause protected Ashton Pools because of the principle of "freedom to contract". 
B)  The exemption clause protected Ashton Pools because Blundon was made aware of the clause prior to signing the contract. 
C)  The exemption clause did not protect Ashton Pools because it was an illegal restraint of trade. 
D)  The exemption clause was not applied as the damage was not an Act of God and Ashton Pools failed to bring the clause to the attention of Blundon. 
E)  The exemption clause was not applied as it did not pertain to the damage that was caused. 
A)  The exemption clause protected Ashton Pools because of the principle of "freedom to contract". 
B)  The exemption clause protected Ashton Pools because Blundon was made aware of the clause prior to signing the contract. 
C)  The exemption clause did not protect Ashton Pools because it was an illegal restraint of trade. 
D)  The exemption clause was not applied as the damage was not an Act of God and Ashton Pools failed to bring the clause to the attention of Blundon. 
E)  The exemption clause was not applied as it did not pertain to the damage that was caused.

Question 16

Which of the following statements is true with respect to the law of damages?

Accepted Answer

A)  Damages are intended to punish the wrongdoer for breaching the contract. 
B)  Damages are awarded for a breach of a condition but not for a breach of warranty. 
C)  If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach. 
D)  Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do. 
E)  A deposit may be an amount of money a party to a contract agrees to forfeit if he or she breaches the contract. 
A)  Damages are intended to punish the wrongdoer for breaching the contract. 
B)  Damages are awarded for a breach of a condition but not for a breach of warranty. 
C)  If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach. 
D)  Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do. 
E)  A deposit may be an amount of money a party to a contract agrees to forfeit if he or she breaches the contract.

Question 17

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

Accepted Answer

A)  If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic has to take them. 
B)  If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said he wouldn't take a cheque. 
C)  If Jed shows up with cash for the mechanic on the day and at the place designated in the contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him. 
D)  If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again. 
E)  If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor seeks her out for payment. 
A)  If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic has to take them. 
B)  If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said he wouldn't take a cheque. 
C)  If Jed shows up with cash for the mechanic on the day and at the place designated in the contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him. 
D)  If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again. 
E)  If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor seeks her out for payment.

Question 18

The principle of substantial performance can best be described as when

Accepted Answer

A)  all or most of the contractual obligations are fulfilled. 
B)  a major term of the contract is mostly fulfilled. 
C)  minor terms of the contract are yet to be fulfilled. 
D)  minor terms of the contract are disregarded. 
E)  only exact compliance with the contract will qualify as performance. 
A)  all or most of the contractual obligations are fulfilled. 
B)  a major term of the contract is mostly fulfilled. 
C)  minor terms of the contract are yet to be fulfilled. 
D)  minor terms of the contract are disregarded. 
E)  only exact compliance with the contract will qualify as performance.

Question 19

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 buyer suffers a loss?

Accepted Answer

A)  A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions. 
B)  The buyer of an expensive computer software program received, a month after the sale, an invoice on which was printed an exemption clause that he hadn't been shown before. 
C)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms. 
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)  Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause. 
A)  A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions. 
B)  The buyer of an expensive computer software program received, a month after the sale, an invoice on which was printed an exemption clause that he hadn't been shown before. 
C)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms. 
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)  Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause.

Question 20

Which one of the following statements accurately describes the operation of a condition subsequent?

Accepted Answer

A)  This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract. 
B)  This is a term in a contract that must be met before the contract becomes fully operational. 
C)  This occurs when some event that the parties have not anticipated makes performance radically different from what they agreed to. 
D)  There is no such thing recognized in the common law. 
E)  This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event. 
A)  This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract. 
B)  This is a term in a contract that must be met before the contract becomes fully operational. 
C)  This occurs when some event that the parties have not anticipated makes performance radically different from what they agreed to. 
D)  There is no such thing recognized in the common law. 
E)  This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event.

Explain what is meant by an anticipatory breach.

Mr. Jones rented an apartment to Ms. Smith under a one-year tenancy agreement. Ms. Smith abandoned the apartment after three months. Jones located Smith and sued her for breach of contract. Which of the following is the best statement with regard to the damages Jones can recover?

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Joe was a student at the local college and agreed to paint Harry's house during the Easter Break. A month before that time, he informed Harry that he had an opportunity to go to Hawaii and that he wouldn't be painting the house. What can Harry do in these circumstances?

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered. Indicate two limitations on this principle.

"Clean hands" refers to the absence of wrongdoing on the part of a person seeking an equitable remedy.

For a contract to be frustrated, performance must be impossible.

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

"For a contract to be frustrated, performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Discuss the equitable remedies that were developed in contract law and why they were necessary.

What is the usual impact of an exemption clause in the event of fundamental breach?

The courts will grant an order of specific performance to compel performance of a contract for personal services.

Which of the following statements is true with respect to the law of damages?

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

The principle of substantial performance can best be described as when

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 buyer suffers a loss?

Which one of the following statements accurately describes the operation of a condition subsequent?

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

Explain what is meant by an anticipatory breach.

Mr. Jones rented an apartment to Ms. Smith under a one-year tenancy agreement. Ms. Smith abandoned the apartment after three months. Jones located Smith and sued her for breach of contract. Which of the following is the best statement with regard to the damages Jones can recover?

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Joe was a student at the local college and agreed to paint Harry's house during the Easter Break. A month before that time, he informed Harry that he had an opportunity to go to Hawaii and that he wouldn't be painting the house. What can Harry do in these circumstances?

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered. Indicate two limitations on this principle.

"Clean hands" refers to the absence of wrongdoing on the part of a person seeking an equitable remedy.

For a contract to be frustrated, performance must be impossible.

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

"For a contract to be frustrated, performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Discuss the equitable remedies that were developed in contract law and why they were necessary.

What is the usual impact of an exemption clause in the event of fundamental breach?

The courts will grant an order of specific performance to compel performance of a contract for personal services.

Which of the following statements is true with respect to the law of damages?

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

The principle of substantial performance can best be described as when

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 buyer suffers a loss?

Which one of the following statements accurately describes the operation of a condition subsequent?

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