Question 1

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

Accepted Answer

A)  This occurs when one party shows up at the right time and place ready, willing, and able 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 a contract that provides for the 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, willing, and able 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 a contract that provides for the cessation (ending) of the parties' obligations upon the occurrence of some particular event.

Question 2

Lack of financial ability, if proven, will establish frustration.

Accepted Answer

A) True 
 B)False

Question 3

Specific performance involves a court order to do something (to perform the contract), whereas a(n) ________ usually involves an order to refrain from some offensive conduct.

Accepted Answer

A)  injunction 
B)  damages award 
C)  equitable remedy 
D)  quantum meruit award 
E)  limitation period 
A)  injunction 
B)  damages award 
C)  equitable remedy 
D)  quantum meruit award 
E)  limitation period

Question 4

Injunction is an example of an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 5

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true with regard to ending a contract by agreement?

Accepted Answer

A)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract. 
B)  A contract can be ended by one party if he finds a better deal, e.g., by cancelling an order that has been accepted, as long as this is done before performance. 
C)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation. 
D)  A contract can be ended by agreement if one party has performed his obligation and agrees to take something as satisfaction from the other although that other hasn't performed according to the contract. 
E)  A contract can be ended unilaterally by one party. 
A)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract. 
B)  A contract can be ended by one party if he finds a better deal, e.g., by cancelling an order that has been accepted, as long as this is done before performance. 
C)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation. 
D)  A contract can be ended by agreement if one party has performed his obligation and agrees to take something as satisfaction from the other although that other hasn't performed according to the contract. 
E)  A contract can be ended unilaterally by one party.

Question 7

Damages are an example of an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 8

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

Accepted Answer

The other

Question 9

Victims of breach have a duty to mitigate damages, meaning they must do what they can to keep those damages as low as possible.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is false with regard to ending a contract by performance, agreement, or breach?

Accepted Answer

A)  A contract can be ended by breach only if there was a breach of condition, not a breach of warranty. 
B)  A person has not legally tendered performance if he pays a $500 debt in 25-cent coins. 
C)  If a person properly tenders performance of a service that is rejected by the other party, he is not required to try again. 
D)  A contract ends by agreement when the parties include in the contract a "condition subsequent," i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place. 
E)  If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off. 
A)  A contract can be ended by breach only if there was a breach of condition, not a breach of warranty. 
B)  A person has not legally tendered performance if he pays a $500 debt in 25-cent coins. 
C)  If a person properly tenders performance of a service that is rejected by the other party, he is not required to try again. 
D)  A contract ends by agreement when the parties include in the contract a "condition subsequent," i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place. 
E)  If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off.

Question 11

Dubocovich had contracted to supply a health-food store with jars of melatonin, a hormone reported in the media as a miracle potion. After they contracted, but before delivery, the government banned the sale of melatonin so that it could be properly tested under government auspices. Dubocovich told the owner of the store, Mr. Wei, that he wouldn't be delivering the melatonin because of the government ban. The demand for the melatonin was high. Mr. Wei was very upset with Dubocovich for failing to honour his contractual obligations. Furthermore, he had given Dubocovich $5000 in advance, which Dubocovich needed and used to pay the freight costs in bringing the drug to his warehouse. Wei sued Dubocovich for breach of contract. Which of the following is correct with respect to the legal position of the parties?

Accepted Answer

A)  Wei will be successful in his breach of contract action. 
B)  This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen. 
C)  Wei will be able to get back his $5000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract. 
D)  When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party. 
E)  The contract is illegal and void. 
A)  Wei will be successful in his breach of contract action. 
B)  This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen. 
C)  Wei will be able to get back his $5000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract. 
D)  When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party. 
E)  The contract is illegal and void.

Question 12

A person who breaches a contract is responsible for all of the loss that flows from the breach, no matter how unforeseeable.

Accepted Answer

A) True 
 B)False

Question 13

A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.

Accepted Answer

A) True 
 B)False

Question 14

An injunction involves a court order to do something (to perform the contract), whereas specific performance usually involves an order to refrain from some offensive conduct.

Accepted Answer

A) True 
 B)False

Question 15

Ibolya entered into an employment contract with a Toronto advertising firm, VertaNet Ltd. The agreement included a non-competition clause that prevented her from participating in the advertising field in Toronto for five years after termination of her employment. In the event of a breach, the contract provided that Ibolya would have to pay VertaNet the sum of $500,000 as liquidated damages. Ibolya worked for VertaNet for a period of time, then took another job in Vancouver where she worked for four and half years. Six months before the expiry of the five-year period in her VertaNet contract, Ibolya returned to Toronto to take a part-time position at a small advertising firm. Although VertaNet did not suffer any damage, VertaNet sued Ibolya claiming $500,000. What is the likely outcome?

Accepted Answer

A)  The non-competition clause is likely a penalty and therefore unenforceable. 
B)  Although the amount claimed is unconscionable, the clause will be enforced as it is writing. 
C)  Non-competition clauses generally are void as not being in the public interest. 
D)  Liquidated damages clauses are illegal and therefore void. 
E)  Unless the $500,000 had been prepaid, Ibolya has no good defence. 
A)  The non-competition clause is likely a penalty and therefore unenforceable. 
B)  Although the amount claimed is unconscionable, the clause will be enforced as it is writing. 
C)  Non-competition clauses generally are void as not being in the public interest. 
D)  Liquidated damages clauses are illegal and therefore void. 
E)  Unless the $500,000 had been prepaid, Ibolya has no good defence.

Question 16

What is the legal position of the victim of an anticipatory breach?

Accepted Answer

The victim of such a breach has a choice

Question 17

Discuss exculpatory (exemption) clauses and how the courts treat them.

Accepted Answer

Here students should explain what an exc

Question 18

An injunction is designed to punish someone for breaching a contract.

Accepted Answer

A) True 
 B)False

Question 19

When an anticipatory breach has taken place (where a person, before performance is due, states that he will not perform the contract)

Accepted Answer

A)  the victim may sue immediately and not wait to see if the contract is performed or not. 
B)  the victim must wait to see if the contract is performed, but damages are calculated from the time of the refusal. 
C)  the victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
D)  such a statement made before performance is due has no effect on the contractual obligations of the parties. 
E)  the victim may not be able to recover damages that occur after the anticipatory breach. 
A)  the victim may sue immediately and not wait to see if the contract is performed or not. 
B)  the victim must wait to see if the contract is performed, but damages are calculated from the time of the refusal. 
C)  the victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
D)  such a statement made before performance is due has no effect on the contractual obligations of the parties. 
E)  the victim may not be able to recover damages that occur after the anticipatory breach.

Question 20

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

Accepted Answer

When goods or services are involved, the

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

Lack of financial ability, if proven, will establish frustration.

Specific performance involves a court order to do something (to perform the contract), whereas a(n) ________ usually involves an order to refrain from some offensive conduct.

Injunction is an example of an equitable remedy.

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

Which of the following is true with regard to ending a contract by agreement?

Damages are an example of an equitable remedy.

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

Victims of breach have a duty to mitigate damages, meaning they must do what they can to keep those damages as low as possible.

Which of the following is false with regard to ending a contract by performance, agreement, or breach?

A person who breaches a contract is responsible for all of the loss that flows from the breach, no matter how unforeseeable.

A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.

An injunction involves a court order to do something (to perform the contract), whereas specific performance usually involves an order to refrain from some offensive conduct.

What is the legal position of the victim of an anticipatory breach?

Discuss exculpatory (exemption) clauses and how the courts treat them.

An injunction is designed to punish someone for breaching a contract.

When an anticipatory breach has taken place (where a person, before performance is due, states that he will not perform the contract)

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

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

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

Lack of financial ability, if proven, will establish frustration.

Specific performance involves a court order to do something (to perform the contract), whereas a(n) ________ usually involves an order to refrain from some offensive conduct.

Injunction is an example of an equitable remedy.

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

Which of the following is true with regard to ending a contract by agreement?

Damages are an example of an equitable remedy.

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

Victims of breach have a duty to mitigate damages, meaning they must do what they can to keep those damages as low as possible.

Which of the following is false with regard to ending a contract by performance, agreement, or breach?

A person who breaches a contract is responsible for all of the loss that flows from the breach, no matter how unforeseeable.

A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.

An injunction involves a court order to do something (to perform the contract), whereas specific performance usually involves an order to refrain from some offensive conduct.

What is the legal position of the victim of an anticipatory breach?

Discuss exculpatory (exemption) clauses and how the courts treat them.

An injunction is designed to punish someone for breaching a contract.

When an anticipatory breach has taken place (where a person, before performance is due, states that he will not perform the contract)

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

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