Exam 9: The End of the Contractual Relationship

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

Rahilly entered into a contract with Khan, whereby Rahilly agreed to paint a portrait of Khan's wife to be completed by her 30th birthday, six months from the time of this agreement. Three months before the portrait was to be completed, Rahilly told Khan that he would not be doing the portrait because he had accepted a job in Boston and was leaving immediately. Which of the following is false with regard to the rights of the parties in this situation?

Explain how the principle of remoteness affects the availability of damages in a breach of contract action.

Pat O'Grady owes Robinson $5000 in cash, but resents Robinson talking about O'Grady's debt among mutual acquaintances. O'Grady wants to know which of the following tactics would be legal performance.

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

For a contract to be ended by agreement, there must be consideration as well as agreement on both sides.

Which one of the following does not terminate a contract?

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

In rare circumstances, the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

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

Joe owed Sam $5000. After the money was due, he approached Sam and told him that he couldn't pay the money, but if Sam was willing to take $3000 that day in full satisfaction of the debt, he could come up with that money. Sam agreed to take the money and, in fact, took the money. Once he had it in his possession, he then turned around and sued Joe for the other $2000. Explain the likely outcome.

Jones entered into a contract to purchase a 1957 Edsel automobile from Smith for $2000. Unknown to Smith, Jones had an opportunity to resell that car for $5000 to Brown, who wanted to use it as a prop in a movie being shot in town. Before the car was delivered and payment made, it was destroyed by fire when one of Smith's employees carelessly spilled a can of gasoline in the garage where the car was kept. If the court found that the normal market value for such a vehicle was only $3000, which of the following statements is correct with respect to the appropriate remedy that should be awarded by the court for such a breach of contract?

Where one party refuses to perform his contractual obligations, what is the risk that the second party runs if he continues to press the first party to perform?

What is a force majeure clause?

Dagney was an author of a popular series of children's books. She signed an agreement with her publisher, in which she agreed to have a new book in the series written by October 15th. As noted in the contract, the timing was critical to ensuring the books would be on the shelves before Christmas and in order to coincide with a massive promotion the publisher had been planning. Dagney had a terrible case of writer's block. By October 3rd, she realized that there was no way that she would have the book finished by the deadline. She emailed her publisher, admitting that she would not have the book finished in time. What are the publisher's options?

The purpose of damages in contract law is to put the victim in the position he would have been in had the contract been properly performed.

When a person informs you before performance is due that he is not going to perform the contract, you don't have to wait to see if he does perform. You can make other arrangements and sue right away.

On the February 1, Smyth contracted to buy Dupont's van. They had agreed that Smyth would pay the price of $7000 on March 1 and take delivery and the risk on that date. Smyth then contracted to sell the van to Smithers on March 5 for $7600. On February 22, Dupont called Smyth and said he wasn't going to sell because he had decided to keep the van. On these facts, which of the following is false?

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300 that was displayed in the showroom at Joe's Fine Cars. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?

In which of the following is the contract not ended by agreement?