Question 1

When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?

Accepted Answer

That party is bound by the cho

Question 2

Failure to make an installment payment will often trigger an acceleration clause, which makes the entire outstanding debt due and payable immediately.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true with regard to tender of performance?

Accepted Answer

A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract but the buyer refuses delivery, the seller will have to make another attempt to deliver before he can sue for breach of contract. 
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
C)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
D)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
E)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline. 
A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract but the buyer refuses delivery, the seller will have to make another attempt to deliver before he can sue for breach of contract. 
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
C)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
D)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
E)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline.

Question 4

"In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of this statement.

Accepted Answer

The statement is inaccurate. A warranty

Question 5

Explain what restrictions are put on the effect of exemption clauses (sometimes referred to as exclusion or exculpatory clauses) in a contract.

Accepted Answer

Such clauses are strictly interpreted ag

Question 6

In all but one of the following situations, the contract is frustrated. Identify the exception.

Accepted Answer

A)  Jack contracts with Bill to build a barn on his one-acre lot, but before the permit is obtained, a new law prohibits barns on lots smaller than three acres. 
B)  Rudolph is due to appear in a local variety theatre that has just been destroyed in a fire of unknown origin. 
C)  Frank has contracted to ride Emperor, a prize horse, in the Canada Day races on July 1, but on June 28 the horse breaks a leg and has to be destroyed. 
D)  Jerry, a doctor, is due to perform a heart transplant operation on Mary, and the night before the surgery his arthritis becomes so painful that he cannot hold a scalpel. 
E)  Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down. 
A)  Jack contracts with Bill to build a barn on his one-acre lot, but before the permit is obtained, a new law prohibits barns on lots smaller than three acres. 
B)  Rudolph is due to appear in a local variety theatre that has just been destroyed in a fire of unknown origin. 
C)  Frank has contracted to ride Emperor, a prize horse, in the Canada Day races on July 1, but on June 28 the horse breaks a leg and has to be destroyed. 
D)  Jerry, a doctor, is due to perform a heart transplant operation on Mary, and the night before the surgery his arthritis becomes so painful that he cannot hold a scalpel. 
E)  Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down.

Question 7

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

Accepted Answer

A)  Lowe contracted to purchase a business from Lerner, but the interest rates jumped so quickly that, even before closing, he realized he would lose money, so he told Lerner he couldn't go ahead with it. 
B)  Thornburn agreed to buy Patterson's tulip crop, but unknown to both of them, at the time of the contract the crop had been destroyed by frost. 
C)  Lee Ltd. agrees to haul lumber for Len Lumberjack, but a few days before the delivery date the company's best truck, the one they wanted to use, broke down. 
D)  N. Yung contracts to give a performance at Etobicoke stadium, but the performance was cancelled because Yung was poisoned by contaminated food at a local restaurant. 
E)  Mellowcream Ltd. contracted to deliver 40 dozen donuts to Pat's Place, but called Pat and told her it couldn't deliver because another customer needed another 40 dozen for an unexpected event. 
A)  Lowe contracted to purchase a business from Lerner, but the interest rates jumped so quickly that, even before closing, he realized he would lose money, so he told Lerner he couldn't go ahead with it. 
B)  Thornburn agreed to buy Patterson's tulip crop, but unknown to both of them, at the time of the contract the crop had been destroyed by frost. 
C)  Lee Ltd. agrees to haul lumber for Len Lumberjack, but a few days before the delivery date the company's best truck, the one they wanted to use, broke down. 
D)  N. Yung contracts to give a performance at Etobicoke stadium, but the performance was cancelled because Yung was poisoned by contaminated food at a local restaurant. 
E)  Mellowcream Ltd. contracted to deliver 40 dozen donuts to Pat's Place, but called Pat and told her it couldn't deliver because another customer needed another 40 dozen for an unexpected event.

Question 8

Where a developer signs agreements to buy several adjacent properties, and one property owner refuses to go through with the deal, it would be appropriate to obtain a court order for

Accepted Answer

A)  an equitable remedy. 
B)  specific performance. 
C)  an injunction. 
D)  quantum meruit. 
E)  damages 
A)  an equitable remedy. 
B)  specific performance. 
C)  an injunction. 
D)  quantum meruit. 
E)  damages

Question 9

All rules of contract formation apply when parties agree to discharge a contract.

Accepted Answer

A) True 
 B)False

Question 10

Distinguish between a condition precedent and a condition subsequent.

Accepted Answer

A condition subsequent involves the term

Question 11

If neighbours have a contract agreeing not to erect a building that blocks the other's view, which remedy might the court impose if that agreement is breached?

Accepted Answer

A)  Accounting 
B)  Quantum meruit 
C)  Mandatory injunction 
D)  Laches 
E)  Punitive damages 
A)  Accounting 
B)  Quantum meruit 
C)  Mandatory injunction 
D)  Laches 
E)  Punitive damages

Question 12

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

Accepted Answer

A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract. 
C)  A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach. 
D)  Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of a non-essential term (e.g., a warranty). 
E)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract. 
A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract. 
C)  A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach. 
D)  Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of a non-essential term (e.g., a warranty). 
E)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.

Question 13

Mikael recently started a home-based business selling custom fishing lures. He decided that he could make a lot more money selling his homemade lures on the Internet. Mikael is not the least bit technologically-inclined, but he knows that his next-door neighbour, Perm, does web design on the side. He decides to hire her to create a website for his new venture. Perm has him sign an agreement that includes an exemption clause that limits her liability in cases of negligence. In the course of designing the website, Perm becomes annoyed at Mikael because his dog keeps digging up her rose bushes. Rather than confront Mikael directly, Perm deliberately puts the wrong pricing information on Mikael's website to get him back. If Mikael suffers damages as a result and wants to sue Perm, what would the likely result be?

Accepted Answer

A)  The exemption clause would protect Perm because of the principle of "freedom to contract." 
B)  The exemption clause would be severed as being an illegal restraint of trade. 
C)  Perm's actions were outside the scope of the contract, so Mikael would have no claim in law. 
D)  Perm only did freelance web design; as a non-professional she would not face liability. 
E)  Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause. 
A)  The exemption clause would protect Perm because of the principle of "freedom to contract." 
B)  The exemption clause would be severed as being an illegal restraint of trade. 
C)  Perm's actions were outside the scope of the contract, so Mikael would have no claim in law. 
D)  Perm only did freelance web design; as a non-professional she would not face liability. 
E)  Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause.

Question 14

An agreement to end a contract, with extra consideration to be supplied by the party benefiting from the discharge, is known as ________.

Accepted Answer

accord and

Question 15

Gill, a wholesale fish seller, agreed to provide Blanchet's Restaurant with 1000 pounds of fresh salmon per week throughout the months of July, August, and September. Things went as planned for July and August. However, Gill was unable to meet the requirements of the contract for the first two weeks of September because his boats simply did not catch that much, although other companies did better and other fish was available for Gill to purchase, but at a higher price than what Blanchet was paying him. Rather than sell at a loss, Gill simply did not supply during the two-week period. At the end of that period, the Federal Fisheries Department shut down the fishery altogether because of the depletion of fish. After that, no more fresh salmon was available at all. Blanchet sued Gill for breach of contract with respect to his failure to deliver any fresh salmon in September. Which one of the following statements accurately sets out the legal situation here?

Accepted Answer

A)  Gill was under a strict obligation to supply the fish and no excuses for failure are allowed. 
B)  The contract was frustrated for the whole month of September by Gill's inability to obtain fish in the way that he intended, and thus he is not liable at all. 
C)  By not suing Gill as soon as he failed to deliver in the first two weeks of September, Blanchet lost the right to complain, and then the subsequent governmental closure excused his failure to deliver any fish in September. 
D)  Gill is liable for breach of contract with respect to the first two weeks of September, but the second two weeks' failure was caused by frustration for which he was not responsible. 
E)  The doctrine of frustration does not apply here because this is a sale-of-goods situation. 
A)  Gill was under a strict obligation to supply the fish and no excuses for failure are allowed. 
B)  The contract was frustrated for the whole month of September by Gill's inability to obtain fish in the way that he intended, and thus he is not liable at all. 
C)  By not suing Gill as soon as he failed to deliver in the first two weeks of September, Blanchet lost the right to complain, and then the subsequent governmental closure excused his failure to deliver any fish in September. 
D)  Gill is liable for breach of contract with respect to the first two weeks of September, but the second two weeks' failure was caused by frustration for which he was not responsible. 
E)  The doctrine of frustration does not apply here because this is a sale-of-goods situation.

Question 16

Distinguish between a down payment and a deposit.

Accepted Answer

A down payment is merely the first payme

Question 17

When one party is responsible for an act that frustrates a contract, it is treated as a breach.

Accepted Answer

A) True 
 B)False

Question 18

Where a contract is discharged or modified by a unilateral discharge, explain the problem that arises and its solution.

Accepted Answer

A unilateral discharge involves one pers

Question 19

Sam agreed to manufacture and supply 25 specially adapted computers for Joe to use for simulated horse racing in his string of hotels throughout the province. Unfortunately, after Sam almost completed the computers, the province passed a law prohibiting the manufacture and sale of this kind of machine. Joe had paid a deposit of $5000, but Sam had incurred $30,000 of expenses in manufacturing these machines. The total purchase price agree upon between these parties was $50,000. Joe sued Sam for the return of his $5000 deposit. Sam, in turn, sued Joe for a contribution towards his loss. Discuss the legal position of the parties.

Accepted Answer

The effect will vary to some extent with

Question 20

Explain how a fundamental breach affects the application of an exemption clause.

Accepted Answer

A fundamental breach is a breach that's

When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?

Failure to make an installment payment will often trigger an acceleration clause, which makes the entire outstanding debt due and payable immediately.

Which of the following is true with regard to tender of performance?

"In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of this statement.

Explain what restrictions are put on the effect of exemption clauses (sometimes referred to as exclusion or exculpatory clauses) in a contract.

In all but one of the following situations, the contract is frustrated. Identify the exception.

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

Where a developer signs agreements to buy several adjacent properties, and one property owner refuses to go through with the deal, it would be appropriate to obtain a court order for

All rules of contract formation apply when parties agree to discharge a contract.

Distinguish between a condition precedent and a condition subsequent.

If neighbours have a contract agreeing not to erect a building that blocks the other's view, which remedy might the court impose if that agreement is breached?

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

An agreement to end a contract, with extra consideration to be supplied by the party benefiting from the discharge, is known as ________.

Distinguish between a down payment and a deposit.

When one party is responsible for an act that frustrates a contract, it is treated as a breach.

Where a contract is discharged or modified by a unilateral discharge, explain the problem that arises and its solution.

Explain how a fundamental breach affects the application of an exemption clause.

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

When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?

Failure to make an installment payment will often trigger an acceleration clause, which makes the entire outstanding debt due and payable immediately.

Which of the following is true with regard to tender of performance?

"In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of this statement.

Explain what restrictions are put on the effect of exemption clauses (sometimes referred to as exclusion or exculpatory clauses) in a contract.

In all but one of the following situations, the contract is frustrated. Identify the exception.

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

Where a developer signs agreements to buy several adjacent properties, and one property owner refuses to go through with the deal, it would be appropriate to obtain a court order for

All rules of contract formation apply when parties agree to discharge a contract.

Distinguish between a condition precedent and a condition subsequent.

If neighbours have a contract agreeing not to erect a building that blocks the other's view, which remedy might the court impose if that agreement is breached?

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

An agreement to end a contract, with extra consideration to be supplied by the party benefiting from the discharge, is known as ________.

Distinguish between a down payment and a deposit.

When one party is responsible for an act that frustrates a contract, it is treated as a breach.

Where a contract is discharged or modified by a unilateral discharge, explain the problem that arises and its solution.

Explain how a fundamental breach affects the application of an exemption clause.

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