Question 1

Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him, on or before the payment due date.

Accepted Answer

For example, away from the workplace, ou

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 quantum of damages Jones can recover?

Accepted Answer

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

Question 3

Which of the following is one of the remedies generally available for a breach of contract?

Accepted Answer

A)  Novation 
B)  Anticipatory breach 
C)  Repudiation 
D)  Specific performance 
E)  Punitive damages 
A)  Novation 
B)  Anticipatory breach 
C)  Repudiation 
D)  Specific performance 
E)  Punitive damages

Question 4

Which one of the following is false with regard to exemption (exclusion) clauses?

Accepted Answer

A)  Even if there is an exemption clause in the contract, the court can hold that the exemption clause is of no effect if the breach is a "fundamental breach." 
B)  Where there is an exemption clause in a contract, the court will strictly construe that clause; i.e., the wording of the clause must cover the situation that occurred. 
C)  To be part of the contract, such clauses must be brought to the attention of the parties before or at the time of contract. 
D)  An effective exemption clause is a barrier blocking the party wronged from his or her remedy, e.g., from damages. 
E)  Such clauses are prohibited in any sale of goods contract. 
A)  Even if there is an exemption clause in the contract, the court can hold that the exemption clause is of no effect if the breach is a "fundamental breach." 
B)  Where there is an exemption clause in a contract, the court will strictly construe that clause; i.e., the wording of the clause must cover the situation that occurred. 
C)  To be part of the contract, such clauses must be brought to the attention of the parties before or at the time of contract. 
D)  An effective exemption clause is a barrier blocking the party wronged from his or her remedy, e.g., from damages. 
E)  Such clauses are prohibited in any sale of goods contract.

Question 5

The creation of a new contract through the substitution of a third party for one of the original parties to a contract, with consent by all, is known as ________.

Accepted Answer

The answer of The creation of a new contract through...

Question 6

A student bought an I-Pod Nano for the stated purpose of listening to his taped notes while he took his daily run. The contract he signed with the seller, Tape Talk Ltd., included a clause excusing the seller from liability for the breach of "any term of the contract, whether a breach of condition or warranty whether express, implied, statutory or otherwise." After only 30 days, the I-Pod failed to function at all. It was totally useless for the student's purpose, so he took it back to the seller. The seller refused to take it back and pointed out the exemption clause in the signed contract. On these facts, which of the following could be true?

Accepted Answer

A)  The student is out of luck because the contract with the exemption clause was in writing. 
B)  The student could get around the exemption clause by arguing insufficient notice. 
C)  The student could get around the exemption clause by the court's strict interpretation (construction) of the clause. 
D)  All exemption clauses are illegal, and therefore the student would not be bound by this one. 
E)  The student could be awarded damages if the exemption clause were found invalid by the court on the grounds that the clause could not be interpreted to mean it would forgive such a fundamental breach. 
A)  The student is out of luck because the contract with the exemption clause was in writing. 
B)  The student could get around the exemption clause by arguing insufficient notice. 
C)  The student could get around the exemption clause by the court's strict interpretation (construction) of the clause. 
D)  All exemption clauses are illegal, and therefore the student would not be bound by this one. 
E)  The student could be awarded damages if the exemption clause were found invalid by the court on the grounds that the clause could not be interpreted to mean it would forgive such a fundamental breach.

Question 7

Indicate three conditions under which a contract may come to an end on the basis of frustration.

Accepted Answer

1. Where the contract is rendered imposs

Question 8

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

Question 9

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 10

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 11

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

Accepted Answer

A fundamental breach is a breach that's

Question 12

What does it mean when a party has "tendered performance"?

Accepted Answer

A tender of performance is an

Question 13

Distinguish between a condition precedent and a condition subsequent.

Accepted Answer

A condition subsequent involves the term

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  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. 
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 can be ended unilaterally by one party. 
D)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation. 
E)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract. 
A)  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. 
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 can be ended unilaterally by one party. 
D)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation. 
E)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract.

Question 16

Joe owed Sam $5,000. 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 $3,000 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 for the other $2,000. Explain the likely outcome.

Accepted Answer

The outcome depends on the jurisdiction.

Question 17

Indicate three different types of equitable remedies and distinguish among them.

Accepted Answer

1. Specific performance. Here the court

Question 18

"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 19

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.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  In law, a certified cheque is the same as cash. 
B)  If a person attempts to perform services in accordance with the terms of the contract, and the buyer refuses those services, the person attempting to perform can sue the buyer with no further attempt to perform. 
C)  If a person owing money has tendered payment in a reasonable way, at a reasonable time, and it has been refused, he is free from any further obligation to pay. 
D)  If a warranty is breached, the victim has no further obligation to perform under the contract. 
E)  Legal tender consists of bills or coin in any amount. 
A)  In law, a certified cheque is the same as cash. 
B)  If a person attempts to perform services in accordance with the terms of the contract, and the buyer refuses those services, the person attempting to perform can sue the buyer with no further attempt to perform. 
C)  If a person owing money has tendered payment in a reasonable way, at a reasonable time, and it has been refused, he is free from any further obligation to pay. 
D)  If a warranty is breached, the victim has no further obligation to perform under the contract. 
E)  Legal tender consists of bills or coin in any amount.

Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him, on or before the payment due date.

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 quantum of damages Jones can recover?

Which of the following is one of the remedies generally available for a breach of contract?

Which one of the following is false with regard to exemption (exclusion) clauses?

The creation of a new contract through the substitution of a third party for one of the original parties to a contract, with consent by all, is known as ________.

Indicate three conditions under which a contract may come to an end on the basis of frustration.

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

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

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

What does it mean when a party has "tendered performance"?

Distinguish between a condition precedent and a condition subsequent.

Failure to make an instalment 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 ending a contract by agreement?

Indicate three different types of equitable remedies and distinguish among them.

"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.

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.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

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Exam 9: The End of the Contractual Relationship

Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him, on or before the payment due date.

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 quantum of damages Jones can recover?

Which of the following is one of the remedies generally available for a breach of contract?

Which one of the following is false with regard to exemption (exclusion) clauses?

The creation of a new contract through the substitution of a third party for one of the original parties to a contract, with consent by all, is known as ________.

Indicate three conditions under which a contract may come to an end on the basis of frustration.

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

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

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

What does it mean when a party has "tendered performance"?

Distinguish between a condition precedent and a condition subsequent.

Failure to make an instalment 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 ending a contract by agreement?

Indicate three different types of equitable remedies and distinguish among them.

"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.

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.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters