Question 1

Explain the circumstances under which a claim of quantum meruit would be successful.

Accepted Answer

Quantum meruit exists when there is a request for goods or services but there was no agreement as to price.The court will require payment of the market value of benefit conferred.This concept can be applied to a contractor who repudiates a contract because the other party is guilty of a fundamental breach and yet the contractor has made valuable benefits to the project.

Question 2

Jack has a contract to deliver goods to Jim on June 2.On May 31,Jack calls Jim and advises him that he cannot deliver the goods on June 2.This is

Accepted Answer

A) an anticipatory breach. 
B) an early breach. 
C) an implied repudiation. 
D) an early termination. 
E) a rescission. 
A) an anticipatory breach. 
B) an early breach. 
C) an implied repudiation. 
D) an early termination. 
E) a rescission. A

Question 3

Where a creditor serves an employer with an order that requires the employer to retain a portion of the debtor's wages each payday,the employer has been served with an execution order.

Accepted Answer

A) True 
 B)False  False

Question 4

An award of damages

Accepted Answer

A) seldom comes out of a case for breach. 
B) aims to place the injured party in the same position as if the contract had been completed. 
C) is an "equitable remedy" for breach. 
D) usually accompanies a rescission. 
E) is a tool used by the courts to act as a punishment to those who breach a contract. 
A) seldom comes out of a case for breach. 
B) aims to place the injured party in the same position as if the contract had been completed. 
C) is an "equitable remedy" for breach. 
D) usually accompanies a rescission. 
E) is a tool used by the courts to act as a punishment to those who breach a contract.

Question 5

Carlos,an antique dealer,contracted to buy an antique dining room set at a garage sale for $700.He made a down payment and agreed to return on the weekend to pick it up.Then Carlos contacted a former customer who he knew wanted such an item.This customer agreed to pay $850 for the set.However,when Carlos returned on the weekend to where the garage sale had been,he found that the dining room set had been sold to someone else for $900 and had already been hauled away.Carlos was given back his down payment cheque.Does Carlos have any other claim to damages?

Accepted Answer

A) Yes,he does,for mental anguish. 
B) No,he doesn't; there are no further damages. 
C) Yes,he does,for $150 of consequential damages. 
D) Yes,he does,for $200 of consequential damages. 
E) Yes,he does,for $200 of expectation damages. 
A) Yes,he does,for mental anguish. 
B) No,he doesn't; there are no further damages. 
C) Yes,he does,for $150 of consequential damages. 
D) Yes,he does,for $200 of consequential damages. 
E) Yes,he does,for $200 of expectation damages.

Question 6

On April 10,Mel entered into a contract to sell his house to Nan at a price of $300 000.Title was to transfer May 31.Nan paid Mel a deposit of $20 000.A clause in the contract between them said: "If the buyer does not complete as specified,the seller can elect to keep the deposit as liquidated damages." On April 30,Nan told Mel she could not complete the contract because she could not sell her own house.Mel immediately entered into a contract to sell his house to Paul for $320 000.Nan insists that Mel return her deposit because he has suffered no damages.Will a court order Mel to return her deposit?

Accepted Answer

The contract between Mel and Nan contain

Question 7

Danny agreed to sell a large painting to Mary for $5000.It has a sentimental value to Mary-being a painting of her house in 1938.Before delivery,Danny discovered the sentimental interest of Mary and refused to sell it at the agreed-upon price.Which of the following statements is correct?

Accepted Answer

A) Mary is entitled to damages of $5000. 
B) Mary could claim the remedy of specific performance because the painting is so special to her. 
C) Danny can demand compensation for the painting's full esthetic value. 
D) Mary is not entitled to an equitable remedy because the subject of the contract is not real property. 
E) Danny does not have to deliver the painting at the original price because of the doctrine of mistaken value. 
A) Mary is entitled to damages of $5000. 
B) Mary could claim the remedy of specific performance because the painting is so special to her. 
C) Danny can demand compensation for the painting's full esthetic value. 
D) Mary is not entitled to an equitable remedy because the subject of the contract is not real property. 
E) Danny does not have to deliver the painting at the original price because of the doctrine of mistaken value.

Question 8

Unconscionable terms in a contract can be unfair even if they are agreed to by parties of equal bargaining power.

Accepted Answer

A) True 
 B)False

Question 9

Use the fact situation in Q8 to answer the related question that follows. If the sign had been facing you as you drove into the parking lot but had read "The owners of this parking lot will not be responsible for any damage to your car," in a lawsuit by you for damage to the car and for the stolen contents,

Accepted Answer

A) the parking lot owners will be liable for both the damage to your car and the lost contents. 
B) the parking lot owners will not be liable because the damage and loss was beyond their control. 
C) the parking lot owners will be liable for the damage to your car,but not the lost contents. 
D) the words of the sign will be a good defence to your action because you saw it as you drove into the lot. 
E) the parking lot owners will be liable for the lost contents,but not the damage to your car. 
A) the parking lot owners will be liable for both the damage to your car and the lost contents. 
B) the parking lot owners will not be liable because the damage and loss was beyond their control. 
C) the parking lot owners will be liable for the damage to your car,but not the lost contents. 
D) the words of the sign will be a good defence to your action because you saw it as you drove into the lot. 
E) the parking lot owners will be liable for the lost contents,but not the damage to your car.

Question 10

General damages are

Accepted Answer

A) damages that cannot be precisely calculated in monetary terms. 
B) damages that are meant to punish the wrongdoer,whether calculable or not. 
C) damages that include both readily calculable damages and damages that cannot be precisely calculated. 
D) damages that can be readily calculated. 
E) all of the above 
A) damages that cannot be precisely calculated in monetary terms. 
B) damages that are meant to punish the wrongdoer,whether calculable or not. 
C) damages that include both readily calculable damages and damages that cannot be precisely calculated. 
D) damages that can be readily calculated. 
E) all of the above

Question 11

The expression that damages must flow naturally from the breach of a contract has been meant to refer to only those damages that actually flow from the breach.

Accepted Answer

A) True 
 B)False

Question 12

Onar Development stopped progress payments to its general contractor,Shape Construction.Upon the advice of their lawyer,Shape decided to sue for rescission of the contract rather than collect damages for breach.Shape will most likely

Accepted Answer

A) collect under quantum meruit. 
B) ask for specific performance. 
C) get expectation damages. 
D) file for bankruptcy. 
E) get an injunction. 
A) collect under quantum meruit. 
B) ask for specific performance. 
C) get expectation damages. 
D) file for bankruptcy. 
E) get an injunction.

Question 13

The remedy of rescission involves suspending the operation of a contract temporarily.

Accepted Answer

A) True 
 B)False

Question 14

Give an example of a business mitigating the effects of breach of contract by the other party.

Accepted Answer

For example,perishable goods that are no

Question 15

A willful or negligent act by the promissor that destroys its ability to fulfill its contractual promises amounts to a breach of contract.

Accepted Answer

A) True 
 B)False

Question 16

A party seeking an equitable remedy must come to court with "clean hands." Explain.

Accepted Answer

Equitable remedies are discretionary in

Question 17

Terms in a contract agreed to by parties of unequal bargaining power that give an unfair advantage to the powerful party over the weaker party are referred to as

Accepted Answer

A) material terms. 
B) warranties. 
C) unconscionable terms. 
D) conditions. 
E) standard terms. 
A) material terms. 
B) warranties. 
C) unconscionable terms. 
D) conditions. 
E) standard terms.

Question 18

Any ambiguity in an exemption clause must be interpreted against the _________ party because that party had every chance to make the ambiguity more clear.

Accepted Answer

A) remote 
B) third 
C) drawing 
D) assigning 
E) minor 
A) remote 
B) third 
C) drawing 
D) assigning 
E) minor

Question 19

A warranty is

Accepted Answer

A) a non-essential term of a contract. 
B) a guarantee of performance given by one party to another. 
C) a guarantee contained in a contract regarding the performance of an obligation. 
D) a non-essential term of a contract that guarantees the performance of an obligation. 
E) an essential term of a contract that guarantees the performance of an obligation. 
A) a non-essential term of a contract. 
B) a guarantee of performance given by one party to another. 
C) a guarantee contained in a contract regarding the performance of an obligation. 
D) a non-essential term of a contract that guarantees the performance of an obligation. 
E) an essential term of a contract that guarantees the performance of an obligation.

Question 20

In rare circumstances courts have awarded punitive damages if the behaviour of the breaching party is considered to be

Accepted Answer

A) malicious. 
B) in bad faith. 
C) high-handed. 
D) arbitrary. 
E) any of the above 
A) malicious. 
B) in bad faith. 
C) high-handed. 
D) arbitrary. 
E) any of the above

Exam 34: Breach of Contract and Its Remedies

Explain the circumstances under which a claim of quantum meruit would be successful.

Jack has a contract to deliver goods to Jim on June 2.On May 31,Jack calls Jim and advises him that he cannot deliver the goods on June 2.This is

Where a creditor serves an employer with an order that requires the employer to retain a portion of the debtor's wages each payday,the employer has been served with an execution order.

An award of damages

Danny agreed to sell a large painting to Mary for $5000.It has a sentimental value to Mary-being a painting of her house in 1938.Before delivery,Danny discovered the sentimental interest of Mary and refused to sell it at the agreed-upon price.Which of the following statements is correct?

Unconscionable terms in a contract can be unfair even if they are agreed to by parties of equal bargaining power.

General damages are

The expression that damages must flow naturally from the breach of a contract has been meant to refer to only those damages that actually flow from the breach.

Onar Development stopped progress payments to its general contractor,Shape Construction.Upon the advice of their lawyer,Shape decided to sue for rescission of the contract rather than collect damages for breach.Shape will most likely

The remedy of rescission involves suspending the operation of a contract temporarily.

Give an example of a business mitigating the effects of breach of contract by the other party.

A willful or negligent act by the promissor that destroys its ability to fulfill its contractual promises amounts to a breach of contract.

A party seeking an equitable remedy must come to court with "clean hands." Explain.

Terms in a contract agreed to by parties of unequal bargaining power that give an unfair advantage to the powerful party over the weaker party are referred to as

Any ambiguity in an exemption clause must be interpreted against the _________ party because that party had every chance to make the ambiguity more clear.

A warranty is

In rare circumstances courts have awarded punitive damages if the behaviour of the breaching party is considered to be

Law, society, and Business

The Machinery of Justice

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Privacy

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