Question 1

Tender of performance means to perform an obligation under a contract.

Accepted Answer

A) True 
 B)False  False

Question 2

A unilateral contract is discharged by performance when

Accepted Answer

A) performance is genuinely attempted by both parties even if one party's performance is incomplete. 
B) a term of the contract specifies an event that must occur before the contract will proceed and that event does not occur. 
C) both parties attempt tender of performance. 
D) both parties perform all their obligations under the contract. 
E) an act of God occurs after the contract is entered into. 
A) performance is genuinely attempted by both parties even if one party's performance is incomplete. 
B) a term of the contract specifies an event that must occur before the contract will proceed and that event does not occur. 
C) both parties attempt tender of performance. 
D) both parties perform all their obligations under the contract. 
E) an act of God occurs after the contract is entered into. D

Question 3

When there is a contract for sale of goods,destruction of the source of the goods will frustrate the contract.

Accepted Answer

A) True 
 B)False  False

Question 4

In December,a California importer contracted with a Guatemala exporter for a plane load of roses to be shipped to Los Angles from Guatemala City the first week in February.Because of a regional hail storm in January,the exporter's usual sources of supply dried up to the extent that he could not obtain sufficient quantities of quality roses in Guatemala,so arranged for a shipment from the Cameron Highlands in Malaysia.When the shipment arrived in Los Angles,the importer refused it-based on the fact the roses didn't come from Guatemala.Give the legal arguments of each party.

Accepted Answer

The exporter would claim frustration as

Question 5

A and B enter into a contract whereby A agrees to supply B with 10 000 tins of tuna at the rate of 1000 tins per month from his tuna factory in Bayport,Nova Scotia,and B agrees to pay A $2 per tin.A supplies 1000 tins of tuna,but before he can collect,his factory is destroyed by fire.If the contract is discharged by frustration,which of the following statements is correct?

Accepted Answer

A) A must obtain the tuna from another source to satisfy the contract. 
B) B will have to pay A the sum of $2000 because there was no deposit. 
C) Only future obligations are discharged,and B must pay A the sum of $2000. 
D) All obligations under the contract are discharged,A and B's obligations are both discharged,and B does not have to pay A the sum of $2000. 
E) B will not have to pay A the sum of $2000 because there is no longer a contract. 
A) A must obtain the tuna from another source to satisfy the contract. 
B) B will have to pay A the sum of $2000 because there was no deposit. 
C) Only future obligations are discharged,and B must pay A the sum of $2000. 
D) All obligations under the contract are discharged,A and B's obligations are both discharged,and B does not have to pay A the sum of $2000. 
E) B will not have to pay A the sum of $2000 because there is no longer a contract.

Question 6

Bankruptcy does not discharge a bankrupt from all contractual obligations.

Accepted Answer

A) True 
 B)False

Question 7

The general rule for the discharge of a contract through frustration is as follows:

Accepted Answer

A) A party will be able to use self-induced frustration successfully. 
B) The frustrating event must defeat the common intention of both parties. 
C) Failure to perform is often excused by a wide variety of circumstances where the offending party is not at fault. 
D) The Frustration Contracts Act is applicable in cases where the Sale of Goods Act applies. 
E) It is only effective if performance becomes impossible or purposeless before the agreement was made. 
A) A party will be able to use self-induced frustration successfully. 
B) The frustrating event must defeat the common intention of both parties. 
C) Failure to perform is often excused by a wide variety of circumstances where the offending party is not at fault. 
D) The Frustration Contracts Act is applicable in cases where the Sale of Goods Act applies. 
E) It is only effective if performance becomes impossible or purposeless before the agreement was made.

Question 8

A enters into a contract with B under which A will sell to B 1000 barrels of fish for $8000.00.The contract provides that the risk passes to the buyer on delivery of the shipping documents.B pays a deposit of $1200.00 and A delivers five barrels of fish to B.Five days later A's warehouse is destroyed by an explosion caused by faulty repairs to a gas pipe.Under the modern Frustrated Contracts Acts,

Accepted Answer

A) A must still complete the contract because it has not been frustrated. 
B) B would get back his deposit less the value of the five barrels of fish delivered to him. 
C) B would get back his full deposit. 
D) all of the above 
E) none of the above 
A) A must still complete the contract because it has not been frustrated. 
B) B would get back his deposit less the value of the five barrels of fish delivered to him. 
C) B would get back his full deposit. 
D) all of the above 
E) none of the above

Question 9

Four partners own the used car dealership Square Deal Ltd.The company needed more working capital,so the partners went to the bank officer for a loan.The bank officer stipulated that she would approve the loan application if each of the owners signed a personal guarantee on the loan.This was agreed to by the four,but when it came time for signing,one of the partners was on an extended trip to Asia and couldn't be reached.The other three signed the document.Based on the three guarantees,the bank decided to go ahead with the loan to Square Deal Ltd.Are the guarantees enforceable against the three partners?

Accepted Answer

A) Yes,they are,since the bank extended the loan without objection from the partners. 
B) No,they are not,because the partner in Asia had the "deep pockets." 
C) Yes,they are,since there was good consideration given. 
D) No,they are not,since the condition precedent was never met. 
E) No,they are not,because there was a definite lack of consideration. 
A) Yes,they are,since the bank extended the loan without objection from the partners. 
B) No,they are not,because the partner in Asia had the "deep pockets." 
C) Yes,they are,since there was good consideration given. 
D) No,they are not,since the condition precedent was never met. 
E) No,they are not,because there was a definite lack of consideration.

Question 10

A sells goods to B for $5000.00 and no deposit is paid.Before the balance of the goods is delivered,the goods are destroyed.In this case,at common law,explain whether the seller will get anything for the value of the goods delivered.

Accepted Answer

At common law,the seller will

Question 11

Explain the effect of a condition subsequent.

Accepted Answer

Where a contract contains a co

Question 12

A agrees in writing to buy B's property for $20 000.00.The agreement states that A shall have five days from the date of the agreement to find mortgage financing.A is unable to find mortgage financing in five days and notifies B.In this case,

Accepted Answer

A) the contract has been discharged by operation of a condition subsequent. 
B) the contract has been discharged by waiver. 
C) the contract has not been discharged. 
D) the contract has been discharged by operation of a condition precedent. 
E) the contract has been discharged by novation. 
A) the contract has been discharged by operation of a condition subsequent. 
B) the contract has been discharged by waiver. 
C) the contract has not been discharged. 
D) the contract has been discharged by operation of a condition precedent. 
E) the contract has been discharged by novation.

Question 13

What is the effect of frustration on a contract? What,at common law,happens to a deposit paid prior to a contract being frustrated?

Accepted Answer

The doctrine of frustration discharges t

Question 14

Charles and his family live in Halifax.He was offered a good accounting position at Johnstone & Custer Ltd.in Vancouver.He agreed to take the job if the company could find his family suitable housing in the vicinity of the company.After two months,and having been presented with 17 different "suitable" houses,Charles declared that the condition to the employment contract had not been met.Does the firm Johnstone & Custer have any legal claim on the employment contract?

Accepted Answer

This is a condition precedent where Char

Question 15

Where the required elements for frustration in the Sale of Goods Act are present,the Frustrated Contracts Act will not apply.

Accepted Answer

A) True 
 B)False

Question 16

Park-Lot Maintenance Corp.entered into a three-year contract with Beliis Fair Mall for snow removal.The contract was in writing,but it was agreed orally that the snow would need to be at least 10 centimetres deep before the contract was operative.Which is the applicable legal concept?

Accepted Answer

A) The parol evidence rule will not allow the oral stipulation to be enforced by the courts. 
B) The oral part is a condition precedent and therefore renders the contract void. 
C) The oral part is a condition subsequent and is effective for three years. 
D) The oral part is a condition precedent and therefore enforceable. 
E) The contract is in effect regardless of the oral stipulation. 
A) The parol evidence rule will not allow the oral stipulation to be enforced by the courts. 
B) The oral part is a condition precedent and therefore renders the contract void. 
C) The oral part is a condition subsequent and is effective for three years. 
D) The oral part is a condition precedent and therefore enforceable. 
E) The contract is in effect regardless of the oral stipulation.

Question 17

A truck slides off a mountain road in a snow storm.The contents,Nike shoes,are spread all over a ravine far below.Explain how the seller of the goods,who retained title,might use frustration in his defence.

Accepted Answer

Because of frustration,both parties are

Question 18

Accord and satisfaction is an agreement not to proceed with the performance of a contract already in existence.

Accepted Answer

A) True 
 B)False

Question 19

A contract that is discharged by performance is one in which the respective legal obligations of the parties have been fulfilled.

Accepted Answer

A) True 
 B)False

Question 20

A debtor who makes an unsuccessful but reasonable attempt to pay will be free from further liability on interest owing on the amount.

Accepted Answer

A) True 
 B)False

Exam 12: The Discharge of Contracts

Tender of performance means to perform an obligation under a contract.

A unilateral contract is discharged by performance when

When there is a contract for sale of goods,destruction of the source of the goods will frustrate the contract.

Bankruptcy does not discharge a bankrupt from all contractual obligations.

The general rule for the discharge of a contract through frustration is as follows:

A sells goods to B for $5000.00 and no deposit is paid.Before the balance of the goods is delivered,the goods are destroyed.In this case,at common law,explain whether the seller will get anything for the value of the goods delivered.

Explain the effect of a condition subsequent.

A agrees in writing to buy B's property for $20 000.00.The agreement states that A shall have five days from the date of the agreement to find mortgage financing.A is unable to find mortgage financing in five days and notifies B.In this case,

What is the effect of frustration on a contract? What,at common law,happens to a deposit paid prior to a contract being frustrated?

Where the required elements for frustration in the Sale of Goods Act are present,the Frustrated Contracts Act will not apply.

Park-Lot Maintenance Corp.entered into a three-year contract with Beliis Fair Mall for snow removal.The contract was in writing,but it was agreed orally that the snow would need to be at least 10 centimetres deep before the contract was operative.Which is the applicable legal concept?

A truck slides off a mountain road in a snow storm.The contents,Nike shoes,are spread all over a ravine far below.Explain how the seller of the goods,who retained title,might use frustration in his defence.

Accord and satisfaction is an agreement not to proceed with the performance of a contract already in existence.

A contract that is discharged by performance is one in which the respective legal obligations of the parties have been fulfilled.

A debtor who makes an unsuccessful but reasonable attempt to pay will be free from further liability on interest owing on the amount.

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

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

Breach of Contract and Its Remedies

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