Question 1

Generally speaking,to successfully seek an equitable remedy for breach of contract,a plaintiff must

Accepted Answer

A) come to court with "clean hands." 
B) be a party against whom the remedy would otherwise be awarded were he a defendant. 
C) have paid a substantial consideration for the defendant's promise. 
D) launch his lawsuit within a reasonable amount of time of the breach. 
E) all of the above 
A) come to court with "clean hands." 
B) be a party against whom the remedy would otherwise be awarded were he a defendant. 
C) have paid a substantial consideration for the defendant's promise. 
D) launch his lawsuit within a reasonable amount of time of the breach. 
E) all of the above

Question 2

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 3

In a contract where one party is obligated to perform by installments and the initial performance is partially defective,what dilemma does the innocent party face?

Accepted Answer

The innocent party is faced with the dif

Question 4

Jack's supplier fails to deliver the products Jack has ordered at the required time.Jack is expected to do what he can to reduce his losses.This is called mitigation of losses.

Accepted Answer

A) True 
 B)False

Question 5

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 6

B.C.Metal Works agreed to purchase steel rod from Vancouver Smelters Ltd.Delivery was to take place on April 1.On March 24,Vancouver Smelters advised Metal Works that the steel rod could not be delivered because of production problems.Metal Works accepted the anticipatory breach of Vancouver Smelters and reserved their right to sue for damages.On April 1,Metal Works commenced looking for an alternate supply of steel rod and located a supply in Seattle,Washington.The rods could not be delivered for seven days,causing Metal Works to shut down their operations for three days.Metal Works sued Vancouver Smelters for breach of contract.What legal obligation did Metal Works have,and what remedy would they be entitled to?

Accepted Answer

Once B.C.Metal Works accepted the breach

Question 7

Give an example of damages that flow naturally from the breach of a contract.

Accepted Answer

For example,a building contractor abando

Question 8

In an action to enforce a covenant in restraint of trade in an employment contract,the court may grant an injunction.

Accepted Answer

A) True 
 B)False

Question 9

Name two equitable remedies.Describe three ways in which a party will lose its right to claim an equitable remedy.

Accepted Answer

Both specific performance and injunction

Question 10

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

Question 11

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 12

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 13

It is contrary to public interest to allow an exemption clause to insulate an offending party for conduct approaching criminal or fraudulent behaviour.

Accepted Answer

A) True 
 B)False

Question 14

In a contract of sale,where the seller fails to deliver goods on time,the measure of damages will normally be

Accepted Answer

A) the loss or losses that is/are reasonably foreseeable by the seller at the time the contract was made. 
B) only the loss or losses that occur(s)at the time of the breach. 
C) the loss or losses that is/are reasonably foreseeable by the seller at the time of the breach. 
D) all losses,whether or not reasonably foreseeable by the seller. 
E) only the loss or losses that is/are reasonably foreseeable by the buyer at the time the contract was made. 
A) the loss or losses that is/are reasonably foreseeable by the seller at the time the contract was made. 
B) only the loss or losses that occur(s)at the time of the breach. 
C) the loss or losses that is/are reasonably foreseeable by the seller at the time of the breach. 
D) all losses,whether or not reasonably foreseeable by the seller. 
E) only the loss or losses that is/are reasonably foreseeable by the buyer at the time the contract was made.

Question 15

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

Accepted Answer

Quantum meruit exists when there is a re

Question 16

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 17

Exemption clauses are generally strictly construed against the party that is not seeking to rely on them.

Accepted Answer

A) True 
 B)False

Question 18

Buildco Limited enters into a contract that has an exemption clause.Buildco's employees,during the course of constructing the home of Jack,fail to exercise care,as a result of which the home is damaged and Buildco is liable to Jack.Will Buildco be able to rely on the exemption clause?

Accepted Answer

The courts generally frown on the use of

Question 19

The failure of an innocent party to take steps to reduce the loss arising from a breach of contract is of no consequence at all.

Accepted Answer

A) True 
 B)False

Question 20

A breach will discharge a contract if

Accepted Answer

A) the injured party elects to treat it as discharging the contract. 
B) the breach is of the whole contract or an essential part of the contract. 
C) the breaching party decides to abandon its obligations under the contract as a result of the breach. 
D) the breach causes injury to the innocent party. 
E) the innocent party suffers significant financial loss. 
A) the injured party elects to treat it as discharging the contract. 
B) the breach is of the whole contract or an essential part of the contract. 
C) the breaching party decides to abandon its obligations under the contract as a result of the breach. 
D) the breach causes injury to the innocent party. 
E) the innocent party suffers significant financial loss.

Exam 13: Breach of Contract and Its Remedies

Generally speaking,to successfully seek an equitable remedy for breach of contract,a plaintiff must

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

In a contract where one party is obligated to perform by installments and the initial performance is partially defective,what dilemma does the innocent party face?

Jack's supplier fails to deliver the products Jack has ordered at the required time.Jack is expected to do what he can to reduce his losses.This is called mitigation of losses.

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?

Give an example of damages that flow naturally from the breach of a contract.

In an action to enforce a covenant in restraint of trade in an employment contract,the court may grant an injunction.

Name two equitable remedies.Describe three ways in which a party will lose its right to claim an equitable remedy.

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

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

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

It is contrary to public interest to allow an exemption clause to insulate an offending party for conduct approaching criminal or fraudulent behaviour.

In a contract of sale,where the seller fails to deliver goods on time,the measure of damages will normally be

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

An award of damages

Exemption clauses are generally strictly construed against the party that is not seeking to rely on them.

Buildco Limited enters into a contract that has an exemption clause.Buildco's employees,during the course of constructing the home of Jack,fail to exercise care,as a result of which the home is damaged and Buildco is liable to Jack.Will Buildco be able to rely on the exemption clause?

The failure of an innocent party to take steps to reduce the loss arising from a breach of contract is of no consequence at all.

A breach will discharge a contract if

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

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

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