Question 1

How can the judgment creditor extract money from the judgment debtor?

Accepted Answer

A) by obtaining a garnishee order against the creditor's wages 
B) by instructing a court-appointed councilor to set up a payment schedule,which,if not followed,can amount to contempt of court for the debtor 
C) by relying on the plaintiff's legal council,who is responsible for collecting the money awarded in the judgment 
D) by requesting the sheriff to levy execution against the assets of the debtor 
E) by having the court collect the money through its authorized collection agency 
A) by obtaining a garnishee order against the creditor's wages 
B) by instructing a court-appointed councilor to set up a payment schedule,which,if not followed,can amount to contempt of court for the debtor 
C) by relying on the plaintiff's legal council,who is responsible for collecting the money awarded in the judgment 
D) by requesting the sheriff to levy execution against the assets of the debtor 
E) by having the court collect the money through its authorized collection agency

Question 2

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 3

Nominal damages are

Accepted Answer

A) assessed with purely personal or passionate reasons. 
B) assessed where a party commits a tort within the context of a contract. 
C) awarded to serve as an acknowledgement to a breach of contract where no appreciable loss has been sustained by the promisee. 
D) used for allowing the case to go to a higher court. 
E) where damages are determined by local bylaws. 
A) assessed with purely personal or passionate reasons. 
B) assessed where a party commits a tort within the context of a contract. 
C) awarded to serve as an acknowledgement to a breach of contract where no appreciable loss has been sustained by the promisee. 
D) used for allowing the case to go to a higher court. 
E) where damages are determined by local bylaws.

Question 4

Farmer Gibson ordered an irrigation pump from Sinclair Farm Supply,where he has an open account.When they attempted to deliver,he refused to accept,claiming he could get a better deal elsewhere.Legally,Gibson could be charged for all damages that naturally flow from this breach.Assuming Sinclair made free deliveries and it had more pumps than customers,the damages would include

Accepted Answer

A) the damages associated with Gibson not being able to properly irrigate his land. 
B) only the expected profits on this item. 
C) transportation as well as a restocking charge. 
D) only two-way transportation to Gibson's farm. 
E) expected profits,delivery charge,and a restocking charge. 
A) the damages associated with Gibson not being able to properly irrigate his land. 
B) only the expected profits on this item. 
C) transportation as well as a restocking charge. 
D) only two-way transportation to Gibson's farm. 
E) expected profits,delivery charge,and a restocking charge.

Question 5

An injunction is available in a variety of circumstances,including where the contract does not contain a negative covenant.

Accepted Answer

A) True 
 B)False

Question 6

Describe why the doctrine of substantial performance is of practical importance.

Accepted Answer

The doctrine of substantial performance

Question 7

Between the time when a contract is formed and the date of performance,a promisee is entitled to

Accepted Answer

A) notice of any anticipatory breach. 
B) performance of the warranties. 
C) notice of any intention on the party of a party to breach the contract. 
D) notice of all conditions and warranties. 
E) a continuous expectation of performance. 
A) notice of any anticipatory breach. 
B) performance of the warranties. 
C) notice of any intention on the party of a party to breach the contract. 
D) notice of all conditions and warranties. 
E) a continuous expectation of performance.

Question 8

Speedy Courier Service has a phrase on their order form that reads,"We deliver on time or our delivery is free." In legal terminology,this is

Accepted Answer

A) an advertising gambit. 
B) liquidated damages. 
C) a promotional come-on. 
D) a self-imposed penalty clause. 
E) consequential damages. 
A) an advertising gambit. 
B) liquidated damages. 
C) a promotional come-on. 
D) a self-imposed penalty clause. 
E) consequential damages.

Question 9

Canadian common law jurisdictions take a narrower approach to good faith duty to perform.In 2014,the Supreme Court of Canada refused to recognize a general duty of good faith performance in all situations and instead declared "good faith performance" an organizational principle,not a freestanding rule.How does an organizational principle of good faith differ from a duty of good faith performance of all contracts?

Accepted Answer

The organizational principle of good fai

Question 10

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

Accepted Answer

Exemption clauses are clauses in contrac

Question 11

All of the following may bar someone from obtaining an equitable remedy EXCEPT

Accepted Answer

A) if to do so would affect an innocent purchaser. 
B) if the plaintiff is a minor and the contract couldn't be enforced against him or her. 
C) if the plaintiff her- or himself did not have "clean hands." 
D) if there were unreasonable delays in taking the other party to court. 
E) if no attempt was made by the defendant to mitigate damages. 
A) if to do so would affect an innocent purchaser. 
B) if the plaintiff is a minor and the contract couldn't be enforced against him or her. 
C) if the plaintiff her- or himself did not have "clean hands." 
D) if there were unreasonable delays in taking the other party to court. 
E) if no attempt was made by the defendant to mitigate damages.

Question 12

A condition is

Accepted Answer

A) a fundamental event that must be fulfilled before another can happen. 
B) a contractual obligation that must happen before another can take place. 
C) a term of a contract that must be fulfilled by the promisee. 
D) an essential term of a contract. 
E) a contractual event that must take place before another can happen. 
A) a fundamental event that must be fulfilled before another can happen. 
B) a contractual obligation that must happen before another can take place. 
C) a term of a contract that must be fulfilled by the promisee. 
D) an essential term of a contract. 
E) a contractual event that must take place before another can happen.

Question 13

When might a warranty in a contract be a good answer to a lawsuit for breach of contract?

Accepted Answer

Generally,where the parties ar

Question 14

Businesses employ the use of exemption clauses to protect themselves from liability for any number of reasons which can include any of the following EXCEPT

Accepted Answer

A) exemption clauses allocate the risks so parties know who should insure against what. 
B) exemption clauses allow suppliers to charge lower prices. 
C) even if sued,the exemption clause will usually offer a complete defence and the business can recover its legal costs from the unsuccessful litigant. 
D) the exemption clause can be used to insulate the business from losses caused by employees stealing from its customers by including a specific term that the business is never responsible. 
E) if the business is in the position of using a standard form contract it will have a distinct advantage over its customers given that it can design the clause in its favour. 
A) exemption clauses allocate the risks so parties know who should insure against what. 
B) exemption clauses allow suppliers to charge lower prices. 
C) even if sued,the exemption clause will usually offer a complete defence and the business can recover its legal costs from the unsuccessful litigant. 
D) the exemption clause can be used to insulate the business from losses caused by employees stealing from its customers by including a specific term that the business is never responsible. 
E) if the business is in the position of using a standard form contract it will have a distinct advantage over its customers given that it can design the clause in its favour.

Question 15

Liability in contract

Accepted Answer

A) acts as an incentive to commit a breach of contract. 
B) acts as an economic deterrent to committing a breach of contract. 
C) acts as a punishment for committing a breach of contract. 
D) acts as both an economic deterrent and a punishment for committing a breach of contract. 
E) all of the above 
A) acts as an incentive to commit a breach of contract. 
B) acts as an economic deterrent to committing a breach of contract. 
C) acts as a punishment for committing a breach of contract. 
D) acts as both an economic deterrent and a punishment for committing a breach of contract. 
E) all of the above

Question 16

There are three circumstances when a court will refuse to apply an exemption clause to protect the breaching party from liability.Which of the following is NOT one of these circumstances?

Accepted Answer

A) when the clause does not apply to the circumstances 
B) when there is a strong public policy reason against enforcement 
C) when the clause was unconscionable at the time of contracting 
D) when the parties were of equal bargaining power at the time of contracting 
A) when the clause does not apply to the circumstances 
B) when there is a strong public policy reason against enforcement 
C) when the clause was unconscionable at the time of contracting 
D) when the parties were of equal bargaining power at the time of contracting

Question 17

If one party breaches a condition of a contract,the other party will generally be entitled to repudiate the contract.

Accepted Answer

A) True 
 B)False

Question 18

What is the distinction between a minor breach and a major breach?

Accepted Answer

The breach of a non-essential term of a

Question 19

A breach of a minor term will not discharge a contract,but a major term that is broken in only a minor respect will discharge a contract.

Accepted Answer

A) True 
 B)False

Question 20

Where the parties to a contract agree in advance on an amount of damages to be paid in the event of a breach,in order for the damages to be effective

Accepted Answer

A) they can be any amount agreed on by the parties,who are presumed to know what they have contracted for. 
B) they must be reasonable in the context of the contract. 
C) they must be meant to penalize the party committing the breach. 
D) they must relate solely to the breach,without regard to penalty or reasonableness. 
E) none of the above 
A) they can be any amount agreed on by the parties,who are presumed to know what they have contracted for. 
B) they must be reasonable in the context of the contract. 
C) they must be meant to penalize the party committing the breach. 
D) they must relate solely to the breach,without regard to penalty or reasonableness. 
E) none of the above

Exam 13: Breach of Contract and Its Remedies

How can the judgment creditor extract money from the judgment debtor?

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

Nominal damages are

An injunction is available in a variety of circumstances,including where the contract does not contain a negative covenant.

Describe why the doctrine of substantial performance is of practical importance.

Between the time when a contract is formed and the date of performance,a promisee is entitled to

Speedy Courier Service has a phrase on their order form that reads,"We deliver on time or our delivery is free." In legal terminology,this is

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

All of the following may bar someone from obtaining an equitable remedy EXCEPT

A condition is

When might a warranty in a contract be a good answer to a lawsuit for breach of contract?

Businesses employ the use of exemption clauses to protect themselves from liability for any number of reasons which can include any of the following EXCEPT

Liability in contract

There are three circumstances when a court will refuse to apply an exemption clause to protect the breaching party from liability.Which of the following is NOT one of these circumstances?

If one party breaches a condition of a contract,the other party will generally be entitled to repudiate the contract.

What is the distinction between a minor breach and a major breach?

A breach of a minor term will not discharge a contract,but a major term that is broken in only a minor respect will discharge a contract.

Where the parties to a contract agree in advance on an amount of damages to be paid in the event of a breach,in order for the damages to be effective

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

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods and Consumer Contracts

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

International Business Transactions

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