Exam 13: Breach of Contract and Its Remedies

A promissor is entitled to enforce a contract when it has performed to the best of its ability even though its performance does not comply in a major way with the requirements of a contract.

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.

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

The fact that a party enters into a contract with knowledge of special liability if it fails to perform

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?

Which of the following is NOT an equitable remedy?

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

An injured party may have several remedies available for breach of contract including but not limited to any of the following EXCEPT

Peevyhouse v.Garland Coal & Mining Company is a decision of a United States court.Given the decision in this case,and applying the rule of stare decisis as it pertains to decisions of Canadian courts,just how valuable is the decision in this case,and should it be adopted in Canada?

Rachel had been looking forward to her two weeks of vacation in Paris,France,with a Never Late Inc.tour group.The day before the tour was to leave Toronto,Rachel was told that the entire tour had to be cancelled because of a "mix-up in hotel accommodations." She was immediately given a full refund of her money.What sort of additional damages is Rachel entitled to?

Construction of the shopping centre was to be completed by October 15 (late penalties were included in the contract)and tenants such as FabricLand would move in by November 1.However,the contractor for the shopping centre was 43 days late in completing and now FabricLand is suing the shopping centre owner for ________ damages,and the shopping centre owner is suing the contractor for ________ damages.

An injured party cannot elect to treat a breach as discharging him or her from its obligations under a contract unless

Troy Feldmon agreed to purchase a house from Jenny King for $60 000.Jenny King had previously agreed to sell the house to another individual,but that transaction had not been completed due to the purchaser's default.Jenny was very concerned that steps be taken to ensure Troy was serious about completing the purchase,so she demanded a deposit of $20 000 and that the contract state "in the event that the purchaser does not complete the transaction the entire deposit would be forfeited as liquidated damages." As it happened,Troy was unable to complete the purchase due to an unexpected financial setback.Jenny King then declared the deposit forfeited.Will Troy be able to recover all or part of his deposit?

A liquidated damages clause will not always be effective.Explain.

A party to a contract may break the contract in various ways.Explain.

Even if the wording of an exemption clause applies to a situation that has occurred and the clause is not determined to be unconscionable at the time the contract was formed,a court may still refuse to enforce it if the injured party can

Jack has a contract to deliver goods to Jim on June 2.On the morning of June 2,Jack tells Jim that he will not be able to deliver the goods as promised.This is

Where a person has a contractual obligation,he or she has to perform the whole obligation before being entitled to enforce the contract.He or she cannot perform part of the obligation and then seek to enforce the contract.

Michael's Shop has a standard from contract that includes an exemption clause.Michael enters into an agreement with Jill.Jill signs the agreement without reading it because she says she trusts Michael.When Michael fails to perform his part of the agreement,Jill tries to sue.The court,in considering the effect of the exemption clause,will most likely

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.