Question 1

Generally speaking,the parol evidence rule is hard and inflexible.

Accepted Answer

A) True 
 B)False  False

Question 2

The contra proferentem rule is used against the party who made the contract in favour of the party who did not.

Accepted Answer

A) True 
 B)False  True

Question 3

In choosing between conflicting testimony,a court will

Accepted Answer

A) refuse to accept either testimony because one person's word is as good as another's,and it will impose its own meaning. 
B) seek corroboration of one of the versions of a story from a third party,and if that is not possible,it will choose between the versions by basing its decision on the credibility of the parties. 
C) choose a version of the story that is in accordance with well-known legal principles. 
D) refuse to accept either testimony because one person's word is good as another's,and it will impose a meaning that is determined by a jury of ordinary persons. 
E) choose the version of the story that is in accordance with societal norms. 
A) refuse to accept either testimony because one person's word is as good as another's,and it will impose its own meaning. 
B) seek corroboration of one of the versions of a story from a third party,and if that is not possible,it will choose between the versions by basing its decision on the credibility of the parties. 
C) choose a version of the story that is in accordance with well-known legal principles. 
D) refuse to accept either testimony because one person's word is good as another's,and it will impose a meaning that is determined by a jury of ordinary persons. 
E) choose the version of the story that is in accordance with societal norms. B

Question 4

A and B enter into a lease whereby A is to lease a unit in a plaza from B to be used as a retail men's clothing store.When the lease is drawn up and signed,it simply says that A is leasing the unit as a store.A now takes the position that he can have any kind of store and decides to rent out videos and DVDs,just like the Video and DVD store already in the plaza.In this situation

Accepted Answer

A) the court will attempt to resolve the ambiguity for A and B. 
B) the court will look to the intention of A and B in entering into the lease. 
C) the court will permit evidence that A intended to use the store as a retail men's clothing store and that B leased the unit to A on this basis. 
D) the term store in the written lease is ambiguous. 
E) all of the above 
A) the court will attempt to resolve the ambiguity for A and B. 
B) the court will look to the intention of A and B in entering into the lease. 
C) the court will permit evidence that A intended to use the store as a retail men's clothing store and that B leased the unit to A on this basis. 
D) the term store in the written lease is ambiguous. 
E) all of the above

Question 5

Which of the following is TRUE about consumer protection statutes?

Accepted Answer

A) Provincial legislation is not as encompassing as federal legislation. 
B) The federal government believes there is the need to be a big brother upon which one can call. 
C) It covers businesses as well as consumers. 
D) It only addresses the buying and selling of goods. 
E) It is concerned with only one party to the contract,the purchaser. 
A) Provincial legislation is not as encompassing as federal legislation. 
B) The federal government believes there is the need to be a big brother upon which one can call. 
C) It covers businesses as well as consumers. 
D) It only addresses the buying and selling of goods. 
E) It is concerned with only one party to the contract,the purchaser.

Question 6

A court will sometimes recognize the existence of an implied term from discussions that the parties had prior to entering into the contract.

Accepted Answer

A) True 
 B)False

Question 7

Words used in a contract may have a special meaning in the particular business,trade or geographic location.Briefly describe how a court deals with evidence of special meaning or usage.

Accepted Answer

Evidence of a special usage is not neces

Question 8

A business contract includes a term saying that a manufacturer will use "smooth-grained sand" in a construction project "if this quality is available.The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials.This is an example of the court introducing an implied term based on

Accepted Answer

A) statutory requirements. 
B) previous dealings between the parties. 
C) business efficacy. 
D) principles of statutory interpretation. 
E) the nature of the trade. 
A) statutory requirements. 
B) previous dealings between the parties. 
C) business efficacy. 
D) principles of statutory interpretation. 
E) the nature of the trade.

Question 9

When a condition precedent is not satisfied,the contract ceases to exist.Explain.

Accepted Answer

A condition precedent is an event that t

Question 10

The best way to ensure that terms advantageous to a business are enforceable against a consumer is to use a detailed standard form contract that meets the requirements of consumer protection legislation.

Accepted Answer

A) True 
 B)False

Question 11

Is not implying terms in a contract contrary to the rule that the function of the court is not to write or rewrite the contract for the parties?

Accepted Answer

By implying terms in a contract,the cour

Question 12

Mercantile Limited,a corporation in Toronto,enters into an agreement with Jackson to advance $300 000 to Jackson for the purchase of farming equipment.Jackson agrees to give Mercantile Limited a mortgage over his home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Jackson's home of at least $350 000.The appraisal provision is known as

Accepted Answer

A) an implied term. 
B) a warranty. 
C) a condition term. 
D) a condition precedent. 
E) an appraisal warranty. 
A) an implied term. 
B) a warranty. 
C) a condition term. 
D) a condition precedent. 
E) an appraisal warranty.

Question 13

What is the difference between a promise of guarantee and a promise of indemnity?

Accepted Answer

A promise of guarantee is a promise give

Question 14

Regardless of the legal requirements,what are the practical advantages of a written record?

Accepted Answer

There are a significant number of advant

Question 15

To interpret the express provisions of a contract,a court will

Accepted Answer

A) examine the most widely held meaning of the words. 
B) begin with the ordinary meaning of the words and then will examine their meaning within the context of the words. 
C) examine the ordinary meaning of the words and then will determine the most widely held meaning of the words. 
D) begin with the ordinary meaning of the words and then will ask a jury to determine the societal meaning of the words. 
E) examine the meaning of the words within the context and then will examine the ordinary meaning of the words. 
A) examine the most widely held meaning of the words. 
B) begin with the ordinary meaning of the words and then will examine their meaning within the context of the words. 
C) examine the ordinary meaning of the words and then will determine the most widely held meaning of the words. 
D) begin with the ordinary meaning of the words and then will ask a jury to determine the societal meaning of the words. 
E) examine the meaning of the words within the context and then will examine the ordinary meaning of the words.

Question 16

A judge is in the best position to assess credibility.

Accepted Answer

A) True 
 B)False

Question 17

The parol evidence rule does not permit evidence of oral contracts entered into between the parties before they enter into a written agreement.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT one of the kinds of conduct that must be established by a party who seeks to enforce an agreement,under the Sale of Goods Act,that is not in writing?

Accepted Answer

A) the provision of consideration 
B) acceptance by the buyer 
C) actual receipt of the goods by the buyer 
D) part payment tendered by the buyer and accepted by the seller 
E) something by way of earnest given by the buyer to the seller 
A) the provision of consideration 
B) acceptance by the buyer 
C) actual receipt of the goods by the buyer 
D) part payment tendered by the buyer and accepted by the seller 
E) something by way of earnest given by the buyer to the seller

Question 19

It has often been said that by defeating the reasonable expectation of the parties,the Statute of Frauds promotes

Accepted Answer

A) certainty and predictability. 
B) more frauds than it prevents. 
C) guarantees and indemnities. 
D) good faith bargaining. 
E) binding contractual relations. 
A) certainty and predictability. 
B) more frauds than it prevents. 
C) guarantees and indemnities. 
D) good faith bargaining. 
E) binding contractual relations.

Question 20

When a contract is oral,the first task of a court is to determine what the parties agreed to.

Accepted Answer

A) True 
 B)False

Exam 10: Writing and Interpretation

Generally speaking,the parol evidence rule is hard and inflexible.

The contra proferentem rule is used against the party who made the contract in favour of the party who did not.

In choosing between conflicting testimony,a court will

Which of the following is TRUE about consumer protection statutes?

A court will sometimes recognize the existence of an implied term from discussions that the parties had prior to entering into the contract.

Words used in a contract may have a special meaning in the particular business,trade or geographic location.Briefly describe how a court deals with evidence of special meaning or usage.

When a condition precedent is not satisfied,the contract ceases to exist.Explain.

The best way to ensure that terms advantageous to a business are enforceable against a consumer is to use a detailed standard form contract that meets the requirements of consumer protection legislation.

Is not implying terms in a contract contrary to the rule that the function of the court is not to write or rewrite the contract for the parties?

What is the difference between a promise of guarantee and a promise of indemnity?

Regardless of the legal requirements,what are the practical advantages of a written record?

To interpret the express provisions of a contract,a court will

A judge is in the best position to assess credibility.

The parol evidence rule does not permit evidence of oral contracts entered into between the parties before they enter into a written agreement.

Which of the following is NOT one of the kinds of conduct that must be established by a party who seeks to enforce an agreement,under the Sale of Goods Act,that is not in writing?

It has often been said that by defeating the reasonable expectation of the parties,the Statute of Frauds promotes

When a contract is oral,the first task of a court is to determine what the parties agreed to.

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

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

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

Electronic Commerce

Privacy

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