Question 1

Explain the ways in which a party to a contract may break the contract.

Accepted Answer

A party to a contract may break it in three main ways, namely by expressly repudiating his or her liabilities; by acting in a ways that makes the promise impossible to perform; and by either failing to perform at all, or tendering actual performance that falls short of its promise.

Question 2

A breach of a minor term in a contract

Accepted Answer

A)  does not entitle an aggrieved party to damages. 
B)  does not entitle an aggrieved party to abandon obligations under a contract. 
C)  amounts to a frustration of the contract. 
D)  will enable an aggrieved party to elect to treat the breach as discharging the contract. 
E)  amounts to a termination of the contract. 
A)  does not entitle an aggrieved party to damages. 
B)  does not entitle an aggrieved party to abandon obligations under a contract. 
C)  amounts to a frustration of the contract. 
D)  will enable an aggrieved party to elect to treat the breach as discharging the contract. 
E)  amounts to a termination of the contract. B

Question 3

Exemption clauses are

Accepted Answer

A)  strictly construed by the courts against the party that seeks to rely on them. 
B)  not used in contracts for the sale of goods. 
C)  not considered by courts. 
D)  strictly construed by the courts against the parties for whom they are drawn. 
E)  not used in employer- employee contracts. 
A)  strictly construed by the courts against the party that seeks to rely on them. 
B)  not used in contracts for the sale of goods. 
C)  not considered by courts. 
D)  strictly construed by the courts against the parties for whom they are drawn. 
E)  not used in employer- employee contracts. A

Question 4

Buildco Limited enter 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 5

Which of the following is NOT true about how a breach may occur?

Accepted Answer

A)  Jack may breach a contract by failing to perform all his obligations. 
B)  Jack may breach a contract by tendering an actual performance that falls short of his promise. 
C)  Jack may breach a contract by expressly repudiating his liabilities. 
D)  Jack may breach the contract by acting in a manner that makes his promise impossible to perform. 
E)  Jack may breach a contract by calling James and advising him that he will be ten minutes late in arriving at the home of James to start painting the home. 
A)  Jack may breach a contract by failing to perform all his obligations. 
B)  Jack may breach a contract by tendering an actual performance that falls short of his promise. 
C)  Jack may breach a contract by expressly repudiating his liabilities. 
D)  Jack may breach the contract by acting in a manner that makes his promise impossible to perform. 
E)  Jack may breach a contract by calling James and advising him that he will be ten minutes late in arriving at the home of James to start painting the home.

Question 6

The problems created by a failure of performance, arise typically

Accepted Answer

A)  when a party is notified of the other's failure to perform. 
B)  as the parties enter into a collateral contract. 
C)  when the promisee is about to perform. 
D)  when the agreement is executed. 
E)  only when the time for performance arrives or during performance. 
A)  when a party is notified of the other's failure to perform. 
B)  as the parties enter into a collateral contract. 
C)  when the promisee is about to perform. 
D)  when the agreement is executed. 
E)  only when the time for performance arrives or during 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 intention on the party of a party to breach the contract. 
B)  notice of all conditions and warranties. 
C)  a continuous expectation of performance. 
D)  performance of the warranties. 
E)  notice of any anticipatory breach. 
A)  notice of any intention on the party of a party to breach the contract. 
B)  notice of all conditions and warranties. 
C)  a continuous expectation of performance. 
D)  performance of the warranties. 
E)  notice of any anticipatory breach.

Question 8

Where a contract contains an exemption clause, and a party in breach seeks to avail itself of the clause, the courts will most likely permit the party in breach to shelter under the clause.

Accepted Answer

A) True 
 B)False

Question 9

A party who signs a contract will not be bound by an exemption clause:

Accepted Answer

A)  that is not drawn to the party's attention 
B)  that is not under seal 
C)  that the party did not notice 
D)  that is surprising and onerous 
E)  when A and D apply 
A)  that is not drawn to the party's attention 
B)  that is not under seal 
C)  that the party did not notice 
D)  that is surprising and onerous 
E)  when A and D apply

Question 10

A party to a contract has a continuous expectation of performance. Explain.

Accepted Answer

The courts have held that a contract exi

Question 11

Where an exemption clause is so broad that it protects a wrongdoer from liability, the courts have usually declared the breach to be a fundamental breach.

Accepted Answer

A) True 
 B)False

Question 12

What is a fundamental breach, and how can it affect a contract?

Accepted Answer

It is a breach that goes to the core of

Question 13

The doctrine of substantial performance says that there will be rescission if each party does not substantially perform its obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

The doctrine of substantial performance

Question 15

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

Accepted Answer

A)  the breaching party suffers financial loss. 
B)  the innocent party suffers financial loss. 
C)  it is of the whole contract or an essential part of the contract. 
D)  the the breaching party elects to treat the breach as discharging him or her from contractual obligations. 
E)  the breach causes physical injury. 
A)  the breaching party suffers financial loss. 
B)  the innocent party suffers financial loss. 
C)  it is of the whole contract or an essential part of the contract. 
D)  the the breaching party elects to treat the breach as discharging him or her from contractual obligations. 
E)  the breach causes physical injury.

Question 16

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

Accepted Answer

A party to a contract may break it in th

Question 17

Where a court finds that a breach is a fundamental breach, an exemption clause will be treated as ineffective to excuse the breach.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

An exemption clause in a contract can protect a party from liability for:

Accepted Answer

A)  breach of contract 
B)  damages 
C)  negligence 
D)  deliberate acts of employees 
E)  all of the above 
A)  breach of contract 
B)  damages 
C)  negligence 
D)  deliberate acts of employees 
E)  all of the above

Question 20

A major breach amounting to a repudiation of a contract will only occur at the commencement of a contract and not later.

Accepted Answer

A) True 
 B)False

Exam 14: The Effect of Breach

Explain the ways in which a party to a contract may break the contract.

A breach of a minor term in a contract

Exemption clauses are

Buildco Limited enter 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?

Which of the following is NOT true about how a breach may occur?

The problems created by a failure of performance, arise typically

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

Where a contract contains an exemption clause, and a party in breach seeks to avail itself of the clause, the courts will most likely permit the party in breach to shelter under the clause.

A party who signs a contract will not be bound by an exemption clause:

A party to a contract has a continuous expectation of performance. Explain.

Where an exemption clause is so broad that it protects a wrongdoer from liability, the courts have usually declared the breach to be a fundamental breach.

What is a fundamental breach, and how can it affect a contract?

The doctrine of substantial performance says that there will be rescission if each party does not substantially perform its obligations under the contract.

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

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

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

Where a court finds that a breach is a fundamental breach, an exemption clause will be treated as ineffective to excuse the breach.

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.

An exemption clause in a contract can protect a party from liability for:

A major breach amounting to a repudiation of a contract will only occur at the commencement of a contract and not later.

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Remedies for Breach

Sale of Goods

Leasing and Bailment

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

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Filters