Question 1

A court will sometimes recognize the existence of an implied term from customs in a particular trade or transaction.

Accepted Answer

A) True 
 B)False

Question 2

Evidence regarding certain oral terms that were discussed between the parties to a contract that has been reduced to writing,

Accepted Answer

A)  cannot be introduced into court because of the rule regarding consideration. 
B)  cannot be introduced into court because of the parol evidence rule. 
C)  cannot be introduce into court because there were no prior dealings between the parties. 
D)  cannot be introduced into court because of the rule of express terms. 
E)  cannot be introduced in court because of the rule of implied terms. 
A)  cannot be introduced into court because of the rule regarding consideration. 
B)  cannot be introduced into court because of the parol evidence rule. 
C)  cannot be introduce into court because there were no prior dealings between the parties. 
D)  cannot be introduced into court because of the rule of express terms. 
E)  cannot be introduced in court because of the rule of implied terms.

Question 3

Conditions precedent can be enforced if they are oral.

Accepted Answer

A) True 
 B)False

Question 4

What is the parole evidence rule?

Accepted Answer

A)  The rule that requires a party to a contract from adducing evidence from a third party regarding discussions he may have had with such a third party about the provisions of a contract. 
B)  A rule that prevents convicted persons on parole from entering into contractual obligations. 
C)  The rule that prevents a party from adding to a contract a term that was previously agreed upon, but was not included in the final written contract. 
D)  The rule that requires that persons on parole seek the approval of a court before entering into any contract. 
E)  The rule that prevents a court from interpreting a contract that is illegal. 
A)  The rule that requires a party to a contract from adducing evidence from a third party regarding discussions he may have had with such a third party about the provisions of a contract. 
B)  A rule that prevents convicted persons on parole from entering into contractual obligations. 
C)  The rule that prevents a party from adding to a contract a term that was previously agreed upon, but was not included in the final written contract. 
D)  The rule that requires that persons on parole seek the approval of a court before entering into any contract. 
E)  The rule that prevents a court from interpreting a contract that is illegal.

Question 5

The dictionary meaning of a word does not always clarify its meaning. Explain.

Accepted Answer

One of the approaches to interpretation

Question 6

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 an appraisal warranty.

Accepted Answer

A) True 
 B)False

Question 7

What is a condition precedent?

Accepted Answer

A)  An event that is related to a contract and happens before a contract takes effect. 
B)  An unconditional undertaking given by a promisee to the promisor to perform an event before a contract takes effect. 
C)  An undertaking, conditional on the execution of a contract between the parties, that a promisee makes to a promisor prior to entering into a contract. 
D)  An event that happens before a contract takes effect. 
E)  Any set of circumstances or events that the parties agree must be satisfied or must happen before their contract takes effect. 
A)  An event that is related to a contract and happens before a contract takes effect. 
B)  An unconditional undertaking given by a promisee to the promisor to perform an event before a contract takes effect. 
C)  An undertaking, conditional on the execution of a contract between the parties, that a promisee makes to a promisor prior to entering into a contract. 
D)  An event that happens before a contract takes effect. 
E)  Any set of circumstances or events that the parties agree must be satisfied or must happen before their contract takes effect.

Question 8

In choosing between conflicting testimony a court will

Accepted Answer

A)  refuse to accept either testimony because one person's word is good as another's and will impose a meaning that is determined by a jury of ordinary persons. 
B)  choose a version of the story that is in accordance with well known legal principles. 
C)  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 of the credibility of the parties. 
D)  refuse to accept either testimony because one persons word is good as anothers', and will impose its own meaning. 
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 good as another's and will impose a meaning that is determined by a jury of ordinary persons. 
B)  choose a version of the story that is in accordance with well known legal principles. 
C)  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 of the credibility of the parties. 
D)  refuse to accept either testimony because one persons word is good as anothers', and will impose its own meaning. 
E)  choose the version of the story that is in accordance with societal norms.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would a court NOT consider in interpreting terms in a contract:

Accepted Answer

A)  industry practice 
B)  what each party says it actually intended 
C)  what the parties discussed during their negotiations 
D)  subsequent oral agreements 
E)  oral conditions precedent 
A)  industry practice 
B)  what each party says it actually intended 
C)  what the parties discussed during their negotiations 
D)  subsequent oral agreements 
E)  oral conditions precedent

Exam 11: The Interpretation of Contracts

A court will sometimes recognize the existence of an implied term from customs in a particular trade or transaction.

Evidence regarding certain oral terms that were discussed between the parties to a contract that has been reduced to writing,

Conditions precedent can be enforced if they are oral.

What is the parole evidence rule?

The dictionary meaning of a word does not always clarify its meaning. Explain.

What is a condition precedent?

In choosing between conflicting testimony a court will

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

Which of the following would a court NOT consider in interpreting terms in a contract:

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

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

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