Exam 7: Contracts: Ending Contracts

An innocent party to a breach of contract may be awarded less damages if they have not taken steps to mitigate the breach of contract.

The purpose for an award of damages in a breach of contract is to put the innocent party in the same position it would have been in if the contract had been performed.

When one party has performed almost all their obligations under the contract, substantial performance may end the contract.

A clause in a contract that places a limit on the amount of damages due from a breach is a limitation of liability clause.

Novation is when one party to a contract is replaced with a new party.

An award of damages is for actual losses and not any emotional consequences caused to the innocent party.

In an e-contract dispute, the Courts will determine the forum to be used based on a "balance of convenience."

Performance is when a party's contractual obligations are completed to the satisfaction of the other party.

Courts use the reasonable person test to determine if a contract has been performed.

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. The circumstances indicate express repudiation by Antoine.

A breach is the failure of a party to perform its obligations to the other party's satisfaction.

A warranty is a major term in a contract.

Parties can agree to end their contract in the agreement itself.

Damages will not be awarded in a breach of contract if the losses were too remote.

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. Antoine is in breach of contract.

An injunction is a discretionary remedy.

Which of the following is not required for a breach of contract to end the contract?

A warranty is a minor term in a contract.

Courts will order equitable remedies for all breaches of contract.

Frustration will end a contract only when the parties are aware that an event could occur prior to entering into the contract.