Exam 7: Contracts: Ending Contracts

Parties have a duty of good faith in contracts for the purchase and sale of insurance.

Canadian courts view an award of damages in a breach of contract as punishment.

Damages is a remedy that is in the form of money.

Parties to an e-contract generally have the same legal remedies as traditional contracts.

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The court may also order Mario to continue to perform at Barnum's theatre because he had promised to work only for him.

Guthrie Caterers failed to turn up as contracted to cater George and Susan's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. This was an implied repudiation since Guthrie did not contact George and Susan and actually tell them, "We will not be catering your wedding."

A court will award damages for unforeseen losses from a breach of contract.

In a contract for employment, parties have a duty of good faith when terminating an employee.

Provincial consumer protection legislation provides clarity with e-contracts for a business to consumer transaction.

The purpose for an award of punitive 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.

An assignment into bankruptcy can relieve a party from performance of a contract.