Question 1

Under what circumstances might a court apply the "Best Evidence Rule"?

Accepted Answer

A)  if the parties have entered into an oral contract with witnesses 
B)  when interpreting an implied term in a written contract 
C)  when applying an electronic contract 
D)  where evidence has been lost before trial 
A)  if the parties have entered into an oral contract with witnesses 
B)  when interpreting an implied term in a written contract 
C)  when applying an electronic contract 
D)  where evidence has been lost before trial

Question 2

In Glenko Enterprises Ltd.v.Ernie Keller Contractors Ltd.,[1994] 10 W.W.R.641 (Man.Q.B.),aff'd [1996] 5 W.W.R.135 (Man
C.A.),the court found in favour of the subcontractor plaintiff,stating interest was properly due on the outstanding account it was owed.Why did the court find in favour of the plaintiff?

Accepted Answer

A)  Trade practices are a reliable way of implying terms into an existing contract. 
B)  Trade practices are automatically implied to parties' contractual obligations. 
C)  The defendant followed the industry practice of charging interest on its accounts. 
D)  The parties had a history of past dealings,which clarified their intentions. 
A)  Trade practices are a reliable way of implying terms into an existing contract. 
B)  Trade practices are automatically implied to parties' contractual obligations. 
C)  The defendant followed the industry practice of charging interest on its accounts. 
D)  The parties had a history of past dealings,which clarified their intentions.

Question 3

Nathan is the owner of a small drapery manufacturing business.He has a written contract with a fabric supplier,but some aspects of their agreement were never put into the written document.Why will Nathan have difficulty enforcing the verbal aspects of their agreement?

Accepted Answer

A)  because the parol evidence rule forbids outside evidence as to the terms of the contract when the written contract is clear 
B)  because verbal promises cannot form the basis of contractual obligations 
C)  because the contra proferentum rule will result in a court rejecting the verbal terms of the agreement 
D)  because the court cannot imply terms into a contract 
A)  because the parol evidence rule forbids outside evidence as to the terms of the contract when the written contract is clear 
B)  because verbal promises cannot form the basis of contractual obligations 
C)  because the contra proferentum rule will result in a court rejecting the verbal terms of the agreement 
D)  because the court cannot imply terms into a contract

Question 4

Parties to a sale of goods contract are always bound by the implied terms established by the Sale of Goods Act.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding contract terms is correct?

Accepted Answer

A)  Contract terms are an aid for a court to interpret a business arrangement. 
B)  Contract terms may be express or implied. 
C)  Contract terms must be in writing to be effective. 
D)  Contract terms must be reasonable. 
A)  Contract terms are an aid for a court to interpret a business arrangement. 
B)  Contract terms may be express or implied. 
C)  Contract terms must be in writing to be effective. 
D)  Contract terms must be reasonable.

Question 6

Under the UEEA,which of the following would immediately tell you that you have satisfied the best evidence rule with respect to an electronic record?

Accepted Answer

A)  proving the authenticity of an electronic record is as it was claimed to be 
B)  proving the integrity regarding the claimed authenticity of the electronic record 
C)  proving the integrity of the electronic system that recorded the data 
D)  proving authenticity by producing the original electronic contract 
A)  proving the authenticity of an electronic record is as it was claimed to be 
B)  proving the integrity regarding the claimed authenticity of the electronic record 
C)  proving the integrity of the electronic system that recorded the data 
D)  proving authenticity by producing the original electronic contract

Question 7

A court that is hearing a contractual dispute has determined that an ambiguous term must be construed against the party drafting the agreement.What is name for the doctrine the court is applying?

Accepted Answer

A)  parol evidence rule 
B)  quantum meruit 
C)  implied contract rule 
D)  contra proferentum rule 
A)  parol evidence rule 
B)  quantum meruit 
C)  implied contract rule 
D)  contra proferentum rule

Question 8

What is the policy rationale for contractual quantum meruit?

Accepted Answer

A)  The assistance provided by implied terms is sporadic and uncertain. 
B)  It is not the intention of the parties that goods or services are provided for free. 
C)  Parties who fail to document their contracts should nonetheless be bound by their promises. 
D)  The parties' intention to impose a penalty should be upheld. 
A)  The assistance provided by implied terms is sporadic and uncertain. 
B)  It is not the intention of the parties that goods or services are provided for free. 
C)  Parties who fail to document their contracts should nonetheless be bound by their promises. 
D)  The parties' intention to impose a penalty should be upheld.

Question 9

A product that contains a shrink-wrap licence typically bears a notice stating that opening the package constitutes agreement to the licence terms.

Accepted Answer

A) True 
 B)False

Question 10

What would a negotiator most likely caution against with respect to the notion of building flexibility into contractual agreements?

Accepted Answer

A)  the risk of having no contract at all if the resulting document is too unfixed 
B)  the risk that the parties will be allowed to terminate the contract altogether 
C)  the risk of having the parol evidence applied regarding evidence of intent 
D)  the risk that voluntarily altering the contract will make it unenforceable 
A)  the risk of having no contract at all if the resulting document is too unfixed 
B)  the risk that the parties will be allowed to terminate the contract altogether 
C)  the risk of having the parol evidence applied regarding evidence of intent 
D)  the risk that voluntarily altering the contract will make it unenforceable

Question 11

What is the function of an express term with respect to a contract?

Accepted Answer

A)  It gives effect to the parties' intentions. 
B)  It brings an existing contract to an end. 
C)  It explicitly states contractual promises. 
D)  It implicitly states contractual promises. 
A)  It gives effect to the parties' intentions. 
B)  It brings an existing contract to an end. 
C)  It explicitly states contractual promises. 
D)  It implicitly states contractual promises.

Question 12

Courts are not allowed to refer to external sources (e.g.,dictionaries)when trying to determine the meaning of ambiguous terms used in contracts.

Accepted Answer

A) True 
 B)False

Question 13

The use of electronic communications creates difficulties in the application of contract law.Some jurisdictions have implemented legislation based on the recommendations of the Uniform Law Conference of Canada.Discuss.

Accepted Answer

Electronic business involves the negotia

Question 14

EcoGrow Inc.contractually agreed to deliver two tons of organic fertilizer on March 16 to Organics Inc.The contract provided for the payment of $1000 for each day the delivery may be delayed.An ice storm closed highways,causing Eco to deliver four days late.What could you likely expect a lawyer representing Organics to argue before the court hearing a dispute over the non-payment of the late fee?

Accepted Answer

A)  to have the court apply the parole evidence rule to the contract 
B)  to ignore the parties' intentions and apply the plain-meaning rule 
C)  to have the court apply the rules of construction to the contract 
D)  to ignore the rules of construction and apply the entire contract rule 
A)  to have the court apply the parole evidence rule to the contract 
B)  to ignore the parties' intentions and apply the plain-meaning rule 
C)  to have the court apply the rules of construction to the contract 
D)  to ignore the rules of construction and apply the entire contract rule

Question 15

Which of the following would automatically end a contract with a supplier if the buyer's sales fall below a stated level?

Accepted Answer

A)  an exemption clause 
B)  a condition precedent 
C)  a liquidated damages clause 
D)  a condition subsequent 
A)  an exemption clause 
B)  a condition precedent 
C)  a liquidated damages clause 
D)  a condition subsequent

Question 16

Bad faith is conduct that is contrary to community standards of honesty,reasonableness,or fairness.

Accepted Answer

A) True 
 B)False

Question 17

An implied term may be imposed by the court in order to give effect to the parties' intentions.

Accepted Answer

A) True 
 B)False

Question 18

What is a valid criticism of the common law with respect to the current application of an implied term of good faith by the courts when considering dealings between contractual parties?

Accepted Answer

A)  Business interests are not served by good faith conduct of contractual obligations. 
B)  Business interests are not opposed to bad faith conduct to achieve added benefit. 
C)  Opposing rulings create uncertainty,which is not the function of common law. 
D)  Opposing rulings maintain the rule that parties must take care of themselves. 
A)  Business interests are not served by good faith conduct of contractual obligations. 
B)  Business interests are not opposed to bad faith conduct to achieve added benefit. 
C)  Opposing rulings create uncertainty,which is not the function of common law. 
D)  Opposing rulings maintain the rule that parties must take care of themselves.

Question 19

Identify and briefly describe the conflicting consideration that arises from the common law rules of construction.Identify how this conflict arises and under what circumstances parties might find themselves facing such a dilemma.

Accepted Answer

The common law rules of construction cre

Question 20

What is the name given to a clause in which the parties agree that their contract is complete as written?

Accepted Answer

A)  parol evidence clause 
B)  entire contract clause 
C)  express term 
D)  exclusion clause 
A)  parol evidence clause 
B)  entire contract clause 
C)  express term 
D)  exclusion clause

Exam 7: The Terms of a Contract

Under what circumstances might a court apply the "Best Evidence Rule"?

Nathan is the owner of a small drapery manufacturing business.He has a written contract with a fabric supplier,but some aspects of their agreement were never put into the written document.Why will Nathan have difficulty enforcing the verbal aspects of their agreement?

Parties to a sale of goods contract are always bound by the implied terms established by the Sale of Goods Act.

Which of the following statements regarding contract terms is correct?

Under the UEEA,which of the following would immediately tell you that you have satisfied the best evidence rule with respect to an electronic record?

A court that is hearing a contractual dispute has determined that an ambiguous term must be construed against the party drafting the agreement.What is name for the doctrine the court is applying?

What is the policy rationale for contractual quantum meruit?

A product that contains a shrink-wrap licence typically bears a notice stating that opening the package constitutes agreement to the licence terms.

What would a negotiator most likely caution against with respect to the notion of building flexibility into contractual agreements?

What is the function of an express term with respect to a contract?

Courts are not allowed to refer to external sources (e.g.,dictionaries)when trying to determine the meaning of ambiguous terms used in contracts.

The use of electronic communications creates difficulties in the application of contract law.Some jurisdictions have implemented legislation based on the recommendations of the Uniform Law Conference of Canada.Discuss.

Which of the following would automatically end a contract with a supplier if the buyer's sales fall below a stated level?

Bad faith is conduct that is contrary to community standards of honesty,reasonableness,or fairness.

An implied term may be imposed by the court in order to give effect to the parties' intentions.

What is a valid criticism of the common law with respect to the current application of an implied term of good faith by the courts when considering dealings between contractual parties?

Identify and briefly describe the conflicting consideration that arises from the common law rules of construction.Identify how this conflict arises and under what circumstances parties might find themselves facing such a dilemma.

What is the name given to a clause in which the parties agree that their contract is complete as written?

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

An Introduction to Contracts

Forming Contractual Relationships

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

The Sale of Goods

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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