Exam 5: An Introduction to Contracts

Issues can arise in contractual relationships that will require owners and managers to be conscious of the fact that business relationships are long-term,and so is reputation.

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(True/False)

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Question 1

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True

As a general rule,only parties to a contract can sue and be sued on it.

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Question 2

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True

Identify and briefly explain the circumstances where a party might opt to deliberately breach a contract by refusing to honour its promises to the other side.Provide an example and a possible alternative to an outright breach of existing contractual obligations.

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Question 3

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There may be situations in which the cost of paying compensation to the other party is less than the benefit to be gained by breaching an existing contract through non-performance of obligations.A business may be faced with circumstances where there may be a more profitable opportunity to sell a manufacturer's production to a different buyer at a much higher price over a longer period of time.In that instance,it may be possible to offer a price reduction as an incentive under the existing contract that would allow for a lesser quantity to be supplied over a longer delivery period or later delivery of the quantity contracted for.

What types of employees should a company's head of risk management choose when putting together a negotiating team?

(Multiple Choice)

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Question 4

How should a manufacturer try to salvage its reputation after it has been discovered to have knowingly produced and sold a defective product to the public?

(Multiple Choice)

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Question 5

With respect to the relationship that exists between contractual parties,what is meant by the phrase "meeting of the minds"?

(Multiple Choice)

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Question 6

Rachel decides to sell her home,so she meets with several real estate agents.She has decided to select the agent who offered a reduced commission rate and a guarantee that her home will sell within three months without a price reduction.How will Rachel's rights be impacted if she fails to enter into a formal contract with the agent?

(Multiple Choice)

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Question 7

Courts will take into account the impact on the long-term relationship between the parties when applying contract law principles.

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Question 8

Fatima needs to copy and bind five sets of legal submissions with beige covers,but none are left in the supply cabinet.The office manager offers to reimburse Fatima for the cost of the covers and buy her lunch from petty cash if she will dash to the nearby office supply store to buy them.Fatima agrees.What is the nature of the arrangement negotiated between Fatima and the office manager?

(Multiple Choice)

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Question 9

In most instances,the rules governing contractual disputes are based on the common law.

(True/False)

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Question 10

What is the likely outcome when a court is asked to resolve a dispute involving parties that have reached an incomplete agreement?

(Multiple Choice)

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Question 11

What sequence of procedures will a court follow when asked to determine a matter involving a contractual dispute between two large corporations?

(Multiple Choice)

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Question 12

Which of the following best describes the relationship between bargaining power and the law of contract?

(Multiple Choice)

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Question 13

Luna Quan has been directed to attend a meeting tomorrow for the purpose of negotiating a new supply contract.It is vitally important that Luna pay particular attention during those negotiations to when simple business communications transform into legal obligations.

(True/False)

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Question 14

It is a legal assumption in contract law that parties to a contract are able to look out for their own interests.

(True/False)

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Question 15

Explain how the operation of contract law makes it possible for the wheels of commerce to turn efficiently and effectively.

(Essay)

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Question 16

What test will a court apply when asked to determine a matter involving a dispute between parties regarding the formation of a contract?

(Multiple Choice)

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Question 17

Business people regularly breach contracts because the decision to breach a contract is both a business and legal decision.

(True/False)

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Question 18

All contracts are complex documents that must be prepared by lawyers.

(True/False)

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Question 19

Under what circumstances would a court apply the objective standard test?

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Question 20

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Exam 5: An Introduction to Contracts

Issues can arise in contractual relationships that will require owners and managers to be conscious of the fact that business relationships are long-term,and so is reputation.

As a general rule,only parties to a contract can sue and be sued on it.

Identify and briefly explain the circumstances where a party might opt to deliberately breach a contract by refusing to honour its promises to the other side.Provide an example and a possible alternative to an outright breach of existing contractual obligations.

What types of employees should a company's head of risk management choose when putting together a negotiating team?

How should a manufacturer try to salvage its reputation after it has been discovered to have knowingly produced and sold a defective product to the public?

With respect to the relationship that exists between contractual parties,what is meant by the phrase "meeting of the minds"?

Courts will take into account the impact on the long-term relationship between the parties when applying contract law principles.

In most instances,the rules governing contractual disputes are based on the common law.

What is the likely outcome when a court is asked to resolve a dispute involving parties that have reached an incomplete agreement?

What sequence of procedures will a court follow when asked to determine a matter involving a contractual dispute between two large corporations?

Which of the following best describes the relationship between bargaining power and the law of contract?

Luna Quan has been directed to attend a meeting tomorrow for the purpose of negotiating a new supply contract.It is vitally important that Luna pay particular attention during those negotiations to when simple business communications transform into legal obligations.

It is a legal assumption in contract law that parties to a contract are able to look out for their own interests.

Explain how the operation of contract law makes it possible for the wheels of commerce to turn efficiently and effectively.

What test will a court apply when asked to determine a matter involving a dispute between parties regarding the formation of a contract?

Business people regularly breach contracts because the decision to breach a contract is both a business and legal decision.

All contracts are complex documents that must be prepared by lawyers.

Under what circumstances would a court apply the objective standard test?

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

Forming Contractual Relationships

The Terms of a Contract

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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