Question 1

The purchase of stationery supplies from a retailer for cash,without an invoice or a receipt being provided in return,is an example of which of the following?

Accepted Answer

A)  an incomplete agreement 
B)  a formal contract 
C)  a standard form agreement 
D)  an informal agreement 
A)  an incomplete agreement 
B)  a formal contract 
C)  a standard form agreement 
D)  an informal agreement

Question 2

When managing desirable long-term contractual business relationships,each party's insistence on strict adherence to their respective legal rights may not be a suitable option for the business.Which of the following is an example of an alternative method of dealing with a breach of contract?

Accepted Answer

A)  Treat the subject matter of the contract as a standard or ordinary commodity. 
B)  Maintain the project's profitability by insisting on full compensation for any loss. 
C)  Seek sufficient compensation for any resulting loss, but extend time for payment. 
D)  Show respect for the other party while seeking a standard of reasonableness in return. 
A)  Treat the subject matter of the contract as a standard or ordinary commodity. 
B)  Maintain the project's profitability by insisting on full compensation for any loss. 
C)  Seek sufficient compensation for any resulting loss, but extend time for payment. 
D)  Show respect for the other party while seeking a standard of reasonableness in return.

Question 3

When hearing a case,the court will generally assume equality of bargaining power,even though it is not always a valid assumption.

Accepted Answer

A) True 
 B)False

Question 4

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

Accepted Answer

Contracts are the legal cornerstone of a

Question 5

When asked to secure a supplier for your company,what is the one goal you should be focused on to ensure the task is completed correctly?

Accepted Answer

A)  to ensure there is evidence of a deliberate intention to create legal relations 
B)  to select a reliable supplier, negotiate terms, and secure a written contract. 
C)  to secure terms that will allow for the recovery of related financial losses 
D)  to secure a commitment on price and the delivery date of the goods 
A)  to ensure there is evidence of a deliberate intention to create legal relations 
B)  to select a reliable supplier, negotiate terms, and secure a written contract. 
C)  to secure terms that will allow for the recovery of related financial losses 
D)  to secure a commitment on price and the delivery date of the goods

Question 6

Two accomplished software developers want to combine their talents on a lucrative project offered by a large document storage firm.The developers will have their agreed roles and responsibilities incorporated into a formal contract to be prepared by their respective lawyers.Which of the following is a valid representation of the legal significance of the relationship between the parties that will be evidenced by the contract?

Accepted Answer

A)  Each party will get exactly what it bargained for. 
B)  There has been a deliberate meeting of the minds. 
C)  Some of the parties to a contract can be sued under it. 
D)  No element of coercion exists between the contracting parties. 
A)  Each party will get exactly what it bargained for. 
B)  There has been a deliberate meeting of the minds. 
C)  Some of the parties to a contract can be sued under it. 
D)  No element of coercion exists between the contracting parties.

Question 7

A year ago,you negotiated a contract with a supplier on behalf of your company.The contract was broken six months ago and the supplier is about to commence legal proceedings for the breach.Can you personally be held liable for the losses resulting from the breach? Explain.

Accepted Answer

You can't be sued by the supplier for br

Question 8

Traditionally,contract law focuses its attention on the need to preserve long-term business relationships.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

With respect to a contractual business relationship,why would a lawsuit be considered the least favourable choice of remedy for non-performance?

Accepted Answer

A)  The court's remedy will focus on the parties' economic realities. 
B)  The court will limit its remedy to focus on the specific disputed transaction. 
C)  The court will direct its decision strictly to the finding of the correct answer. 
D)  The court's decision will focus on the parties' best business options 
A)  The court's remedy will focus on the parties' economic realities. 
B)  The court will limit its remedy to focus on the specific disputed transaction. 
C)  The court will direct its decision strictly to the finding of the correct answer. 
D)  The court's decision will focus on the parties' best business options

Question 11

Contract law ensures that all parties concerned may rely on the terms included in the contract.

Accepted Answer

A) True 
 B)False

Question 12

Most Canadian jurisdictions require contracts regarding interests in land to be in written form.

Accepted Answer

A) True 
 B)False

Question 13

The legal rules governing contracts are typically derived from the common law.Which of the following is an example of a contract that would be governed by legislation?

Accepted Answer

A)  A contract involving the sale of goods governed by the Sale of Goods Act. 
B)  A contract involving the supply of services governed by the Employment Act. 
C)  A contract retaining a lawyer to perform legal services on behalf of a client. 
D)  A verbal contract involving an exchange of services for a set monetary price. 
A)  A contract involving the sale of goods governed by the Sale of Goods Act. 
B)  A contract involving the supply of services governed by the Employment Act. 
C)  A contract retaining a lawyer to perform legal services on behalf of a client. 
D)  A verbal contract involving an exchange of services for a set monetary price.

Question 14

A large greenhouse grower wanting to source a suitable organic liquid fertilizer contacted Organics.The grower is willing to pay a premium price for Organics' product.Accepting the order would mean Organics could not completely fill existing orders to its current customers.Organics desires the new business but wants to maintain its existing customer base.Which of the following strategies would provide Organics with the best possible solution to this problem?

Accepted Answer

A)  Abandon all but the most important of the existing orders and fill the new order. 
B)  Present an ultimatum on existing orders offering delivery on a later date or nothing at all. 
C)  Comply with existing obligations, fill the orders, and offer the new business what is left. 
D)  Offer a price break on existing orders in return for varying quantity and delivery date. 
A)  Abandon all but the most important of the existing orders and fill the new order. 
B)  Present an ultimatum on existing orders offering delivery on a later date or nothing at all. 
C)  Comply with existing obligations, fill the orders, and offer the new business what is left. 
D)  Offer a price break on existing orders in return for varying quantity and delivery date.

Question 15

Rachel has been laid off from her job and will be unable to meet all of her financial obligations if a new job does not materialize in six months.She canvassed the possibility of selling her home with several agents.One agent offered a reduced commission rate and a guarantee her home will sell within three months without a price reduction.Why should Rachel secure a formal contract based on her negotiations with this agent?

Accepted Answer

A)  to ensure the arrangement meets the agent's needs and protects the agent's interests. 
B)  to ensure the agent is motivated to avoid damaging his business reputation 
C)  to obtain favourable terms that provide for no-fault cancellation of the contract 
D)  to allow Rachel to exercise her right to sue if the agent fails to perform as promised 
A)  to ensure the arrangement meets the agent's needs and protects the agent's interests. 
B)  to ensure the agent is motivated to avoid damaging his business reputation 
C)  to obtain favourable terms that provide for no-fault cancellation of the contract 
D)  to allow Rachel to exercise her right to sue if the agent fails to perform as promised

Question 16

Contract law principles will be applied by a judge to resolve disputes based on a contract,whether the parties were aware of those principles or not.

Accepted Answer

A) True 
 B)False

Question 17

Juha agreed to hire Zen Home Builders Ltd.(Zen)to construct his new home.Juha,Zen,and their lawyers met to review and sign a contract that provided for specific types of environmentally safe construction materials to be used.In many instances,Zen failed to used the stipulated "green" construction materials.What would a court,faced with determining a resolution to the ensuing dispute,rely on the existence of to establish the existence of the contract?

Accepted Answer

A)  Juha is entitled to rescind the contract due to poor contractual performance. 
B)  Parties are free to create a framework of rules judges automatically enforce. 
C)  Every type of contract is subject to some set of mandatory legal rules. 
D)  There was an intention between the parties to create a legal relationship. 
A)  Juha is entitled to rescind the contract due to poor contractual performance. 
B)  Parties are free to create a framework of rules judges automatically enforce. 
C)  Every type of contract is subject to some set of mandatory legal rules. 
D)  There was an intention between the parties to create a legal relationship.

Question 18

Which of the following is a valid reason for a court to accept that there is a legally binding contract governing the actions of the parties named to it?

Accepted Answer

A)  Contract law ensures that each party gets what it bargained for. 
B)  The parties to the contract are permitted to rely on the terms they negotiated. 
C)  Only the parties to a contract can sue or be sued on it. 
D)  The contract clearly contains an offer and acceptance of that offer. 
A)  Contract law ensures that each party gets what it bargained for. 
B)  The parties to the contract are permitted to rely on the terms they negotiated. 
C)  Only the parties to a contract can sue or be sued on it. 
D)  The contract clearly contains an offer and acceptance of that offer.

Question 19

With respect to what the terms contained in a negotiated formal contract should ultimately be representative of,each parties' reasonable expectations will most likely be founded on which of the following?

Accepted Answer

A)  that all of the parties to the contract have legal capacity to contract 
B)  the time period within which all obligations must be performed 
C)  that there has been a formal intention to create legal relations 
D)  the binding commitments that form the essence of the contract 
A)  that all of the parties to the contract have legal capacity to contract 
B)  the time period within which all obligations must be performed 
C)  that there has been a formal intention to create legal relations 
D)  the binding commitments that form the essence of the contract

Exam 5: An Introduction to Contracts

The purchase of stationery supplies from a retailer for cash,without an invoice or a receipt being provided in return,is an example of which of the following?

When managing desirable long-term contractual business relationships,each party's insistence on strict adherence to their respective legal rights may not be a suitable option for the business.Which of the following is an example of an alternative method of dealing with a breach of contract?

When hearing a case,the court will generally assume equality of bargaining power,even though it is not always a valid assumption.

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

When asked to secure a supplier for your company,what is the one goal you should be focused on to ensure the task is completed correctly?

A year ago,you negotiated a contract with a supplier on behalf of your company.The contract was broken six months ago and the supplier is about to commence legal proceedings for the breach.Can you personally be held liable for the losses resulting from the breach? Explain.

Traditionally,contract law focuses its attention on the need to preserve long-term business relationships.

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.

With respect to a contractual business relationship,why would a lawsuit be considered the least favourable choice of remedy for non-performance?

Contract law ensures that all parties concerned may rely on the terms included in the contract.

Most Canadian jurisdictions require contracts regarding interests in land to be in written form.

The legal rules governing contracts are typically derived from the common law.Which of the following is an example of a contract that would be governed by legislation?

Contract law principles will be applied by a judge to resolve disputes based on a contract,whether the parties were aware of those principles or not.

Which of the following is a valid reason for a court to accept that there is a legally binding contract governing the actions of the parties named to it?

With respect to what the terms contained in a negotiated formal contract should ultimately be representative of,each parties' reasonable expectations will most likely be founded on which of the following?

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

Personal Property

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Relationships

Sales and Marketing: The Contract, Product, and Promotion

Sales and Marketing: Price, Distribution, and Risk Management

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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