Exam 7: The Terms of a Contract

When a new and separate contract is formed between parties who had an earlier contract dealing with the same matter,the terms,conditions,and exclusions will automatically be assumed to be identical to those found in the earlier contract.

Some Canadian courts have ruled that a good faith clause is not an automatic term of every contract and can be implied only when it is consistent with the parties' intentions.

Which of the following would provide that a supplier will not be liable to the retailer if it is fails to deliver products to it on time?

Identify and briefly described how a situation involving delivery of an quantity of product exceeding the contracted amount would be resolved under the Sale of Goods Act.

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

Sheps & Shaps LLP contracted to receive a weekly delivery of 10 cartons of 8 x 11 bond paper and 5 cartons of 11 x 14 bond paper.This Tuesday,however,their supplier delivered 15 cartons of 8 x 11 bond and 10 cartons of 8 x 14.The office manager refused to accept the delivery.Which of the following would you identify as the source of law that allows contractual terms regarding quantity to be imposed?

Liquidated damages clauses are never upheld by courts since they unfairly limit damage claims.

Which of the following could you reasonably expect your risk management supervisor to indicate as the most effective use of a business contract?

Which of the following principles could you reasonably expect Canadian common law courts to apply when faced by cases dealing with a standard form contracts?

Identify and briefly describe the circumstances that are of particular importance to negotiators with respect to evaluating risks associated with increases in the cost of materials used to produce a product.Identify and briefly describe contractual terms that may be applied to reduce the risk of market price fluctuations.

Which of the following legislations would you need to rely on if you wanted to ensure that terms are implied into a contractual business arrangement?

Which of the following is a distinguishing characteristic of the doctrine of frustration?

Justice Hall listened to plaintiff's counsel argue his client's position relating to a contractual dispute.Counsel stressed that an unstated provision was relevant to the contract and necessary to give effect to the contractual objectives of the parties.If Justice Hall accepts counsel's argument,how do you think he will proceed?

A supplier and a retailer have a long,established relationship.Earlier contracts between them have always provided the standard "within 30 days of delivery" payment provision.A new contract makes no reference to payment terms.Which of the following would a court most likely rely on to arrive at a decision that payment is due within 30 days of delivery?

Which of the following must be present in order for a condition subsequent to be recognized as legally enforceable?

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

When a court must apply the principles of the rules of construction,it may come to a conclusion simply by asking how a reasonable person would interpret the terms.

Entire contract clauses are used to ensure that the parole evidence rule applies to the contract.

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?

Identify four grounds used by the courts for introducing implied terms into contracts.Give an example of each.