Exam 5: An Introduction to Contracts

A Canadian court hearing a disputed matter involving parties to a contract will rely on past decisions to determine a remedy for the dispute. Why is the court's reliance on past decisions considered to be an effective manner for it to determine an appropriate legal remedy?

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 use 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?

Down the legal road, one faces an ultimate settlement based on a correct answer ultimately derived from the court's interpretation of the contract.

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?

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?

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

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

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?

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.

Which of the following would most likely have the greatest influence in orchestrating the occurrence of an economic breach in a contractual business relationship?

The principle of equality of bargaining power follows the rationale that parties should be able to rely on contractual commitments.

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.

What will likely be the result if one of the parties to a contract fails to perform his or her obligations under that agreement?

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.

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"?

Which of the following is an example of a contract that would be governed by legislation and NOT by common law?

Which of the following is an example of an alternative method of dealing with a breach of contract, rather than starting a lawsuit?

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.