Question 1

A contract is terminated by agreement in which of the following situations?

Accepted Answer

A)  Breach 
B)  Frustration 
C)  Unilateral release 
D)  A written statement by one party to cancel an accepted order 
E)  The occurrence of a condition subsequent 
A)  Breach 
B)  Frustration 
C)  Unilateral release 
D)  A written statement by one party to cancel an accepted order 
E)  The occurrence of a condition subsequent E

Question 2

"When the court determines that a breach of contract has taken place, they will award monetary compensation in the form of damages to put the person in the position he would have been in had the contract been properly performed." Discuss the accuracy of this statement.

Accepted Answer

The statement is accurate. When determining what the person has lost, the court will look at the position they would have been in had the contract been properly performed.

Question 3

When a contract has been performed in all but a minor aspect of it, this is known as ________.

Accepted Answer

substantial performance

Question 4

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

Accepted Answer

When goods or services are involved, the

Question 5

All rules of contract formation apply when parties agree to discharge a contract.

Accepted Answer

A) True 
 B)False

Question 6

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered. Indicate two limitations on this principle.

Accepted Answer

Limitations on this principle are remote

Question 7

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Accepted Answer

There are many situations where it simpl

Question 8

Joe owed Harry $500, but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment. Explain Joe's legal position.

Accepted Answer

Joe must pay, although payment was tende

Question 9

A condition subsequent is an example of a contract being ended by agreement.

Accepted Answer

A) True 
 B)False

Question 10

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

Accepted Answer

A) True 
 B)False

Question 11

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

Accepted Answer

A)  The contract had been substantially performed and the option was still available. 
B)  The breach, although minor, rendered the contract unenforceable. 
C)  The breach, although minor, rendered the contract voidable at the option of the non-breaching party. 
D)  The contract had not been perfectly performed, so the contract was void. 
E)  No breach can be considered inconsequential at law. 
A)  The contract had been substantially performed and the option was still available. 
B)  The breach, although minor, rendered the contract unenforceable. 
C)  The breach, although minor, rendered the contract voidable at the option of the non-breaching party. 
D)  The contract had not been perfectly performed, so the contract was void. 
E)  No breach can be considered inconsequential at law.

Question 12

Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?

Accepted Answer

A)  The victim of a breach can recover damages even for the loss he could have avoided if he had tried to. 
B)  A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable. 
C)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract. 
D)  If a person owing money has tendered payment in a reasonable way, at a reasonable time, and it has been refused, he is free from any further obligation to pay. 
E)  If the court holds that a contract has been ended by frustration, the damages awarded by the court will be the same as if the contract was ended by a breach. 
A)  The victim of a breach can recover damages even for the loss he could have avoided if he had tried to. 
B)  A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable. 
C)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract. 
D)  If a person owing money has tendered payment in a reasonable way, at a reasonable time, and it has been refused, he is free from any further obligation to pay. 
E)  If the court holds that a contract has been ended by frustration, the damages awarded by the court will be the same as if the contract was ended by a breach.

Question 13

What is the importance of the distinction between a breach of warranty and a breach of condition?

Accepted Answer

When one of parties breaches a condition

Question 14

Explain the injunction as it is available in contract law.

Accepted Answer

The breaching party is ordered

Question 15

Pat O'Grady owes Robinson $5000 in cash, but resents Robinson talking about O'Grady's debt among mutual acquaintances. O'Grady wants to know which of the following tactics would be legal performance.

Accepted Answer

A)  Deliver the money to his house (instead of to his office) at 3:00 a.m. on the due date 
B)  Not pay Robinson until Robinson came for the money 
C)  Pay Robinson on time but pay it all in dimes 
D)  Pay him on time but with a cheque 
E)  Pay him on time in $5 bills 
A)  Deliver the money to his house (instead of to his office) at 3:00 a.m. on the due date 
B)  Not pay Robinson until Robinson came for the money 
C)  Pay Robinson on time but pay it all in dimes 
D)  Pay him on time but with a cheque 
E)  Pay him on time in $5 bills

Question 16

In the case of an anticipatory breach

Accepted Answer

A)  you have the right to demand the other side to perform, but you will not be required to perform yourself. 
B)  you have the right to demand performance or to sue for breach. 
C)  you must wait until the actual breach occurs before you can take any steps. 
D)  the contract is declared void ab initio. 
E)  the contract is unenforceable by either party. 
A)  you have the right to demand the other side to perform, but you will not be required to perform yourself. 
B)  you have the right to demand performance or to sue for breach. 
C)  you must wait until the actual breach occurs before you can take any steps. 
D)  the contract is declared void ab initio. 
E)  the contract is unenforceable by either party.

Question 17

Indicate three different types of equitable remedies and distinguish among them.

Accepted Answer

1. Specific performance. Here the court

Question 18

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300 that was displayed in the showroom at Joe's Fine Cars. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  Specific performance 
B)  Damages 
C)  Injunction 
D)  No remedy 
E)  Rescission 
A)  Specific performance 
B)  Damages 
C)  Injunction 
D)  No remedy 
E)  Rescission

Question 19

In a jurisdiction other than B.C., Mr. Buyer sued Mr. Seller for breach of contract because Mr. Seller failed to deliver a computer system on time in accordance with their contract. Mr. Seller argued that he was not in breach and that the contract had been frustrated. The computer had been destroyed by water when a careless driver knocked over a fire hydrant outside the warehouse holding the computer. No deposit had been paid. The court held that the contract was frustrated. Based on this ruling, how does the court handle the situation?

Accepted Answer

A)  Buyer will succeed against Seller for damages because the court will treat it as if it were an anticipatory breach. 
B)  The court will let the losses lie where they fell, despite any of Seller's costs in preparing the computer system. 
C)  Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract. 
D)  The court will look at the costs incurred and any payments made, and will apportion the losses between the parties. 
E)  The court will treat the contract as if there were a common mistake about the existence of the subject matter. 
A)  Buyer will succeed against Seller for damages because the court will treat it as if it were an anticipatory breach. 
B)  The court will let the losses lie where they fell, despite any of Seller's costs in preparing the computer system. 
C)  Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract. 
D)  The court will look at the costs incurred and any payments made, and will apportion the losses between the parties. 
E)  The court will treat the contract as if there were a common mistake about the existence of the subject matter.

Question 20

Dagney was an author of a popular series of children's books. She signed an agreement with her publisher, in which she agreed to have a new book in the series written by October 15th. As noted in the contract, the timing was critical to ensuring the books would be on the shelves before Christmas and in order to coincide with a massive promotion the publisher had been planning. Dagney had a terrible case of writer's block. By October 3rd, she realized that there was no way that she would have the book finished by the deadline. She emailed her publisher, admitting that she would not have the book finished in time. What are the publisher's options?

Accepted Answer

A)  The publisher cannot take any steps until October 15th, assuming Dagney does not deliver. 
B)  The publisher has no recourse because Dagney's case of writer's block has made performance impossible. 
C)  The publisher has the right to demand performance or sue. 
D)  The contract is voidable at the option of the publisher. 
E)  The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach. 
A)  The publisher cannot take any steps until October 15th, assuming Dagney does not deliver. 
B)  The publisher has no recourse because Dagney's case of writer's block has made performance impossible. 
C)  The publisher has the right to demand performance or sue. 
D)  The contract is voidable at the option of the publisher. 
E)  The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach.

A contract is terminated by agreement in which of the following situations?

"When the court determines that a breach of contract has taken place, they will award monetary compensation in the form of damages to put the person in the position he would have been in had the contract been properly performed." Discuss the accuracy of this statement.

When a contract has been performed in all but a minor aspect of it, this is known as ________.

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

All rules of contract formation apply when parties agree to discharge a contract.

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered. Indicate two limitations on this principle.

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Joe owed Harry $500, but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment. Explain Joe's legal position.

A condition subsequent is an example of a contract being ended by agreement.

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?

What is the importance of the distinction between a breach of warranty and a breach of condition?

Explain the injunction as it is available in contract law.

Pat O'Grady owes Robinson $5000 in cash, but resents Robinson talking about O'Grady's debt among mutual acquaintances. O'Grady wants to know which of the following tactics would be legal performance.

In the case of an anticipatory breach

Indicate three different types of equitable remedies and distinguish among them.

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300 that was displayed in the showroom at Joe's Fine Cars. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 9: The End of the Contractual Relationship

A contract is terminated by agreement in which of the following situations?

"When the court determines that a breach of contract has taken place, they will award monetary compensation in the form of damages to put the person in the position he would have been in had the contract been properly performed." Discuss the accuracy of this statement.

When a contract has been performed in all but a minor aspect of it, this is known as ________.

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

All rules of contract formation apply when parties agree to discharge a contract.

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered. Indicate two limitations on this principle.

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Joe owed Harry $500, but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment. Explain Joe's legal position.

A condition subsequent is an example of a contract being ended by agreement.

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?

What is the importance of the distinction between a breach of warranty and a breach of condition?

Explain the injunction as it is available in contract law.

Pat O'Grady owes Robinson $5000 in cash, but resents Robinson talking about O'Grady's debt among mutual acquaintances. O'Grady wants to know which of the following tactics would be legal performance.

In the case of an anticipatory breach

Indicate three different types of equitable remedies and distinguish among them.

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300 that was displayed in the showroom at Joe's Fine Cars. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters