Question 1

Which of the following statements is correct with respect to breach of contract?

Accepted Answer

A)  When a condition is breached, the victim can treat the contract as ended. 
B)  When a condition is breached, a person can only sue for damages but must perform their part of the contract. 
C)  When a warranty is breached, the victim can treat the contract as ended. 
D)  When a contract for the purchase of goods is breached, the warranty will require that the goods be repaired by the seller. 
E)  When a contract is repudiated before performance is due, the victim must wait until the time of performance before taking any action. 
A)  When a condition is breached, the victim can treat the contract as ended. 
B)  When a condition is breached, a person can only sue for damages but must perform their part of the contract. 
C)  When a warranty is breached, the victim can treat the contract as ended. 
D)  When a contract for the purchase of goods is breached, the warranty will require that the goods be repaired by the seller. 
E)  When a contract is repudiated before performance is due, the victim must wait until the time of performance before taking any action.

Question 2

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that

Accepted Answer

A)  if the purchaser does not obtain the financing, he is in breach of contract. 
B)  if the purchaser does not obtain the financing, the contract is frustrated. 
C)  if the purchaser does obtain the financing and properly notifies the seller, the contract is then in full force and effect. 
D)  there is a contract whether the purchaser gets the financing or not, because the statement is just a statement of intention and doesn't affect the contract. 
E)  the obtaining of financing is a condition subsequent and ends the contract. 
A)  if the purchaser does not obtain the financing, he is in breach of contract. 
B)  if the purchaser does not obtain the financing, the contract is frustrated. 
C)  if the purchaser does obtain the financing and properly notifies the seller, the contract is then in full force and effect. 
D)  there is a contract whether the purchaser gets the financing or not, because the statement is just a statement of intention and doesn't affect the contract. 
E)  the obtaining of financing is a condition subsequent and ends the contract.

Question 3

Rick was a talented computer programmer and had agreed to work for Bill in his successful computer software business, signing a one-year contract to that effect. On the day he was to start work, and after a week of training where he learned a considerable amount of confidential information about Bill's operation, he phoned Bill and announced that he was going to work for Bill's competitor instead. Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

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

Question 4

Failure to make an installment payment will often trigger an acceleration clause, which makes the entire outstanding debt due and payable immediately.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would most likely result in the court finding the contract had been discharged by frustration?

Accepted Answer

A)  Cooper contracts to deliver ten bushels of ripe tomatoes to Haig's restaurant, but Cooper's tomato crop is destroyed by hail a few days before the delivery date. 
B)  McGee contracts to give a lecture at a convention on modern marketing, but the convention is cancelled because of an epidemic. 
C)  Moore, a sculptor, was delivering a $15,000 work when he lost control of the car and the work was crushed. He had been drinking heavily and had not bothered to wrap or box the work. 
D)  Binks agreed to purchase a business from Kealy, but Binks suffered such great losses in the recent stock market crash that he couldn't afford to go through with it. 
E)  McDonald agreed to buy Thornburn's horse, but unknown to both of them, at the time the contract was made the horse was dead. 
A)  Cooper contracts to deliver ten bushels of ripe tomatoes to Haig's restaurant, but Cooper's tomato crop is destroyed by hail a few days before the delivery date. 
B)  McGee contracts to give a lecture at a convention on modern marketing, but the convention is cancelled because of an epidemic. 
C)  Moore, a sculptor, was delivering a $15,000 work when he lost control of the car and the work was crushed. He had been drinking heavily and had not bothered to wrap or box the work. 
D)  Binks agreed to purchase a business from Kealy, but Binks suffered such great losses in the recent stock market crash that he couldn't afford to go through with it. 
E)  McDonald agreed to buy Thornburn's horse, but unknown to both of them, at the time the contract was made the horse was dead.

Question 6

Which one of the following does not terminate a contract?

Accepted Answer

A)  The buyer and seller agree orally to cancel their contract when neither one has performed his obligations under it. 
B)  Minnie and Mickey agree that Minnie will take less than the amount Mickey owes as full payment of his debt, and Mickey will pay her two days early. 
C)  Twain had contracted to build a model of a proposed building for architects who were to meet with their clients on March 10. The model was destroyed the night of March 9 when a car left the road and crashed into the workshop and destroyed the model. 
D)  Fred no longer wants to honour his contract to sell Mitra his printer but tells Mitra he'll substitute a $500 boat. Mitra agrees. 
E)  When Ben's new car is delivered, the seats are cloth rather than leather as ordered. 
A)  The buyer and seller agree orally to cancel their contract when neither one has performed his obligations under it. 
B)  Minnie and Mickey agree that Minnie will take less than the amount Mickey owes as full payment of his debt, and Mickey will pay her two days early. 
C)  Twain had contracted to build a model of a proposed building for architects who were to meet with their clients on March 10. The model was destroyed the night of March 9 when a car left the road and crashed into the workshop and destroyed the model. 
D)  Fred no longer wants to honour his contract to sell Mitra his printer but tells Mitra he'll substitute a $500 boat. Mitra agrees. 
E)  When Ben's new car is delivered, the seats are cloth rather than leather as ordered.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A deposit must be returned if no damage has taken place.

Accepted Answer

A) True 
 B)False

Question 9

When a court determines that a breach of contract has taken place and awards damages, what is the purpose of such an award?

Accepted Answer

The purpose is to pr

Question 10

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

Accepted Answer

A) True 
 B)False

Question 11

In 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 was 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.

Which of the following statements is correct with respect to breach of contract?

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that

Failure to make an installment payment will often trigger an acceleration clause, which makes the entire outstanding debt due and payable immediately.

Which of the following would most likely result in the court finding the contract had been discharged by frustration?

Which one of the following does not terminate a contract?

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

A deposit must be returned if no damage has taken place.

When a court determines that a breach of contract has taken place and awards damages, what is the purpose of such an award?

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

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

Which of the following statements is correct with respect to breach of contract?

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that

Failure to make an installment payment will often trigger an acceleration clause, which makes the entire outstanding debt due and payable immediately.

Which of the following would most likely result in the court finding the contract had been discharged by frustration?

Which one of the following does not terminate a contract?

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

A deposit must be returned if no damage has taken place.

When a court determines that a breach of contract has taken place and awards damages, what is the purpose of such an award?

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

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