Exam 11: Discharge and Breach

Identify a situation in which a party is entitled to have a contract discharged on the basis of performance,even though that performance constitutes a breach of the contract.

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Question 1

Correct Answer:

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The question refers to the idea of substantial performance.Substantial performance occurs when a party provides most,but not all,of what it was expected to provide.The shortfall may be a defect in performance (as when a fence is painted one shade of white,when a slightly different shade was actually expected under the agreement)or a lack of performance (as when a home builder completes almost all of the structure,but fails to hang a few doors on their hinges).The contract will be discharged on the basis of that performance,even if the recipient of the substantial performance would prefer to insist upon complete performance.However,the innocent party is also entitled to damages for any loss that it suffers as a result of the breach.

Identify two policy reasons why contractual rights may become unenforceable under a statute of limitation.

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Question 2

Correct Answer:

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First,after a considerable lapse of time,evidence is apt to be lost and witnesses' memories are apt to falter.Consequently,the courts do not want to deal with stale claims.Second,even if reliable evidence is available,a party should,at some point,be free of the fear of liability.

The existence of intermediate terms is best explained by the fact that

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Question 3

Correct Answer:

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Which of the following statements is TRUE with respect to various uses of the word "condition" as that word was used in Chapter 11?

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Question 4

Kate and Ben entered into a contract.She promised to transfer 1000 shares in XYZ Corp to him and he promised to personally draft architectural plans to certain specifications for her.Kate transferred the shares to Ben as promised,but he later discovered that he simply lacked the ability to uphold his end of the bargain.Which of the following statements is TRUE?

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Question 5

Zinedine entered into a contract with Sporting Press Inc to write an instructional book about soccer.Under the terms of that agreement,he was required to deliver the manuscript of the book to the company by December 31.On October 1,however,Zinedine telephoned Sporting Press and explained to the editor that,due to other commitments,he would not be able to perform his obligations on schedule.Which of the following statements is TRUE?

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Question 6

Gretchen,who lived in Calgary,entered into a contract with Matt,who lives in Edmonton.He paid $2500 to her at the outset and she promised that she would edit a book that he was in the process of writing.After completing slightly more than half of the job,however,Gretchen received an offer to act in a play on Broadway.Since acting had always been her dream,she pleaded with Matt to let her go to New York without finishing her project with him.She also pleaded with him to retain the $2500 that she had received from him because she needed a great deal of money to make the move.Since he was fond of Gretchen,Matt agreed.She then sold almost all of her belongings,including her computer,and moved to New York.A week later,however,Matt changed his mind when he learned that Gretchen was acting in Cats,a Broadway production that he disliked very much.He therefore now insists that she must fulfill the rest of her contractual obligations.Is he correct? Explain your answer.

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Question 7

Thelonius agreed to purchase an antique piano from Ruby.He was required to pay the purchase price of $100 000 by cheque on June 1,and she was required to deliver the instrument on June 15.On June 1,Thelonius appeared at Ruby's place of business with a cheque for $100 000.However,because she was having second thoughts about actually delivering the piano to Thelonius,Ruby refused to accept his cheque.Explain the consequences of that refusal in terms of Thelonius's obligation to make payment.

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Question 8

Casey purchased a 12-month cable television package from CanVid Inc.Under the terms of that contract,Casey received an option to terminate the agreement immediately if he found another cable provider who offered a better price.Three months later,Casey discovered that Videotech Ltd offered the same cable package at a price that was 10 percent less than CanVid's.Casey's contract with CanVid therefore is automatically terminated.

(True/False)

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Question 9

Because consideration is not received in return,a waiver of contractual rights is effective only if it is placed under seal.

(True/False)

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Question 10

The phrase "innominate term" is defined as a term that

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Question 11

Describe the process of novation.Explain whether or not the process requires consideration.If so,explain how consideration is provided.

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Question 12

Hector agreed to apply three coats of paint to the exterior of Ruth's house.Although he only applied two,the evidence indicates that a third coat was really unnecessary.Hector nevertheless has breached the contract.

(True/False)

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Question 13

Jerry is interested in purchasing Tom's vinyl set.As Tom is drafting the contract,he decides that he does not want to sell the entire set.Which discharge of agreement option should be used to allow this?

(Multiple Choice)

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Question 14

Which of the following statements is TRUE with respect to the contractual concept of deviation that applies when goods are shipped?

(Multiple Choice)

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Question 15

It is necessary to consider all of the circumstances of a case before determining whether or not an innocent party is entitled to discharge a contract on the basis of a breach of warranty.

(True/False)

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Question 16

Wilf agreed to purchase a business from Celine.The parties' contract stated that the deal was to close on June 1,when Wilf would pay $250 000 to Celine and she would transfer the appropriate documents to him.The parties' contract also said: "This sale is conditional upon Wilf's ability to arrange suitable financing from a lending institution." On June 1,Celine called for payment of the purchase price,but Wilf explained that he had not been able to receive financing.Which of the following statements is most likely TRUE?

(Multiple Choice)

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Question 17

Which of the following statements is TRUE?

(Multiple Choice)

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Question 18

Birinder contractually promised to sell 10 000 tons of steel to Maria.Because he honestly believed that he had a total of 25 000 tons of steel in stock,he sold 15 000 tons of steel to Boris under a separate contract.After doing so,however,he discovered that he originally had only 20 000 tons of steel in stock.Because he has only 5000 tons of steel remaining,and because he had acted honestly throughout,his contract with Maria is discharged on the basis of frustration.

(True/False)

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Question 19

Madeleine entered into a contract with Blue Water Inc.That contract required the company to install a swimming pool at a price of $15 000,and to then landscape the rest of Madeleine's backyard at a cost of $3000.The parties' transaction has now been brought into court.The judge has applied the entire contract doctrine.This means that

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Question 20

Showing 1 - 20 of 78

Identify a situation in which a party is entitled to have a contract discharged on the basis of performance,even though that performance constitutes a breach of the contract.

Identify two policy reasons why contractual rights may become unenforceable under a statute of limitation.

The existence of intermediate terms is best explained by the fact that

Which of the following statements is TRUE with respect to various uses of the word "condition" as that word was used in Chapter 11?

Because consideration is not received in return,a waiver of contractual rights is effective only if it is placed under seal.

The phrase "innominate term" is defined as a term that

Describe the process of novation.Explain whether or not the process requires consideration.If so,explain how consideration is provided.

Hector agreed to apply three coats of paint to the exterior of Ruth's house.Although he only applied two,the evidence indicates that a third coat was really unnecessary.Hector nevertheless has breached the contract.

Jerry is interested in purchasing Tom's vinyl set.As Tom is drafting the contract,he decides that he does not want to sell the entire set.Which discharge of agreement option should be used to allow this?

Which of the following statements is TRUE with respect to the contractual concept of deviation that applies when goods are shipped?

It is necessary to consider all of the circumstances of a case before determining whether or not an innocent party is entitled to discharge a contract on the basis of a breach of warranty.

Which of the following statements is TRUE?

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Contractual Remedies

Special Contracts: Sale of Goods

Special Contracts: Negotiable Instruments

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

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