Question 1

It should make it easier to obtain an injunction if the terms of the contract set out an injunction as an appropriate remedy in the case of breach.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Jenny went to the store and asked to see an AM-FM clock radio with a tape deck.The salesman brought out a clock radio that he said had all of the features that she wanted.After looking at the price tag and little else, Jenny said she would think about it.The salesman said that this was the most popular model sold, that they sold 1000 of them during the World Series alone, that it had the highest rating in Consumer Reports, and that he only had that one left.Jenny bought it.Later, she found out that all of the statements made to her by the salesman were false, including the one that the clock had all of the features she wanted, because it did not have an AM band.Which of the following is true?

Accepted Answer

A) The equitable remedy of rescission is available only if Jenny is able to restore the clock radio to the seller. 
B) Jenny would only have a remedy for breach of contract (namely, the clock radio did not have an AM band) because none of the other statements was about the clock radio itself. 
C) The statements of the salesman are negligent only if the salesman knew they were false. 
D) Jenny could obtain the remedy of rescission only if the statements made to induce her to contract were fraudulent. 
E) Jenny could return this clock radio to the seller only if she could prove undue influence. 
A) The equitable remedy of rescission is available only if Jenny is able to restore the clock radio to the seller. 
B) Jenny would only have a remedy for breach of contract (namely, the clock radio did not have an AM band) because none of the other statements was about the clock radio itself. 
C) The statements of the salesman are negligent only if the salesman knew they were false. 
D) Jenny could obtain the remedy of rescission only if the statements made to induce her to contract were fraudulent. 
E) Jenny could return this clock radio to the seller only if she could prove undue influence. A

Question 4

Indicate the various ways in which the contractual relationship can come to an end.

Accepted Answer

By performing the contractual

Question 5

With regard to the law governing privity of contract and assignment, which of the following is true?

Accepted Answer

A) A statutory assignment is more difficult to enforce than an equitable assignment. 
B) A party to a contract for services can assign both his contractual obligations and his contractual rights. 
C) An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
D) Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract. 
E) Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
A) A statutory assignment is more difficult to enforce than an equitable assignment. 
B) A party to a contract for services can assign both his contractual obligations and his contractual rights. 
C) An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
D) Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract. 
E) Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms, such as substituting one party for another.

Question 6

Which one of the following is true with regard to the ending of a contract by performance?

Accepted Answer

A) Legal tender consists of bills or coins in any amount. 
B) 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. 
C) In law, a certified cheque is the same as cash. 
D) If a person attempts to perform services in accordance with the terms of the contract, and the buyer refuses those services, the person attempting to perform can sue the buyer with no further attempt to perform. 
E) If a warranty is breached, the victim has no further obligation to perform under the contract. 
A) Legal tender consists of bills or coins in any amount. 
B) 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. 
C) In law, a certified cheque is the same as cash. 
D) If a person attempts to perform services in accordance with the terms of the contract, and the buyer refuses those services, the person attempting to perform can sue the buyer with no further attempt to perform. 
E) If a warranty is breached, the victim has no further obligation to perform under the contract.

Question 7

You and your parents were both surprised when Grandmother said the doctor told her to come for weekly checkups, because she didn't seem sick.Nevertheless, you dutifully took her to and from her appointments for a period of about six months.She never talked about these sessions, but loved to go.Now she has come to the family and said that she is sorry that she gave the doctor the oil paintings and sold him the farm.On these facts, which of the following is false?

Accepted Answer

A) A presumption of undue influence doesn't mean the weaker party will automatically get her property back. 
B) If a court held that the property was obtained by undue influence, the contract would be voidable at the option of Grandmother, the weaker person. 
C) It would be easier for Grandmother to argue duress than undue influence. 
D) In a court action, if Grandmother claimed the return of her property on the basis of undue influence, the court would presume undue influence and the doctor would have to prove that the property was freely given. 
E) If Grandmother had gone to her own lawyer for independent advice before conveying her property to the doctor, she would have more difficulty arguing undue influence. 
A) A presumption of undue influence doesn't mean the weaker party will automatically get her property back. 
B) If a court held that the property was obtained by undue influence, the contract would be voidable at the option of Grandmother, the weaker person. 
C) It would be easier for Grandmother to argue duress than undue influence. 
D) In a court action, if Grandmother claimed the return of her property on the basis of undue influence, the court would presume undue influence and the doctor would have to prove that the property was freely given. 
E) If Grandmother had gone to her own lawyer for independent advice before conveying her property to the doctor, she would have more difficulty arguing undue influence.

Question 8

Discuss the various remedies that are available where one of the parties to the contract is a victim of misrepresentation.

Accepted Answer

Students should show how misrepresentati

Question 9

When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?

Accepted Answer

A) The court will find that there is no contract because there is no meeting of the minds. 
B) Non est factum 
C) The most reasonable interpretation of the terms 
D) The equitable remedy of rectification 
E) Caveat emptor 
A) The court will find that there is no contract because there is no meeting of the minds. 
B) Non est factum 
C) The most reasonable interpretation of the terms 
D) The equitable remedy of rectification 
E) Caveat emptor

Question 10

"Joe received a cheque from Sam for work he had done painting Sam's house, and Joe passed that cheque to Harry.Harry took it, not knowing that the work done was defective.Because of the principle that an assignee of contractual rights is in no better position than an assignor, Harry would not be able to demand payment on that cheque from Sam." Discuss the accuracy of this statement.

Accepted Answer

It is incorrect.Negotiable instruments a

Question 11

Mr.Zink hired Bruce Dorne to create a payroll program for his business.Bruce was to be paid $4000 for the program.When Bruce was halfway finished, a creditor to whom he owed $2000 pressed so hard for payment that Bruce assigned him $2000 of the contract price, an amount he felt he had earned already.The creditor, Mr.Pressing, gave written notice that very day to Mr.Zink.On these facts, which of the following is true? (Read each statement separately.)

Accepted Answer

A) If Bruce bungled the assignment and the court determined that nothing was owed to him, Pressing could still get $2000 from Zink. 
B) Pressing is entitled to $2000 from Zink when the contract is completed, if at least that much is owed to Bruce by Zink at that time. 
C) This assignment is a statutory assignment, not an equitable assignment. 
D) This type of assignment is not recognized by the courts because it is an assignment of contractual obligations. 
E) Zink must pay $2000 to Pressing on the day the notice was given, because at that time Bruce had done half of the work on the $4000 contract. 
A) If Bruce bungled the assignment and the court determined that nothing was owed to him, Pressing could still get $2000 from Zink. 
B) Pressing is entitled to $2000 from Zink when the contract is completed, if at least that much is owed to Bruce by Zink at that time. 
C) This assignment is a statutory assignment, not an equitable assignment. 
D) This type of assignment is not recognized by the courts because it is an assignment of contractual obligations. 
E) Zink must pay $2000 to Pressing on the day the notice was given, because at that time Bruce had done half of the work on the $4000 contract.

Question 12

Sam agreed to buy property from Joe to build a store of a certain design.Joe, the vendor, was aware of the design and knew that an easement across the back of the property would prevent such a building being erected, but said nothing.Sam purchased the property, later discovered the easement, and learned that Joe knew about it.He sued for misrepresentation.Discuss the likely outcome.

Accepted Answer

Sam will lose.Joe was under no obligatio

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The victim of anticipatory breach has two options available to him.What are they?

Accepted Answer

He can either ignore the repud

Question 15

Smedlap, a trucker, and Dewdney, a farmer, entered into a contract under which Smedlap agreed to haul all of Dewdney's 2012 pumpkin crop to market in time for Halloween sales.However, the day before Smedlap was to pick up the pumpkins, he called Dewdney and told him that, since he had received such a good offer to buy his truck, he had sold it and therefore was not able to haul Dewdney's pumpkins.There was not enough time for Smedlap to buy another truck, but he was sure that Dewdney could make other arrangements and he hoped that he hadn't unduly inconvenienced him.Unfortunately, Dewdney was not able to make arrangements in time for the Halloween market, and instead he had to sell his crop to a pie-filling canner for much less than he could reasonably have expected at the market.Furthermore, the market owners were so disappointed by Dewdney's failure to deliver that they refused to give him their usual order for Christmas turkeys, in contrast to previous years, when this had generated his major income for the year.He was forced to find another outlet for his turkeys, and again he ended up selling to commercial processors for a substantially lower price.As a result of these two events, Dewdney was unable to keep up with his mortgage payments on the farm and eventually he lost it to the bank in a foreclosure action.Dewdney is now suing Smedlap to recover these losses.Identify the correct statement with respect to the question of whether Smedlap's conduct was a breach of contract.

Accepted Answer

A) This was a breach that consisted of self-induced frustration. 
B) Smedlap simply cancelled the contract, which he was entitled to do as long as it was before performance was due. 
C) This was not a breach because Smedlap did not do it maliciously, and he gave Dewdney what he honestly believed was adequate notice to make other arrangements. 
D) The contract was discharged by frustration. 
E) Smedlap is not liable because it was not his fault that Dewdney was unable to make other suitable arrangements. 
A) This was a breach that consisted of self-induced frustration. 
B) Smedlap simply cancelled the contract, which he was entitled to do as long as it was before performance was due. 
C) This was not a breach because Smedlap did not do it maliciously, and he gave Dewdney what he honestly believed was adequate notice to make other arrangements. 
D) The contract was discharged by frustration. 
E) Smedlap is not liable because it was not his fault that Dewdney was unable to make other suitable arrangements.

Question 16

Misunderstanding occurs when each party has a different understanding of the terms of the agreement, in which case the courts apply a reasonable interpretation of the contract.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Randal embezzled $6000 of his employer's money and then disappeared.The employer's accountant called at Randal's residence and discovered that his wife had a $3500 term deposit.When the accountant threatened to have her husband arrested and imprisoned if she did not agree to sign over the deposit, she assigned the term deposit to the employer to help to defray the loss from the embezzlement.If the wife were later to sue for return of the term deposit, what would be her grounds for avoiding the assignment?

Accepted Answer

A) Mistake of law 
B) Non est factum 
C) Duress 
D) Fraudulent misrepresentation 
E) Undue influence 
A) Mistake of law 
B) Non est factum 
C) Duress 
D) Fraudulent misrepresentation 
E) Undue influence

Question 19

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

Question 20

John and Sam entered into a contract whereby John would sell auto parts from his junkyard to Sam's Auto Repair.However, they ended up in a dispute over the condition of the parts to be sold and could not agree on the meaning of terms used in the sales contract.John was invoicing Sam's Auto Repair for considerably more money than Sam thought appropriate for the used and often seriously damaged parts.When Sam paid less than the invoice amount, they ended up in a legal dispute and asked the court to interpret their contract.Which of the following is false regarding approaches the court might use to interpret the contract terms in dispute?

Accepted Answer

A) If the terms are clear and there is no ambiguity, the court might look at dictionaries for literal meanings of the terms. 
B) If the terms are clear and there is no ambiguity, the court might look at the common usage of the industry for meanings of the terms. 
C) Where there is ambiguity, the court might look at the rest of the contract to try to discern the intention of the parties. 
D) The court will supply missing terms and prices that are necessary for the contract to exist. 
E) Where there is ambiguity, the court might look to other dealings between the parties. 
A) If the terms are clear and there is no ambiguity, the court might look at dictionaries for literal meanings of the terms. 
B) If the terms are clear and there is no ambiguity, the court might look at the common usage of the industry for meanings of the terms. 
C) Where there is ambiguity, the court might look at the rest of the contract to try to discern the intention of the parties. 
D) The court will supply missing terms and prices that are necessary for the contract to exist. 
E) Where there is ambiguity, the court might look to other dealings between the parties.

It should make it easier to obtain an injunction if the terms of the contract set out an injunction as an appropriate remedy in the case of breach.

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

Indicate the various ways in which the contractual relationship can come to an end.

With regard to the law governing privity of contract and assignment, which of the following is true?

Which one of the following is true with regard to the ending of a contract by performance?

Discuss the various remedies that are available where one of the parties to the contract is a victim of misrepresentation.

When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?

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

The victim of anticipatory breach has two options available to him.What are they?

Misunderstanding occurs when each party has a different understanding of the terms of the agreement, in which case the courts apply a reasonable interpretation of the contract.

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

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

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Exam 4: Enforcing Contractual Obligations

It should make it easier to obtain an injunction if the terms of the contract set out an injunction as an appropriate remedy in the case of breach.

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

Indicate the various ways in which the contractual relationship can come to an end.

With regard to the law governing privity of contract and assignment, which of the following is true?

Which one of the following is true with regard to the ending of a contract by performance?

Discuss the various remedies that are available where one of the parties to the contract is a victim of misrepresentation.

When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?

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

The victim of anticipatory breach has two options available to him.What are they?

Misunderstanding occurs when each party has a different understanding of the terms of the agreement, in which case the courts apply a reasonable interpretation of the contract.

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

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters