Question 1

Which of the following statements is true with respect to the law of damages?

Accepted Answer

A) Damages are awarded for a breach of a condition but not for a breach of warranty. 
B) If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach. 
C) Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do. 
D) Damages are intended to punish the wrongdoer for breaching the contract. 
E) A deposit is an amount of money a party to a contract agrees to forfeit if he or she breaches the contract. 
A) Damages are awarded for a breach of a condition but not for a breach of warranty. 
B) If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach. 
C) Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do. 
D) Damages are intended to punish the wrongdoer for breaching the contract. 
E) A deposit is an amount of money a party to a contract agrees to forfeit if he or she breaches the contract.

Question 2

Which one of the following mistakes voids a contract?

Accepted Answer

A) Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. 
B) Two parties contracted for the sale and purchase of a painting for the price of $800.When the contract was written up, the price was incorrectly stated as $900. 
C) Sally and Mary had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Sally. 
D) When Mr.and Mrs.Houston put their property up for sale, Sam, without speaking to the Houstons or to their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat.After his offer was accepted, he learned it was not suitable for wheat. 
E) Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient. 
A) Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. 
B) Two parties contracted for the sale and purchase of a painting for the price of $800.When the contract was written up, the price was incorrectly stated as $900. 
C) Sally and Mary had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Sally. 
D) When Mr.and Mrs.Houston put their property up for sale, Sam, without speaking to the Houstons or to their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat.After his offer was accepted, he learned it was not suitable for wheat. 
E) Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient.

Question 3

Joe agreed to paint Sam's house for $1000.Joe then assigned the $1000 claim to Harry, who served notice on Sam about the assignment.When it came time for payment, Harry was informed by Sam that he would not pay because the paint was peeling off his house.Harry said that that was nothing to do with him and demanded payment.Explain the legal position of the parties.

Accepted Answer

An assignee is in no better position tha

Question 4

For a misrepresentation to be actionable, it must become a term of the contract.

Accepted Answer

A) True 
 B)False

Question 5

Often, costs can be considerably reduced by including provisions in a contract for all disputes to be handled through mediation and arbitration.

Accepted Answer

A) True 
 B)False

Question 6

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar, her employee.After the ad ran, it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.On these facts, which of the following is true?

Accepted Answer

A) Only Peppar is liable since he made the mistake. 
B) Tong can sue either Hocaloski or Peppar, her employee, for breach of contract, but not both of them. 
C) If Hocaloski did not pay Peppar, Peppar could sue Tong for his pay because Peppar did do work for Tong. 
D) For breach of contract, Tong could successfully sue only Hocaloski. 
E) Tong can sue both Hocaloski and Peppar for breach of contract, since they are both connected with the job. 
A) Only Peppar is liable since he made the mistake. 
B) Tong can sue either Hocaloski or Peppar, her employee, for breach of contract, but not both of them. 
C) If Hocaloski did not pay Peppar, Peppar could sue Tong for his pay because Peppar did do work for Tong. 
D) For breach of contract, Tong could successfully sue only Hocaloski. 
E) Tong can sue both Hocaloski and Peppar for breach of contract, since they are both connected with the job.

Question 7

When one party is responsible for an act that frustrates a contract, it is treated as a breach.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Accepted Answer

A) The defendant has a justifiable defence of non est factum. 
B) A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement. 
C) The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question. 
D) The contract is one requiring "utmost good faith." 
E) Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered. 
A) The defendant has a justifiable defence of non est factum. 
B) A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement. 
C) The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question. 
D) The contract is one requiring "utmost good faith." 
E) Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered.

Question 9

The threat of violence makes a contract voidable.

Accepted Answer

A) True 
 B)False

Question 10

Len was behind in his work at the office.He decided to go in for a few hours on Sunday to catch up.He asked a secretary to come in for four hours.He turned on his office TV.Just then, his secretary came in and asked him to sign four letters that she said concerned general office matters.He carelessly signed them without taking his eyes off the TV screen.One of the "letters" was, in fact, a cheque for $500 payable to the secretary.The secretary cashed the cheque at her bank, and when her bank presented the cheque for payment, Len instructed his bank not to honour it.He said that he had been tricked and that his signing it was a big mistake.On these facts, which of the following is true?

Accepted Answer

A) Undue influence would be Len's best defence on these facts. 
B) Because Len did not know what he was signing, he cannot be held liable. 
C) Len could avoid his obligation on the cheque on the basis of duress. 
D) Len could avoid his obligation on the cheque on the basis of unconscionability. 
E) Len's carelessness in failing to read what he was signing will likely defeat any claim of non est factum. 
A) Undue influence would be Len's best defence on these facts. 
B) Because Len did not know what he was signing, he cannot be held liable. 
C) Len could avoid his obligation on the cheque on the basis of duress. 
D) Len could avoid his obligation on the cheque on the basis of unconscionability. 
E) Len's carelessness in failing to read what he was signing will likely defeat any claim of non est factum.

Question 11

When Gary went into Computer Heaven, Ltd.to get a better manual for the program he was trying to master, he was caught by a demonstration of a computer created by Next, Mr.Job's new firm.He was fascinated by its performance.The salesman, Ross, told Gary that he should have this machine; that "it was the latest computer; no other will ever be better"; that "UBC, Simon Fraser, and BCIT just ordered over 1000 of them"; that he only had "a few left and the demand is so great it will take almost a year for the next shipment to arrive." When Gary said he needed a computer with at least 1000K memory, Ross said this model had 2000K.Gary was persuaded and contracted for the computer.Later, Gary learned that every statement made by Ross was untrue, including the one about the memory capacity; the model had only 800K.On these facts, which of the following is true?

Accepted Answer

A) Only if Ross knew that all of the statements he made were false could Gary get a remedy. 
B) Statements that induced Gary to contract, but that are not the terms of the contract, are not significant enough for the courts to award a remedy by case law or by statute. 
C) The exaggerated claim "it was the latest computer; no other will ever be better" is enough, according to the case law, to allow Gary to get out of the contract. 
D) Gary could be awarded the equitable remedy of rescission even if Ross honestly believed everything he said was true. 
E) Such misrepresentations could result in contractual remedies, legal or equitable, but not in tort remedies. 
A) Only if Ross knew that all of the statements he made were false could Gary get a remedy. 
B) Statements that induced Gary to contract, but that are not the terms of the contract, are not significant enough for the courts to award a remedy by case law or by statute. 
C) The exaggerated claim "it was the latest computer; no other will ever be better" is enough, according to the case law, to allow Gary to get out of the contract. 
D) Gary could be awarded the equitable remedy of rescission even if Ross honestly believed everything he said was true. 
E) Such misrepresentations could result in contractual remedies, legal or equitable, but not in tort remedies.

Question 12

What is the significance of an assignment qualifying as a statutory assignment?

Accepted Answer

The assignee can sue the origi

Question 13

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

Accepted Answer

A) Carson and Leno had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Leno. 
B) Barry and Mary contracted for the sale and purchase of a boat for the price of $1200.When the contract was written up, the price was incorrectly stated as $1700. 
C) Although the seller said nothing to the buyer about the characteristics of the answering machine, the buyer bought it, thinking it would tell him the date and time of the call.Later, he learned that it did not perform that function. 
D) Sarah bought three rolls of wallpaper, but found she had made a mistake; two would have been sufficient. 
E) Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract the ship had sunk and the fish had been lost. 
A) Carson and Leno had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Leno. 
B) Barry and Mary contracted for the sale and purchase of a boat for the price of $1200.When the contract was written up, the price was incorrectly stated as $1700. 
C) Although the seller said nothing to the buyer about the characteristics of the answering machine, the buyer bought it, thinking it would tell him the date and time of the call.Later, he learned that it did not perform that function. 
D) Sarah bought three rolls of wallpaper, but found she had made a mistake; two would have been sufficient. 
E) Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract the ship had sunk and the fish had been lost.

Question 14

A bill of exchange is an order by one person to another to pay money to a third.

Accepted Answer

A) True 
 B)False

Question 15

Indicate any limitations on the availability of specific performance and injunctions.

Accepted Answer

These are equitable remedies, and theref

Question 16

The purpose of damages in contract law is to put the victim in the position he or she would have been in had the contract been properly performed.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?

Accepted Answer

A) A man who contracted for an insurance policy did not state on the application form that he had been treated for cancer.He died from the cancer two months later. 
B) The seller concealed the broken drawer of the desk from the buyer.He would not be able to see it until he got it home. 
C) The seller persuaded the buyer to buy the car by misrepresenting it as having just been serviced and passing the air care test.Neither had been done, but the seller honestly believed that both had been done. 
D) The buyer was persuaded by the seller to buy the car by a misrepresentation that it had the fewest repairs of any car of its class.After the buyer learned the truth, he kept the car for three weeks to get some benefit from it before taking it back. 
E) None of the above 
A) A man who contracted for an insurance policy did not state on the application form that he had been treated for cancer.He died from the cancer two months later. 
B) The seller concealed the broken drawer of the desk from the buyer.He would not be able to see it until he got it home. 
C) The seller persuaded the buyer to buy the car by misrepresenting it as having just been serviced and passing the air care test.Neither had been done, but the seller honestly believed that both had been done. 
D) The buyer was persuaded by the seller to buy the car by a misrepresentation that it had the fewest repairs of any car of its class.After the buyer learned the truth, he kept the car for three weeks to get some benefit from it before taking it back. 
E) None of the above

Question 18

Mary has a little scam most everywhere she goes; she sells by saying anything.Her buyers just have woes.Which of the following is true with regard to misrepresentation?

Accepted Answer

A) In some types of misrepresentation there are no remedies available. 
B) If Mary induces the buyer to buy by making a misrepresentation that she honestly thought was true, the buyer has no remedy in law or in equity. 
C) For fraudulent misrepresentation, the buyer can be granted only the equitable remedy of rescission. 
D) There are several remedies available in case law for an exaggerated claim made by Mary. 
E) A misrepresentation can be made about a term of a contract and result in an award of rescission and/or damages. 
A) In some types of misrepresentation there are no remedies available. 
B) If Mary induces the buyer to buy by making a misrepresentation that she honestly thought was true, the buyer has no remedy in law or in equity. 
C) For fraudulent misrepresentation, the buyer can be granted only the equitable remedy of rescission. 
D) There are several remedies available in case law for an exaggerated claim made by Mary. 
E) A misrepresentation can be made about a term of a contract and result in an award of rescission and/or damages.

Question 19

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

Accepted Answer

A) If a person properly tenders performance of a service that is rejected by the other party, he is required to try again and again. 
B) If one party to the contract has paid for a service, but now the other party doesn't want to perform, the contract is ended by agreement as long as both parties agree to call it off. 
C) A person has legally tendered performance if he pays a $500 debt in 25-cent coins. 
D) A contract can be ended by breach if there was either a breach of condition or a breach of warranty. 
E) A contract ends by agreement when the parties include in the contract a "condition subsequent" (i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place). 
A) If a person properly tenders performance of a service that is rejected by the other party, he is required to try again and again. 
B) If one party to the contract has paid for a service, but now the other party doesn't want to perform, the contract is ended by agreement as long as both parties agree to call it off. 
C) A person has legally tendered performance if he pays a $500 debt in 25-cent coins. 
D) A contract can be ended by breach if there was either a breach of condition or a breach of warranty. 
E) A contract ends by agreement when the parties include in the contract a "condition subsequent" (i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place).

Question 20

A person who breaches a contract is responsible for all loss that flows from the breach, no matter how unforeseeable.

Accepted Answer

A) True 
 B)False

Which of the following statements is true with respect to the law of damages?

Which one of the following mistakes voids a contract?

For a misrepresentation to be actionable, it must become a term of the contract.

Often, costs can be considerably reduced by including provisions in a contract for all disputes to be handled through mediation and arbitration.

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar, her employee.After the ad ran, it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.On these facts, which of the following is true?

When one party is responsible for an act that frustrates a contract, it is treated as a breach.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

The threat of violence makes a contract voidable.

What is the significance of an assignment qualifying as a statutory assignment?

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

A bill of exchange is an order by one person to another to pay money to a third.

Indicate any limitations on the availability of specific performance and injunctions.

The purpose of damages in contract law is to put the victim in the position he or she would have been in had the contract been properly performed.

Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?

Mary has a little scam most everywhere she goes; she sells by saying anything.Her buyers just have woes.Which of the following is true with regard to misrepresentation?

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

A person who breaches a contract is responsible for all loss that flows from the breach, no matter how unforeseeable.

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Exam 4: Enforcing Contractual Obligations

Which of the following statements is true with respect to the law of damages?

Which one of the following mistakes voids a contract?

For a misrepresentation to be actionable, it must become a term of the contract.

Often, costs can be considerably reduced by including provisions in a contract for all disputes to be handled through mediation and arbitration.

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar, her employee.After the ad ran, it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.On these facts, which of the following is true?

When one party is responsible for an act that frustrates a contract, it is treated as a breach.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

The threat of violence makes a contract voidable.

What is the significance of an assignment qualifying as a statutory assignment?

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

A bill of exchange is an order by one person to another to pay money to a third.

Indicate any limitations on the availability of specific performance and injunctions.

The purpose of damages in contract law is to put the victim in the position he or she would have been in had the contract been properly performed.

Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?

Mary has a little scam most everywhere she goes; she sells by saying anything.Her buyers just have woes.Which of the following is true with regard to misrepresentation?

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

A person who breaches a contract is responsible for all loss that flows from the breach, no matter how unforeseeable.

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