Exam 4: Enforcing Contractual Obligations

Mr.and Mrs.H were induced to sign a mortgage in favour of M Co.Ltd.by Johnston, a man living with their daughter.Johnston led them to believe that the document was an unimportant amendment to an existing mortgage, when in reality it was a second substantial mortgage of their home.Neither read the document nor questioned it.When the payments were in arrears, the mortgagee took an action for foreclosure (to take Mr.and Mrs.H's home).Which of the following is correct with respect to the legal position of the parties?

Explain what is meant by the term remote with respect to damages awarded in contract disputes.

Mr.Ho talked with Mr.Tarr, who ran a business called Roscali Roofing.Ho agreed to pay Tarr $250 for the repair of his roof.In time, Gene Fix, Tarr's employee, came to Mr.Ho's and worked on the roof.Fix used the wrong material in the repairs, which made all his effort worthless; during the next rain, the roof leaked as before.Which of the following is true?

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Explain the impact of the principle of privity on contracts.

Gill, a wholesale fish seller, agreed to provide Blanchet's Restaurant with 1000 kilograms of fresh salmon per week throughout the months of July, August, and September.Things went as planned for July and August.However, Gill was unable to meet the requirements of the contract for the first two weeks of September because his boats simply did not catch enough, although other companies did better and the fish were available for Gill to purchase, but at a higher price than what Blanchet was paying him.Rather than sell at a loss, Gill simply did not supply during that two-week period.At the end of that period, the Federal Fisheries Department shut down the fishery altogether because of the depletion of fish.After that, no more fresh salmon was available at all.Blanchet sued Gill for breach of contract with respect to his failure to deliver any fresh salmon in September.Which one of the following statements accurately sets out the legal situation here?

Discuss how and why promissory estoppel might come into play when a contract is being discharged or changed by agreement.

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

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Distinguish between innocent and fraudulent misrepresentation, indicating why the distinction is important.

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

Alan entered into a written contract for the purchase of a house owned by Joe.But as the time to move approached, Alan discovered that Joe was refusing to move out and refusing to transfer the property.Apparently a dissatisfied customer had driven through the showroom window of Joe's new car dealership causing him considerable expense.Joe could no longer afford to purchase the new luxury home in Langley to which he had intended to move.Which of the following is the appropriate remedy in these circumstances for Alan, who really wants the house?

The victim of innocent misrepresentation can sue for damages but cannot ask for rescission.

In order to succeed in suing for a misrepresentation, that misrepresentation must have been in writing.

Mrs.Sharp, the owner of a restaurant, induced the Morissons to buy the business by a misrepresentation; the invoices made her costs appear less than they actually were, and thus her profits more than they actually were.On these facts, which of the following is false?

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

A breach of warranty allows a victim to sue for damages, but he or she must go through with his or her obligations under the contract.

With respect to breached contract damages awarded, discuss the meaning of duty to mitigate.

Explain what is meant by a novation.