Question 1

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 the 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 today, March 10. The model was destroyed last night 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'd substitute a $500 boat. Mitra agrees. 
E)  When Ben's new car is delivered, the seats are vinyl rather than cloth 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 the 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 today, March 10. The model was destroyed last night 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'd substitute a $500 boat. Mitra agrees. 
E)  When Ben's new car is delivered, the seats are vinyl rather than cloth as ordered.

Question 2

Mikael recently started a home-based business selling custom fishing lures.He decided that he could make a lot more money selling his homemade lures on the internet.Mikael is not the least bit technologically inclined,but he knows that his next-door neighbour,Perm,does web design on the side.He decides to hire her to create a website for his new venture.Perm has him sign an agreement that includes an exemption clause that limits her liability in cases of negligence.In the course of designing the website,Perm becomes annoyed at Mikael because his dog keeps digging up her rose bushes.Rather than confront Mikael directly,Perm deliberately puts the wrong pricing information on Mikael's website to get him back.If Mikael suffered damages as a result and wanted to sue Perm,what would the likely result be?

Accepted Answer

A)  The exemption clause would protect Perm because of the principle of "freedom to contract." 
B)  The exemption clause would be severed as being an illegal restraint of trade. 
C)  Perm's actions were outside the scope of the contract, so Mikael would have no claim in law. 
D)  Perm only did freelance web design; as a non-professional she would not face liability. 
E)  Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause. 
A)  The exemption clause would protect Perm because of the principle of "freedom to contract." 
B)  The exemption clause would be severed as being an illegal restraint of trade. 
C)  Perm's actions were outside the scope of the contract, so Mikael would have no claim in law. 
D)  Perm only did freelance web design; as a non-professional she would not face liability. 
E)  Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause.

Question 3

An injunction is designed to punish someone for breaching a contract.

Accepted Answer

A) True 
 B)False

Question 4

Explain how a fundamental breach affects the application of an exemption clause.

Accepted Answer

A fundamental breach is a breach that's

Question 5

On the theory that all land is unique,the courts in the past have been willing to award ____________ whenever the parties to the purchase of land breached their contract.

Accepted Answer

A)  damages 
B)  equitable remedies 
C)  quantum meruit 
D)  specific performance 
E)  an injunction 
A)  damages 
B)  equitable remedies 
C)  quantum meruit 
D)  specific performance 
E)  an injunction

Question 6

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

Accepted Answer

A) True 
 B)False

Question 7

"In contract law,warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product,if it's defective." Discuss the accuracy of this statement.

Accepted Answer

The statement is inaccurate.A warranty i

Question 8

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered.Indicate two limitations on this principle.

Accepted Answer

Remoteness,where the contracting party i

Question 9

When faced with an anticipatory breach,what is the risk if the innocent party insists on performance?

Accepted Answer

That party is bound by the cho

Question 10

A breach of warranty allows victims to sue for damages,but they must go through with their obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 11

When a person informs you before performance is due that he is not going to perform the contract,you don't have to wait to see if he does perform; you can make other arrangements and sue right away.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is false with regard to ending contracts and remedies?

Accepted Answer

A)  If Lori incurred costs in preparing to perform a contract that is ended by frustration, the court can allow Lori to keep some of the deposit paid by the other party to help cover those costs. 
B)  If a person ignores a court order-e.g., an injunction, he could be cited for contempt of court. 
C)  A breach of condition allows the party who suffers the breach to terminate the contract. 
D)  The equitable remedy of specific performance is available in those situations where monetary compensation would not be adequate. 
E)  The term "condition precedent" refers to a clause in a contract that brings the contractual obligations of the parties to an end upon the happening of some specific event. 
A)  If Lori incurred costs in preparing to perform a contract that is ended by frustration, the court can allow Lori to keep some of the deposit paid by the other party to help cover those costs. 
B)  If a person ignores a court order-e.g., an injunction, he could be cited for contempt of court. 
C)  A breach of condition allows the party who suffers the breach to terminate the contract. 
D)  The equitable remedy of specific performance is available in those situations where monetary compensation would not be adequate. 
E)  The term "condition precedent" refers to a clause in a contract that brings the contractual obligations of the parties to an end upon the happening of some specific event.

Question 13

Joe agreed to sell Sam his Model T Ford automobile,and the day before delivery,he took it out for one last drive.Through his own fault,got into an accident in which the car was destroyed.Because it was impossible to go through with the terms of the contract,he claimed that it was frustrated.Discuss the legal position of the parties.

Accepted Answer

This is not frustrat

Question 14

What is the result of a repudiation?

Accepted Answer

If the victim chooses to perfo

Question 15

On February 1,Smyth contracted to buy Dupont's van.They had agreed that Smyth would pay the price of $7000 on March 1 and take delivery and the risk on that date.Smyth then contracted to sell the van in Smithers on March 5 for $7600.On February 22,Dupont called Smyth and said he wasn't going to sell it; he decided to keep it.Based on these facts,which of the following is false?

Accepted Answer

A)  Dupont's call is an express repudiation of the contract and is an anticipatory breach. 
B)  Smyth could agree to call off the contract; neither of them had yet performed. 
C)  Smyth could refuse to acknowledge a breach, but that would result in the possibility that the contract could be breached later. 
D)  Smyth could acknowledge that Dupont was in breach but has to wait until after the performance date to sue him for breach of contract. 
E)  Smyth could refuse to acknowledge a breach and press Dupont to complete the contact. 
A)  Dupont's call is an express repudiation of the contract and is an anticipatory breach. 
B)  Smyth could agree to call off the contract; neither of them had yet performed. 
C)  Smyth could refuse to acknowledge a breach, but that would result in the possibility that the contract could be breached later. 
D)  Smyth could acknowledge that Dupont was in breach but has to wait until after the performance date to sue him for breach of contract. 
E)  Smyth could refuse to acknowledge a breach and press Dupont to complete the contact.

Question 16

Jones entered into a contract to purchase a 1957 Edsel automobile from Smith for $2000.Unknown to Smith,Jones had an opportunity to resell that car for $5000 to Brown,who wanted to use it as a prop in a movie being shot in town.Before the car was delivered and payment made,it was destroyed by fire,when one of Smith's employees carelessly spilled a can of gasoline in the garage where the car was kept.If the court found that the normal market value for such a vehicle was only $3000,which of the following statements is correct with respect to the appropriate remedy that should be awarded by the court for such a breach of contract?

Accepted Answer

A)  Because of the uniqueness of the vehicle, the court should award specific performance. 
B)  In these circumstances, the court should award $5000, representing the lost profits. 
C)  In these circumstances, there should be no remedy since the contract has been frustrated. 
D)  The court should award only $1000, the difference between the market price and the purchase price. 
E)  The court could award $3000. 
A)  Because of the uniqueness of the vehicle, the court should award specific performance. 
B)  In these circumstances, the court should award $5000, representing the lost profits. 
C)  In these circumstances, there should be no remedy since the contract has been frustrated. 
D)  The court should award only $1000, the difference between the market price and the purchase price. 
E)  The court could award $3000.

Question 17

Harry agreed to make a new violin for Ted at a particularly attractive price.Before he finished crafting it,however,an opportunity arose to work as a salesperson for "Joe's Fine Cars." Since it was clear that he could never make a living as a violin maker,he took the job and refused to finish the violin for Ted.Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  specific performance 
B)  damages 
C)  injunction 
D)  no remedy 
E)  rescission 
A)  specific performance 
B)  damages 
C)  injunction 
D)  no remedy 
E)  rescission

Question 18

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half,he will not be successful in claiming compensation for what he has done.

Accepted Answer

A) True 
 B)False

Question 19

Distinguish between a down payment and a deposit.

Accepted Answer

A down payment is merely the first payme

Question 20

The principle of substantial performance can best be described as which of the following?

Accepted Answer

A)  All or most of contractual obligations are fulfilled. 
B)  A major term of the contract is mostly fulfilled. 
C)  Minor terms of the contract are yet to be fulfilled. 
D)  Minor terms of the contract are disregarded. 
E)  Only exact compliance with the contract will qualify as performance. 
A)  All or most of contractual obligations are fulfilled. 
B)  A major term of the contract is mostly fulfilled. 
C)  Minor terms of the contract are yet to be fulfilled. 
D)  Minor terms of the contract are disregarded. 
E)  Only exact compliance with the contract will qualify as performance.

Which one of the following does not terminate a contract?

An injunction is designed to punish someone for breaching a contract.

Explain how a fundamental breach affects the application of an exemption clause.

On the theory that all land is unique,the courts in the past have been willing to award ____________ whenever the parties to the purchase of land breached their contract.

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

"In contract law,warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product,if it's defective." Discuss the accuracy of this statement.

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered.Indicate two limitations on this principle.

When faced with an anticipatory breach,what is the risk if the innocent party insists on performance?

A breach of warranty allows victims to sue for damages,but they must go through with their obligations under the contract.

When a person informs you before performance is due that he is not going to perform the contract,you don't have to wait to see if he does perform; you can make other arrangements and sue right away.

Which of the following is false with regard to ending contracts and remedies?

What is the result of a repudiation?

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half,he will not be successful in claiming compensation for what he has done.

Distinguish between a down payment and a deposit.

The principle of substantial performance can best be described as which of the following?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 9: The End of the Contractual Relationship

Which one of the following does not terminate a contract?

An injunction is designed to punish someone for breaching a contract.

Explain how a fundamental breach affects the application of an exemption clause.

On the theory that all land is unique,the courts in the past have been willing to award ____________ whenever the parties to the purchase of land breached their contract.

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

"In contract law,warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product,if it's defective." Discuss the accuracy of this statement.

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered.Indicate two limitations on this principle.

When faced with an anticipatory breach,what is the risk if the innocent party insists on performance?

A breach of warranty allows victims to sue for damages,but they must go through with their obligations under the contract.

When a person informs you before performance is due that he is not going to perform the contract,you don't have to wait to see if he does perform; you can make other arrangements and sue right away.

Which of the following is false with regard to ending contracts and remedies?

What is the result of a repudiation?

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half,he will not be successful in claiming compensation for what he has done.

Distinguish between a down payment and a deposit.

The principle of substantial performance can best be described as which of the following?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters