Exam 9: The End of the Contractual Relationship

Gill,a wholesale fish seller,agreed to provide Blanchet's Restaurant with 1000 pounds 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 that much,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 were 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?

An injunction involves a court order to do something (to perform the contract),whereas specific performance usually involves an order to refrain from some offensive conduct.

If a victim of an anticipatory breach continues to insist on performance,what danger does he face?

What is the usual impact of an exemption clause in the event of fundamental breach?

In rare circumstances,the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

What does it mean when a party has "tendered performance"?

Discuss the equitable remedies that were developed in contract law and why they were necessary.

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

The claim of frustration is not available in which of the following circumstances?

Failure to make an instalment payment will often trigger an acceleration clause,which makes the entire outstanding debt due and payable immediately.

Joe owed Sam $5000.After the money was due,he approached Sam and told him that he couldn't pay the money,but if Sam was willing to take $3000 that day in full satisfaction of the debt,he could come up with that money.Sam agreed to take the money and,in fact,took the money.Once he had it in his possession,he then turned around and sued for the other $2000.Explain the likely outcome.

Which of the following is false with regard to remedies for breach of contract?

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

Joe was a student at the local college and agreed to paint Harry's house during the Easter break.A month before that time,he informed Harry that he had an opportunity to go to Hawaii and that he wouldn't be painting the house.What can Harry do in these circumstances?

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?

A student bought an iPod for the stated purpose of listening to his recorded notes while he took his daily run.The contract he signed with the seller included a clause excusing the seller from liability for the breach of "any term of the contract,whether a breach of condition or warranty whether express,implied,statutory or otherwise." After only 30 days,the iPod failed to function at all.It was totally useless for the student's purpose,so he took it back to the seller.The seller refused to take it back and pointed out the exemption clause in the signed contract.Based on these facts,which of the following could be true?

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

The courts are extremely reluctant to grant any compensation for the breaching party's partial performance of the agreement,unless the contractual obligations have been substantially performed.

Where a developer signs up agreements to buy several adjacent properties,and one property owner refuses to go through with the deal,it would be appropriate to obtain a court order for _____________.

Which one of the following is false with regard to exemption (exclusion)clauses?