Question 1

Tufts and McDougal were having an argument about the law regarding performance of a contract.Which one of the following statements of theirs is correct?

Accepted Answer

A)  If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic has to take them. 
B)  If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said he wouldn't take a cheque. 
C)  If Jed shows up with cash for the mechanic on the day and at the place designated in the contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him. 
D)  If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again. 
E)  If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor seeks her out for payment. 
A)  If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic has to take them. 
B)  If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said he wouldn't take a cheque. 
C)  If Jed shows up with cash for the mechanic on the day and at the place designated in the contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him. 
D)  If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again. 
E)  If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor seeks her out for payment.

Question 2

The creation of a new contract through the substitution of a third party for one of the original parties to a contract,with consent by all,is known as ________.

Accepted Answer

The answer of The creation of a new contract through...

Question 3

What is the three-part test for determining if novation has occurred?

Accepted Answer

(1)The new debtor must assume the comple

Question 4

In all but one of the following situations,the contract is frustrated.Identify the exception.

Accepted Answer

A)  Jack contracts with Bill to build a barn on his one-acre lot, but before the permit is obtained, a new law prohibits barns on less than three acres. 
B)  Rudolph is due to appear in a local variety theatre that has just been destroyed in a fire of unknown origin. 
C)  Frank has contracted to ride Emperor, a prize horse, in the Canada Day races on July 1, but on June 28 the horse breaks a leg and has to be destroyed. 
D)  Jerry, a doctor, is due to perform a heart transplant operation on Mary, and the night before the surgery his arthritis becomes so painful that he cannot hold a scalpel. 
E)  Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down. 
A)  Jack contracts with Bill to build a barn on his one-acre lot, but before the permit is obtained, a new law prohibits barns on less than three acres. 
B)  Rudolph is due to appear in a local variety theatre that has just been destroyed in a fire of unknown origin. 
C)  Frank has contracted to ride Emperor, a prize horse, in the Canada Day races on July 1, but on June 28 the horse breaks a leg and has to be destroyed. 
D)  Jerry, a doctor, is due to perform a heart transplant operation on Mary, and the night before the surgery his arthritis becomes so painful that he cannot hold a scalpel. 
E)  Gregory, a trucker with whom you contracted last month to haul potatoes tomorrow, phones to tell you that his truck has broken down.

Question 5

In awarding damages for breach of contract,

Accepted Answer

A)  the plaintiff should be, to the extent possible, placed in the same position as he was prior to the agreement being made. 
B)  the defendant should be, to the extent possible, punished for the breach in order to deter her from repeating this course of behaviour. 
C)  the plaintiff should be, to the extent possible, placed in the same position as he would have been if the contract had been performed. 
D)  the defendant should only be required to pay what she can reasonably afford. 
E)  the plaintiff should only be entitled to compensation for specific and calculable costs and expenses. 
A)  the plaintiff should be, to the extent possible, placed in the same position as he was prior to the agreement being made. 
B)  the defendant should be, to the extent possible, punished for the breach in order to deter her from repeating this course of behaviour. 
C)  the plaintiff should be, to the extent possible, placed in the same position as he would have been if the contract had been performed. 
D)  the defendant should only be required to pay what she can reasonably afford. 
E)  the plaintiff should only be entitled to compensation for specific and calculable costs and expenses.

Question 6

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

Accepted Answer

These are equitable remedies,and therefo

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

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Accepted Answer

There are many situations where it simpl

Question 9

What is the legal position of the victim of an anticipatory breach?

Accepted Answer

The victim of such a breach has a choice

Question 10

Damages are an example of an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 11

What is a force majeure clause?

Accepted Answer

A contract term anticipating s

Question 12

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

Accepted Answer

A)  A contract can be ended by breach if there was a either a breach of condition or a breach of warranty. 
B)  A person has legally tendered performance if he pays a $500 debt in 25-cent coins. 
C)  If a person properly tenders performance of a service that is rejected by the other party, he is required to try again and again. 
D)  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. 
E)  If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off. 
A)  A contract can be ended by breach if there was a either a breach of condition or a breach of warranty. 
B)  A person has legally tendered performance if he pays a $500 debt in 25-cent coins. 
C)  If a person properly tenders performance of a service that is rejected by the other party, he is required to try again and again. 
D)  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. 
E)  If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off.

Question 13

For a contract to be frustrated,performance must be impossible.

Accepted Answer

A) True 
 B)False

Question 14

Ibolya entered into an employment contract with a Toronto advertising firm,VertaNet Ltd.The agreement included a non-competition clause that prevented her from participating in the advertising field in Toronto for five years after termination of her employment.In the event of a breach,the contract provided that Ibolya would have to pay VertaNet the sum of $500 000 as liquidated damages.Ibolya worked for VertaNet for a period of time,then took another job in Vancouver where she worked for four and half years.Six months before the expiry of the five-year period in her VertaNet contract,Ibolya returned to Toronto to take a part-time position as a small advertising firm.Although VertaNet did not suffer any damage,VertaNet sued Ibolya claiming $500 000.What is the likely outcome?

Accepted Answer

A)  The non-competition clause is likely a penalty and therefore unenforceable. 
B)  Although the amount claimed is unconscionable, the clause will be enforced as it is writing. 
C)  Non-competition clauses generally are void as not being in the public interest. 
D)  Liquidated damages clauses are illegal and therefore void. 
E)  Unless the $500 000 had been prepaid, Ibolya has no good defence. 
A)  The non-competition clause is likely a penalty and therefore unenforceable. 
B)  Although the amount claimed is unconscionable, the clause will be enforced as it is writing. 
C)  Non-competition clauses generally are void as not being in the public interest. 
D)  Liquidated damages clauses are illegal and therefore void. 
E)  Unless the $500 000 had been prepaid, Ibolya has no good defence.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A contract is terminated by agreement in which of the following situations?

Accepted Answer

A)  breach 
B)  frustration 
C)  unilateral release 
D)  a written statement by one party to cancel an accepted order 
E)  the occurrence of a condition subsequent 
A)  breach 
B)  frustration 
C)  unilateral release 
D)  a written statement by one party to cancel an accepted order 
E)  the occurrence of a condition subsequent

Question 17

Which one of the following statements accurately describes the operation of a condition subsequent?

Accepted Answer

A)  This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract. 
B)  This is a term in a contract that must be met before the contract becomes fully operational. 
C)  This occurs when some event that the parties have not anticipated makes performance radically different from what they agree to. 
D)  There is no such thing recognized in the common law. 
E)  This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event. 
A)  This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract. 
B)  This is a term in a contract that must be met before the contract becomes fully operational. 
C)  This occurs when some event that the parties have not anticipated makes performance radically different from what they agree to. 
D)  There is no such thing recognized in the common law. 
E)  This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event.

Question 18

"For a contract to be frustrated,performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Accepted Answer

It is inaccurate.It still may

Question 19

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10 000 to be forfeited in the event of Mike's failing to go through with the deal.This deposit was an honest estimate of the damages Rita would suffer.On these facts,which of the following is true?

Accepted Answer

A)  If Mike breaches the contract, he will have to pay Rita all the damages that directly and naturally flow from the breach. 
B)  If Mike breaches the contract, he would not have to pay $10 000 even if Rita suffered a substantial loss. 
C)  If Mike breaches the contract, he would have to pay $10 000 even if Rita's actual loss was $40 000. 
D)  If the contract price agreed upon was $150 000 and Rita, after Mike breaches the contract, sells the house in one week for $138 000, she will still be able to recoup all her losses. 
E)  A clause in a contract that provides for the forfeiture of a deposit is called an exemption clause. 
A)  If Mike breaches the contract, he will have to pay Rita all the damages that directly and naturally flow from the breach. 
B)  If Mike breaches the contract, he would not have to pay $10 000 even if Rita suffered a substantial loss. 
C)  If Mike breaches the contract, he would have to pay $10 000 even if Rita's actual loss was $40 000. 
D)  If the contract price agreed upon was $150 000 and Rita, after Mike breaches the contract, sells the house in one week for $138 000, she will still be able to recoup all her losses. 
E)  A clause in a contract that provides for the forfeiture of a deposit is called an exemption clause.

Question 20

Perfect Programs Ltd.hired Gill,who had training not only in programming but also in pharmacy management,to create a computer program for use in a pharmacy to take care of all its needs with regard to inventory,billings,prescriptions,etc.The employment contract provided for a three-year term with no provision for early termination and the following covenant: "The employee,upon his leaving the employ of the employer,shall not compete,directly or indirectly,in any capacity whatsoever,within five miles of this place of employment." After Gill had been there for two years and the project was only months away from completion,he was approached by a representative of Big Big Co.(with offices in the same building),who offered Gill a job with,among other things,a higher salary and more staff to help him complete a program for use by drugstores.Gill accepted.To replace Gill,Perfect Programs Ltd.hired a man from New York with the same training as Gill and sued Gill for breach of contract.Which of the following is true?

Accepted Answer

A)  Gill is not in breach of contract because the restrictive covenant is illegal, so the whole contract is void. 
B)  Gill will have to pay damages for all the loss that directly flows from the breach no matter how improbable. 
C)  If Gill knew that there would be a delay before the new employee could reach the level Gill had attained before his departure, the costs of the delay would be factored into the damages. 
D)  Perfect Programs Ltd. could have abandoned the project and just sued Gill for the entire anticipated lost profit. 
E)  Perfect Programs Ltd. could get an injunction against Gill, because the restrictive covenant is reasonable in this form. 
A)  Gill is not in breach of contract because the restrictive covenant is illegal, so the whole contract is void. 
B)  Gill will have to pay damages for all the loss that directly flows from the breach no matter how improbable. 
C)  If Gill knew that there would be a delay before the new employee could reach the level Gill had attained before his departure, the costs of the delay would be factored into the damages. 
D)  Perfect Programs Ltd. could have abandoned the project and just sued Gill for the entire anticipated lost profit. 
E)  Perfect Programs Ltd. could get an injunction against Gill, because the restrictive covenant is reasonable in this form.

Tufts and McDougal were having an argument about the law regarding performance of a contract.Which one of the following statements of theirs is correct?

The creation of a new contract through the substitution of a third party for one of the original parties to a contract,with consent by all,is known as ________.

What is the three-part test for determining if novation has occurred?

In all but one of the following situations,the contract is frustrated.Identify the exception.

In awarding damages for breach of contract,

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

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

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

What is the legal position of the victim of an anticipatory breach?

Damages are an example of an equitable remedy.

What is a force majeure clause?

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

For a contract to be frustrated,performance must be impossible.

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

A contract is terminated by agreement in which of the following situations?

Which one of the following statements accurately describes the operation of a condition subsequent?

"For a contract to be frustrated,performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10 000 to be forfeited in the event of Mike's failing to go through with the deal.This deposit was an honest estimate of the damages Rita would suffer.On these facts,which of the following is true?

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

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Exam 9: The End of the Contractual Relationship

Tufts and McDougal were having an argument about the law regarding performance of a contract.Which one of the following statements of theirs is correct?

The creation of a new contract through the substitution of a third party for one of the original parties to a contract,with consent by all,is known as ________.

What is the three-part test for determining if novation has occurred?

In all but one of the following situations,the contract is frustrated.Identify the exception.

In awarding damages for breach of contract,

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

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

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

What is the legal position of the victim of an anticipatory breach?

Damages are an example of an equitable remedy.

What is a force majeure clause?

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

For a contract to be frustrated,performance must be impossible.

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

A contract is terminated by agreement in which of the following situations?

Which one of the following statements accurately describes the operation of a condition subsequent?

"For a contract to be frustrated,performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10 000 to be forfeited in the event of Mike's failing to go through with the deal.This deposit was an honest estimate of the damages Rita would suffer.On these facts,which of the following is true?

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