Question 1

Which of the following is true with regard to ending a contract by agreement?

Accepted Answer

A)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract. 
B)  A contract can be ended by one party if he finds a better deal-e.g., by cancelling an order that has been accepted, as long as this is done before performance. 
C)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation. 
D)  A contract can be ended by agreement if one party has performed his obligation and agrees to take something as satisfaction from the other although that other hasn't performed according to the contract. 
E)  A contract can be ended unilaterally by one party. 
A)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract. 
B)  A contract can be ended by one party if he finds a better deal-e.g., by cancelling an order that has been accepted, as long as this is done before performance. 
C)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation. 
D)  A contract can be ended by agreement if one party has performed his obligation and agrees to take something as satisfaction from the other although that other hasn't performed according to the contract. 
E)  A contract can be ended unilaterally by one party.

Question 2

Indicate three different types of equitable remedies and distinguish among them.

Accepted Answer

1.Specific performance.Here the court or

Question 3

Under what circumstances will a court order a mandatory injunction? Illustrate with a real-world example.

Accepted Answer

In rare circumstances,the courts may iss

Question 4

Explain the injunction as it is available in contract law.

Accepted Answer

The breaching party is ordered

Question 5

Connie enters into an agreement with Razmin,a local artist,to showcase a particular one of her sculptures at a prestigious art show.The day before the show,the gallery where the sculpture was being stored burns to the ground.Which of the following represents the most likely outcome?

Accepted Answer

A)  The contract has been discharged through frustration. 
B)  Razmin has breached the contract by failing to deliver the sculpture. 
C)  Razmin can simply provide a different sculpture to satisfy the contract. 
D)  Connie will still need to pay Razmin the same price agreed to in the contract, because the fire was not Razmin's fault. 
E)  The contract is void. 
A)  The contract has been discharged through frustration. 
B)  Razmin has breached the contract by failing to deliver the sculpture. 
C)  Razmin can simply provide a different sculpture to satisfy the contract. 
D)  Connie will still need to pay Razmin the same price agreed to in the contract, because the fire was not Razmin's fault. 
E)  The contract is void.

Question 6

Courts enforce exemption clauses because it is assumed that they reflect the will of the parties to the contract.

Accepted Answer

A) True 
 B)False

Question 7

A term in a contract that says that,on the occurrence of an event,the parties' obligations will end is an example of

Accepted Answer

A)  condition subsequent. 
B)  condition precedent. 
C)  discharge by frustration. 
D)  tender of performance. 
E)  discharge by agreement. 
A)  condition subsequent. 
B)  condition precedent. 
C)  discharge by frustration. 
D)  tender of performance. 
E)  discharge by agreement.

Question 8

Mr.Jones rented an apartment to Ms.Smith under a one-year tenancy agreement.Ms.Smith abandoned the apartment after three months.Jones located Smith and sued her for breach of contract.Which of the following is the best statement with regard to the quantum of damages Jones can recover?

Accepted Answer

A)  damages equivalent to nine months rent even if the apartment is rented again 
B)  damages equivalent to nine months rent less whatever rent was received from a subsequent tenant of that apartment 
C)  all the damages that directly and naturally flow from the breach no matter how unforeseeable 
D)  nothing, even if it takes six months to rent the apartment again 
E)  He will get nothing. When dealing with land, the appropriate remedy is specific performance. 
A)  damages equivalent to nine months rent even if the apartment is rented again 
B)  damages equivalent to nine months rent less whatever rent was received from a subsequent tenant of that apartment 
C)  all the damages that directly and naturally flow from the breach no matter how unforeseeable 
D)  nothing, even if it takes six months to rent the apartment again 
E)  He will get nothing. When dealing with land, the appropriate remedy is specific performance.

Question 9

Where one party refuses to perform his contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

Accepted Answer

A)  The first party may continue to refuse to perform, and there is nothing the second party can do about that. 
B)  The contract may be discharged by frustration. 
C)  The first party might expressly repudiate the contract and therefore not be liable for breach. 
D)  The first party might breach a condition subsequent. 
E)  The second party might receive more damages for which he can't recover compensation. 
A)  The first party may continue to refuse to perform, and there is nothing the second party can do about that. 
B)  The contract may be discharged by frustration. 
C)  The first party might expressly repudiate the contract and therefore not be liable for breach. 
D)  The first party might breach a condition subsequent. 
E)  The second party might receive more damages for which he can't recover compensation.

Question 10

The case of Sail Labrador Ltd.v.Challenger One (The)involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected.What did the Supreme Court of Canada hold?

Accepted Answer

A)  The contract had been substantially performed and the option was still available. 
B)  The breach, although minor, rendered the contract unenforceable. 
C)  The breach, although minor, rendered the contract voidable at the option of the non-breaching party. 
D)  The contract had not been perfectly performed, so the contract was void. 
E)  No breach can be considered inconsequential at law. 
A)  The contract had been substantially performed and the option was still available. 
B)  The breach, although minor, rendered the contract unenforceable. 
C)  The breach, although minor, rendered the contract voidable at the option of the non-breaching party. 
D)  The contract had not been perfectly performed, so the contract was void. 
E)  No breach can be considered inconsequential at law.

Question 11

Which of the following statements regarding novation is false?

Accepted Answer

A)  Novation refers to the creation of a new contract through the substitution of a third party for one of the original parties to a contract, with everyone's consent. 
B)  Novation requires that the new debtor assume complete liability. 
C)  Novation requires the creditor to accept the new debtor as principal debtor, not merely as a guarantor. 
D)  Novation requires the creditor to accept the new contract in full satisfaction and substitution for the old contract. 
E)  Novation requires the inclusion of a force majeure clause in order to be enforceable. 
A)  Novation refers to the creation of a new contract through the substitution of a third party for one of the original parties to a contract, with everyone's consent. 
B)  Novation requires that the new debtor assume complete liability. 
C)  Novation requires the creditor to accept the new debtor as principal debtor, not merely as a guarantor. 
D)  Novation requires the creditor to accept the new contract in full satisfaction and substitution for the old contract. 
E)  Novation requires the inclusion of a force majeure clause in order to be enforceable.

Question 12

A deposit must be returned if no damage has taken place.

Accepted Answer

A) True 
 B)False

Question 13

Dubocovich had contracted to supply a health-food store with jars of Melatonin,a hormone reported in the media as a miracle potion.After they contracted,but before delivery,the government banned the sale of Melatonin so that it could be properly tested under government auspices.Dubocovich told the owner of the store,Mr.Wei,that he wouldn't be delivering the Melatonin because of the government ban.The demand for the Melatonin was high.Mr.Wei was very upset with Dubocovich for failing to honour his contractual obligations.Furthermore,he had given Dubocovich $5000 in advance,which Dubocovich needed and used to pay the freight costs in bringing the drug to his warehouse.Wei sued Dubocovich for breach of contract.Which of the following is correct with respect to the legal position of the parties?

Accepted Answer

A)  Wei will be successful in his breach of contract action. 
B)  This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen. 
C)  Wei will be able to get back his $5000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract. 
D)  When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party. 
E)  The contract is illegal and void. 
A)  Wei will be successful in his breach of contract action. 
B)  This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen. 
C)  Wei will be able to get back his $5000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract. 
D)  When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party. 
E)  The contract is illegal and void.

Which of the following is true with regard to ending a contract by agreement?

Indicate three different types of equitable remedies and distinguish among them.

Under what circumstances will a court order a mandatory injunction? Illustrate with a real-world example.

Explain the injunction as it is available in contract law.

Connie enters into an agreement with Razmin,a local artist,to showcase a particular one of her sculptures at a prestigious art show.The day before the show,the gallery where the sculpture was being stored burns to the ground.Which of the following represents the most likely outcome?

Courts enforce exemption clauses because it is assumed that they reflect the will of the parties to the contract.

A term in a contract that says that,on the occurrence of an event,the parties' obligations will end is an example of

Mr.Jones rented an apartment to Ms.Smith under a one-year tenancy agreement.Ms.Smith abandoned the apartment after three months.Jones located Smith and sued her for breach of contract.Which of the following is the best statement with regard to the quantum of damages Jones can recover?

Where one party refuses to perform his contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

The case of Sail Labrador Ltd.v.Challenger One (The)involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected.What did the Supreme Court of Canada hold?

Which of the following statements regarding novation is false?

A deposit must be returned if no damage has taken place.

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 of the following is true with regard to ending a contract by agreement?

Indicate three different types of equitable remedies and distinguish among them.

Under what circumstances will a court order a mandatory injunction? Illustrate with a real-world example.

Explain the injunction as it is available in contract law.

Connie enters into an agreement with Razmin,a local artist,to showcase a particular one of her sculptures at a prestigious art show.The day before the show,the gallery where the sculpture was being stored burns to the ground.Which of the following represents the most likely outcome?

Courts enforce exemption clauses because it is assumed that they reflect the will of the parties to the contract.

A term in a contract that says that,on the occurrence of an event,the parties' obligations will end is an example of

Mr.Jones rented an apartment to Ms.Smith under a one-year tenancy agreement.Ms.Smith abandoned the apartment after three months.Jones located Smith and sued her for breach of contract.Which of the following is the best statement with regard to the quantum of damages Jones can recover?

Where one party refuses to perform his contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

The case of Sail Labrador Ltd.v.Challenger One (The)involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected.What did the Supreme Court of Canada hold?

Which of the following statements regarding novation is false?

A deposit must be returned if no damage has taken place.

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