Exam 9: The End of the Contractual Relationship

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?

Explain what is meant by specific performance in contract law.

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

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

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

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?

Discuss exculpatory (exemption)clauses and how the courts treat them.

Monroe sold computers.On the purchase of a new StarSystem computer the buyer signed the written contract that contained the following clause: "The seller is not liable for any breach of condition or warranty express or implied in this contract." The buyer was a businessman who intended to use the machine in his business for a while and then resell it.The machine was used properly but didn't operate well,and within one week it would not work at all.Monroe refused to take back the machine or to refund any money by relying on the exemption clause.Which of the following would be the buyer's best argument for avoiding the effect of the exemption clause in this case?

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

Explain how a contract can be discharged by agreement.

Which of the following is one of the remedies generally available for a breach of contract?

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.

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

A breach of warranty will bring the contract to an end.

Complications can give rise to frustration of contract.When these complications are avoidable,the court will not likely make a finding of frustration of contract.Comment on what a prudent businessperson could do to minimize the risk.

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

If neighbours have a contract agreeing not to erect a building that blocks the other's view,which remedy might the court impose if that agreement is breached?

Injunction is an example of an equitable remedy.

Explain what is meant by quantum meruit.

When a condition is breached,the victim can only sue for damages but must continue to perform their obligations under the contract.