Question 1

Indicate three conditions under which a contract may come to an end on the basis of frustration.

Accepted Answer

1.Where the contract is rendered impossi

Question 2

In Blundon v.Ashton Pools,the plaintiff sued the defendant after discovering cracks in the patio that surrounded the pool the defendant had installed for them.The defendant claimed that the exemption clause in the contract excused them from liability.What properly described the outcome in this case?

Accepted Answer

A) The exemption clause protected Ashton Pools because of the principle of "freedom to contract". 
B) The exemption clause protected Ashton Pools because Blundon was made aware of the clause prior to signing the contract. 
C) The exemption clause did not protect Ashton Pools because it was an illegal restraint of trade. 
D) The exemption clause was not applied as the damage was not an Act of God and Ashton Pools failed to bring the clause to the attention of Blundon. 
E) The exemption clause was not applied as it did not pertain to the damage that was caused. 
A) The exemption clause protected Ashton Pools because of the principle of "freedom to contract". 
B) The exemption clause protected Ashton Pools because Blundon was made aware of the clause prior to signing the contract. 
C) The exemption clause did not protect Ashton Pools because it was an illegal restraint of trade. 
D) The exemption clause was not applied as the damage was not an Act of God and Ashton Pools failed to bring the clause to the attention of Blundon. 
E) The exemption clause was not applied as it did not pertain to the damage that was caused.

Question 3

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

Accepted Answer

A) In law,a certified cheque is the same as cash. 
B) If a person owing money has tendered payment in a reasonable way,at a reasonable time,and it has been refused,he is free from any further obligation to pay. 
C) If a person attempts to perform services in accordance with the terms of the contract and the buyer refuses those services,the person attempting to perform can sue the buyer with no further attempt to perform. 
D) Legal tender consists of bills or coin in any amount. 
E) If a warranty is breached,the victim has no further obligation to perform under the contract. 
A) In law,a certified cheque is the same as cash. 
B) If a person owing money has tendered payment in a reasonable way,at a reasonable time,and it has been refused,he is free from any further obligation to pay. 
C) If a person attempts to perform services in accordance with the terms of the contract and the buyer refuses those services,the person attempting to perform can sue the buyer with no further attempt to perform. 
D) Legal tender consists of bills or coin in any amount. 
E) If a warranty is breached,the victim has no further obligation to perform under the contract.

Question 4

Joe owed Harry $500,but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment.Explain Joe's legal position.

Accepted Answer

Joe must pay,although payment was tender

Question 5

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 6

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

Accepted Answer

It is usually ineffective in t

Question 7

Where a contract is discharged or modified by a unilateral discharge,explain the problem that arises and its solution.

Accepted Answer

A unilateral discharge involves one pers

Question 8

When a contract has been performed in all but a minor aspect of it,this is known as ________.

Accepted Answer

substantia

Question 9

Sam agreed to manufacture and supply 25 specially adapted computers for Joe to use for simulated horse racing in his string of hotels throughout the province.Unfortunately,after Sam almost completed the computers,the province passed a law prohibiting the manufacture and sale of this kind of machine.Joe had paid a deposit of $5000,but Sam had incurred $30,000 of expenses in manufacturing these machines.The total purchase price agree upon between these parties was $50,000.Joe sued Sam for the return of his $5000 deposit.Sam,in turn,sued Joe for a contribution towards his loss.Discuss the legal position of the parties.

Accepted Answer

The effect will vary to some extent with

Question 10

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

Accepted Answer

This statement is inaccurate.I

Question 11

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

Accepted Answer

The other

Question 12

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 13

In the case of an anticipatory breach

Accepted Answer

A) you have the right to demand the other side to perform,but you will not be required to perform yourself. 
B) you have the right to demand performance or to sue for breach. 
C) you must wait until the actual breach occurs before you can take any steps. 
D) the contract is declared void ab initio. 
E) the contract is unenforceable by either party. 
A) you have the right to demand the other side to perform,but you will not be required to perform yourself. 
B) you have the right to demand performance or to sue for breach. 
C) you must wait until the actual breach occurs before you can take any steps. 
D) the contract is declared void ab initio. 
E) the contract is unenforceable by either party.

Question 14

Mable grew a field of corn and agreed to provide 300 ears of corn to Jan's Produce in the months of August and September.Unfortunately,her crop was destroyed by hail and she was unable to make the delivery.Jan sued for breach of contract.Discuss the likely outcome.

Accepted Answer

Jan would win.Mable should hav

Question 15

Pat O'Grady owes Robinson $5000 in cash,but resents Robinson talking about O'Grady's debt among mutual acquaintances.O'Grady wants to know which of the following tactics would be legal performance.

Accepted Answer

A) Deliver the money to his house (instead of to his office)at 3:00 a.m.on the due date 
B) Not pay Robinson until Robinson came for the money 
C) Pay Robinson on time but pay it all in dimes 
D) Pay him on time but with a cheque 
E) Pay him on time in $5 bills 
A) Deliver the money to his house (instead of to his office)at 3:00 a.m.on the due date 
B) Not pay Robinson until Robinson came for the money 
C) Pay Robinson on time but pay it all in dimes 
D) Pay him on time but with a cheque 
E) Pay him on time in $5 bills

Question 16

Smedlap,a trucker,and Dewdney,a farmer,entered into a contract under which Smedlap agreed to haul all of Dewdney's pumpkin crop to market in time for the Halloween sales.However,the day before Smedlap was to pick up the pumpkins,he called Dewdney and told him that,since he had received such a good offer to sell his truck,he had sold it and therefore was not able to haul Dewdney's pumpkins.There was not enough time for Smedlap to buy another truck,but he was sure that Dewdney could make other arrangements and he hoped that he hadn't unduly inconvenienced him.Unfortunately,Dewdney was not able to make arrangements in time for the Halloween market,and instead he had to sell his crop to a pie-filling canner for much less than he could reasonably have expected at the market.Furthermore,the market owners were so disappointed by Dewdney's failure to deliver that they refused to give him their usual order for Christmas turkeys.In previous years,this turkey order had generated his major income for the year.He was forced to find another outlet for his turkeys,and again he ended up selling to commercial processors for a substantially lower price.As a result of these two events,Dewdney was unable to keep up his mortgage payments on the farm and eventually he lost it to the bank in a foreclosure action.Dewdney is now suing Smedlap to recover these losses.Identify the correct statement with respect to the question of whether Smedlap's conduct was a breach of contract.

Accepted Answer

A) Smedlap simply cancelled the contract,which he was entitled to do as long as it was before performance was due. 
B) This was not a breach because Smedlap did not do it maliciously,and he gave Dewdney what he honestly believed was adequate notice to make other arrangements. 
C) The contract was discharged by frustration. 
D) Smedlap is not liable because it was not his fault that Dewdney was unable to make other suitable arrangements. 
E) This was a breach that consisted of self-induced frustration. 
A) Smedlap simply cancelled the contract,which he was entitled to do as long as it was before performance was due. 
B) This was not a breach because Smedlap did not do it maliciously,and he gave Dewdney what he honestly believed was adequate notice to make other arrangements. 
C) The contract was discharged by frustration. 
D) Smedlap is not liable because it was not his fault that Dewdney was unable to make other suitable arrangements. 
E) This was a breach that consisted of self-induced frustration.

Question 17

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 18

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Accepted Answer

A) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B) The purchaser of goods,after the sale,is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C) The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D) There has been a breach of the fundamental obligation of the contract,and the court holds that,on its true construction,the parties did not mean it to cover a serious breach. 
E) The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract. 
A) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B) The purchaser of goods,after the sale,is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C) The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D) There has been a breach of the fundamental obligation of the contract,and the court holds that,on its true construction,the parties did not mean it to cover a serious breach. 
E) The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract.

Question 19

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

Accepted Answer

Promissory estoppel is one of the most d

Question 20

Carson arranged with his brother-in-law,Waxman,that he would try to buy a famous old B.C.coastal airplane,the Spruce Ghost,which Waxman would then buy from him to display in his flight museum.Waxman promised to pay Carson a 10% commission over the price that Carson had to pay to buy the plane,so that their price would be 110% of Carson's purchase price.Carson and the owner,Wonka,agreed on a price of $80,000.After reconditioning the plane but before delivering it to Carson,Wonka decided to take it up for one last nostalgic flight and,because of his carelessness,he crashed it on take-off.Although Wonka escaped uninjured,the plane caught fire and was totally destroyed.Carson was able to locate a similar plane for only $60,000 but Waxman wasn't interested.Carson sued his brother-in-law and Wonka.What is the likely outcome of this suit?

Accepted Answer

A) Waxman will have to pay Carson $8000,the commission on the agreed sale price between Carson and Wonka. 
B) Waxman will have to pay Carson $6000 as the commission he would have made on the purchase of the second plane. 
C) Wonka will have to pay Carson damages (probably $8000)for breach of contract. 
D) Because the contract between Carson and Wonka was frustrated by the destruction of the Spruce Ghost,Carson has no claim against anyone. 
E) The Frustrated Contracts Act will require Carson to share in the expense of reconditioning the Spruce Ghost that Wonka had undertaken in preparation for sale. 
A) Waxman will have to pay Carson $8000,the commission on the agreed sale price between Carson and Wonka. 
B) Waxman will have to pay Carson $6000 as the commission he would have made on the purchase of the second plane. 
C) Wonka will have to pay Carson damages (probably $8000)for breach of contract. 
D) Because the contract between Carson and Wonka was frustrated by the destruction of the Spruce Ghost,Carson has no claim against anyone. 
E) The Frustrated Contracts Act will require Carson to share in the expense of reconditioning the Spruce Ghost that Wonka had undertaken in preparation for sale.

Indicate three conditions under which a contract may come to an end on the basis of frustration.

In Blundon v.Ashton Pools,the plaintiff sued the defendant after discovering cracks in the patio that surrounded the pool the defendant had installed for them.The defendant claimed that the exemption clause in the contract excused them from liability.What properly described the outcome in this case?

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

Joe owed Harry $500,but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment.Explain Joe's legal position.

Which of the following statements regarding novation is false?

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

Where a contract is discharged or modified by a unilateral discharge,explain the problem that arises and its solution.

When a contract has been performed in all but a minor aspect of it,this is known as ________.

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

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

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 ________.

In the case of an anticipatory breach

Mable grew a field of corn and agreed to provide 300 ears of corn to Jan's Produce in the months of August and September.Unfortunately,her crop was destroyed by hail and she was unable to make the delivery.Jan sued for breach of contract.Discuss the likely outcome.

Pat O'Grady owes Robinson $5000 in cash,but resents Robinson talking about O'Grady's debt among mutual acquaintances.O'Grady wants to know which of the following tactics would be legal performance.

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

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: The Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence,Professional Liability,and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 9: The End of the Contractual Relationship

Indicate three conditions under which a contract may come to an end on the basis of frustration.

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

Joe owed Harry $500,but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment.Explain Joe's legal position.

Which of the following statements regarding novation is false?

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

Where a contract is discharged or modified by a unilateral discharge,explain the problem that arises and its solution.

When a contract has been performed in all but a minor aspect of it,this is known as ________.

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

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

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 ________.

In the case of an anticipatory breach

Mable grew a field of corn and agreed to provide 300 ears of corn to Jan's Produce in the months of August and September.Unfortunately,her crop was destroyed by hail and she was unable to make the delivery.Jan sued for breach of contract.Discuss the likely outcome.

Pat O'Grady owes Robinson $5000 in cash,but resents Robinson talking about O'Grady's debt among mutual acquaintances.O'Grady wants to know which of the following tactics would be legal performance.

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

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: The Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence,Professional Liability,and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters