Question 1

Explain what is meant by an anticipatory breach.

Accepted Answer

This is where one of the parti

Question 2

In B.C.,Mr.Buyer sued Mr.Seller for breach of contract because Mr.Seller failed to deliver a computer system on time in accordance with their contract.Mr.Seller argued that he was not in breach and that the contract had been frustrated.The computer was destroyed by water when a careless driver knocked over a fire hydrant outside the warehouse holding the computer.No deposit had been paid.The court held that the contract was frustrated.Based on this ruling,how does the court handle the situation?

Accepted Answer

A) Buyer will succeed against Seller for damages because the court will treat it as if it were an anticipatory breach. 
B) The court will let the losses lie where they fell,despite any of Seller's costs in preparing the computer system. 
C) Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract. 
D) The court will look at the costs incurred and any payments made,and will apportion the losses between the parties. 
E) The court will treat the contract as if there were a common mistake about the existence of the subject matter. 
A) Buyer will succeed against Seller for damages because the court will treat it as if it were an anticipatory breach. 
B) The court will let the losses lie where they fell,despite any of Seller's costs in preparing the computer system. 
C) Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract. 
D) The court will look at the costs incurred and any payments made,and will apportion the losses between the parties. 
E) The court will treat the contract as if there were a common mistake about the existence of the subject matter.

Question 3

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered.Indicate two limitations on this principle.

Accepted Answer

Limitations on this principle are remote

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

In which of the following situations would the contract not be discharged by agreement?

Accepted Answer

A) Both parties agree to let a new person be substituted into the contract in place of one of the old parties. 
B) Both parties to the contract agree to call it off before either one has performed. 
C) A condition subsequent that calls for termination of the contract has not been met. 
D) The two parties have reached "accord and satisfaction" with regard to terminating the contract. 
E) Both parties agree to call off the contract under which one paid the other $5000 for work that has not yet been performed,but the other now promises to return the $5000. 
A) Both parties agree to let a new person be substituted into the contract in place of one of the old parties. 
B) Both parties to the contract agree to call it off before either one has performed. 
C) A condition subsequent that calls for termination of the contract has not been met. 
D) The two parties have reached "accord and satisfaction" with regard to terminating the contract. 
E) Both parties agree to call off the contract under which one paid the other $5000 for work that has not yet been performed,but the other now promises to return the $5000.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

When an anticipatory breach has taken place (where a person,before performance is due,states that he will not perform the contract)

Accepted Answer

A) the victim may sue immediately and not wait to see if the contract is performed or not. 
B) the victim must wait to see if the contract is performed,but damages are calculated from the time of the refusal. 
C) the victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
D) such a statement made before performance is due has no effect on the contractual obligations of the parties. 
E) the victim may not be able to recover damages that occur after the anticipatory breach. 
A) the victim may sue immediately and not wait to see if the contract is performed or not. 
B) the victim must wait to see if the contract is performed,but damages are calculated from the time of the refusal. 
C) the victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
D) such a statement made before performance is due has no effect on the contractual obligations of the parties. 
E) the victim may not be able to recover damages that occur after the anticipatory breach.

Question 12

Distinguish between a down payment and a deposit.

Accepted Answer

A down payment is merely the first payme

Question 13

Explain the injunction as it is available in contract law.

Accepted Answer

The breaching party is ordered

Question 14

An agreement to end a contract,with extra consideration to be supplied by the party benefiting from the discharge,is known as ________.

Accepted Answer

accord and

Question 15

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

Accepted Answer

These are equitable remedies,and therefo

Question 16

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 Joe for the other $2000.Explain the likely outcome.

Accepted Answer

The outcome depends on the jurisdiction.

Question 17

Repudiation occurs when one party indicates that they do not intend to follow through with their end of the deal.

Accepted Answer

A) True 
 B)False

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 when the buyer suffers a loss?

Accepted Answer

A) A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions. 
B) The buyer of an expensive computer software program received,a month after the sale,an invoice on which was printed an exemption clause that he hadn't been shown before. 
C) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms. 
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) Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause. 
A) A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions. 
B) The buyer of an expensive computer software program received,a month after the sale,an invoice on which was printed an exemption clause that he hadn't been shown before. 
C) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms. 
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) Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause.

Question 19

Victims of breach have a duty to mitigate damages,meaning they must do what they can to keep those damages as low as possible.

Accepted Answer

A) True 
 B)False

Question 20

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 him 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 he 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 him 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 he can reasonably afford. 
E) the plaintiff should only be entitled to compensation for specific and calculable costs and expenses.

Explain what is meant by an anticipatory breach.

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered.Indicate two limitations on this principle.

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

In which of the following situations would the contract not be discharged by agreement?

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

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.

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

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

When an anticipatory breach has taken place (where a person,before performance is due,states that he will not perform the contract)

Distinguish between a down payment and a deposit.

Explain the injunction as it is available in contract law.

An agreement to end a contract,with extra consideration to be supplied by the party benefiting from the discharge,is known as ________.

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

Repudiation occurs when one party indicates that they do not intend to follow through with their end of the deal.

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 when the buyer suffers a loss?

Victims of breach have a duty to mitigate damages,meaning they must do what they can to keep those damages as low as possible.

In awarding damages for breach of contract

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

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Exam 9: The End of the Contractual Relationship

Explain what is meant by an anticipatory breach.

The purpose of damages in the form of monetary compensation under a breach of contract action is to compensate the injured party for the losses suffered.Indicate two limitations on this principle.

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

In which of the following situations would the contract not be discharged by agreement?

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

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.

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

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

When an anticipatory breach has taken place (where a person,before performance is due,states that he will not perform the contract)

Distinguish between a down payment and a deposit.

Explain the injunction as it is available in contract law.

An agreement to end a contract,with extra consideration to be supplied by the party benefiting from the discharge,is known as ________.

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

Repudiation occurs when one party indicates that they do not intend to follow through with their end of the deal.

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 when the buyer suffers a loss?

Victims of breach have a duty to mitigate damages,meaning they must do what they can to keep those damages as low as possible.

In awarding damages for breach of contract

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