Exam 5: Performance and Breach of Contract

Bozo signs up to join the Army because the advertisements make it look like summer camp.Later,he changes his mind and shoots himself in the foot so he won't have to go.This does not frustrate the contract,though the contract may be avoidable on other grounds.

Ms Sherbourne bought a candy bar costing 80 cents.She paid for it by presenting the storekeeper with a $2 coin.While this is not legal tender,it is so customary to give change that the storekeeper would have to warn customers if he was prepared to accept only legal tender.

Joe sold a barn full of hay to Jack but before Jack could transfer it to his own barn,a hurricane blew the roof off Joe's barn,and that part of the hay that did not blow away was ruined by the torrential rains.The contract is frustrated.

A judgment by Mr.Justice Exx for the plaintiff Wy,in his suit against Zedd for breach of a condition of a contract,has the effect of discharging the contract,so that Wy has no further obligations under it,and substitutes the terms of the judgment for the terms of the contract,which Zedd must then perform.

Helen offered to sell her 10-speed touring bicycle to Jane for $200 on her return from a two-week bicycle trip to a distant city.At the end of the first week,Jane received a long distance telephone call from Helen,in which Helen advised Jane that she had decided not sell the bicycle on her return.Jane was disappointed,as a similar bicycle on the market would cost her at least $250.She decided to wait until Helen returned then urge her to go through with the sale.Before Helen reached home,her bicycle was stolen,and never found. -Repudiation before the date fixed for performance is known as anticipatory breach.

Ken entered into a contract with Horst to haul gravel in his large tandem truck from Horst's gravel pit to a building site some three miles distant,at $60 per load.Before Ken was to begin performance,his truck was destroyed in a serious traffic accident. -If Ken deliberately destroyed his truck,Horst can insist that he perform the agreement or compensate Horst for any loss that might result from Ken's non-performance.

For contracts concerning the purchase of land,once payment in full accordance with the terms of the contract has been offered by the purchaser,if not provided in turn by the vendor with a deed to the property,the purchaser may

Explain the legal term "frustration" and give an example of how this doctrine might be applied by giving a specific example.

In the contract between Canada Oil Company and the Government of Iran for the supply of Iranian crude oil,there is a clause that allows either party to end the contract on declaration of war between Canada and Iran,or the imposition of United Nations trade sanctions on either country.This clause is

Dick agreed to paint Jane's house for $4,000,inside and out.Normally,it would have cost Jane $6,500 but Dick felt sorry for her because she was a single mother with four children and not much money,so he decided to give her a good deal.When Dick had painted everything except the kitchen ceiling,Arthur asked him to go on a fishing holiday,and Dick,who was rather irresponsible,decided he had had enough painting.He left a note for Jane saying "You've had more than your money's worth with what I've done already.I'll expect your cheque for $4,000 to be at my office when I return in two or three weeks." Which of the following statements is correct?

Ken entered into a contract with Horst to haul gravel in his large tandem truck from Horst's gravel pit to a building site some three miles distant,at $60 per load.Before Ken was to begin performance,his truck was destroyed in a serious traffic accident. -If Ken owned a fleet of trucks,and Ken had a number of spare trucks,the doctrine of frustration would not apply to the case,and Ken would be obliged to perform the contract.

Fran's Flowers is required,as a condition of their contract,to supply the Ubiquitous Chip,a trendy restaurant,with 45 flower arrangements for tables and three large displays,twice a week.This week,it was two table arrangements short one day and three short on the other. -Fran's Flowers is entitled to invoke the doctrine of quantum meruit and be paid for the value of what was delivered.

After 20 years of faithful and excellent service for www.youretooold.com,Mohamed was dismissed by the company.Mohamed was a vice president who had just turned 55 years old.Mohamed was offered a severance page equivalent to 18 months salary and benefits,which he gratefully accepted.After receiving his lump-sum severance,Mohamed vacationed in Dubai for the next two years.When www.youretooold.com learned of Mohamed's lengthy vacation funded by the severance package,www.youretooold.com sued Mohamed to get the severance pay packaged reduced on the basis of lack of mitigation on Mohamed's part.Will www.yourtooold.com be successful in its suit?

The contract between Bayson's Department Store and Clemson's Manufacturing contains a clause that allows either party to end the contract on 60 days' notice and the payment of liquidated damages,which are set at a reasonable amount.This clause is

In the contract of sale of Cahalan's house to Greenwood,no particular method of payment was specified.Greenwood's lawyer has heard rumours that Cahalan got a much better offer after he signed the deal with Greenwood,and,from the attitude displayed by Cahalan recently,Greenwood's lawyer thinks Cahalan may be hoping the deal will fall through.Greenwood

Paul ordered a motor bike from Moto-Haus.He had reviewed all the specifications and told the salesperson of his final choice.When the bike arrived,Paul found that it did not live up to the fuel efficiency that he expected or that was claimed in the brochure.He took the bike back to Moto-Haus,and demanded the return of his money,which was refused.Paul would be best advised to

Derrick offered to purchase Perry's vehicle for $3,050 cash,with Perry to deliver the vehicle the next Wednesday,at which time Derrick would pay the $3,050.On the Wednesday,when Perry did not deliver,Derrick went to Perry's home,and found him in his garden.Derrick offered Perry the money,but Perry refused,saying that he had changed his mind,and did not wish to sell his automobile. -If Derrick had offered Perry exactly $3,050 in cash,he had made a valid tender of payment.

Jamil,a prospective purchaser of real estate,visited his lawyer with three completely executed agreements of purchase and sale,each for a different piece of real estate.Each offer was conditional upon "the purchaser being able to obtain $50,000 financing to his satisfaction within 10 days at a rate of interest not exceeding 10%,failing which this offer is void." Financing of this type was easily available,over the counter,from any local bank for a person of Jamil's financial circumstances.Discuss the position that Jamil has found himself in,particularly if he should obtain such financing,informing one purchaser of his intention to proceed,and the other two that he could not obtain funds.

Mr.Wicks,a plumber,had a contract to repair a slow leak in a toilet in Dr.Bone's medical clinic.Because it had to be done when no patients were there,Mr.Wicks agreed to come on a Saturday.However,when he got there,he found a notice on the door saying "Got a chance for a free trip to Hawaii.Come next Saturday at the same time.Thanks.Dr.Bone." Mr.Wicks did not turn up the next Saturday and,when Dr.Bone called to find out why,Mr.Wicks said he had promised to take his wife shopping that day,and he doubted if he would be able to find the time in the future.

In which of the following cases will a court order specific performance of the contract? i)Gigantic Electrical Warehouse repudiates its contract with Movie Co.to purchase 2,000 DVD players.The loss of this deal might push Movie into bankruptcy. ii.Joan,a great opera singer,decides it is too far from New York to the National Arts Centre in Ottawa and so she will not perform at the sold-out concert there next week for which she had contracted months ago. iii.Mitsuko had a contract with Refined Galleries to purchase a small Rembrandt drawing,which Refined now wants to sell to a regular and very wealthy customer.Refined will not give Mitsuko the drawing. iv.John is refusing to perform a contract to sell his house to Eli.Eli has wanted to live in that house since he was a small boy. v.Eli is refusing to perform a contract to purchase John's house.John has another purchaser but her highest offer is $10,000 less than Eli's.