Exam 4: Enforceability of Contractual Rights

An expert landscape architect,known for special skill in designing Japanese gardens,is engaged under contract by a municipality for the creation of a public park with a Japanese theme.The architect becomes unable to fulfil the obligation,but to the satisfaction of the municipality can name a replacement architect who will agree to execute the same work on the same terms.The legal mechanism required to effect this will be an equitable assignment.

Randy,an avid hunter,wishes to build a hunting cabin to use with a companion during hunting season.He travelled around the area and found a farm that had an ideal piece of land.Randy telephoned the farmer and asked to meet him over coffee.Bob,the farmer,decided to sell Randy the lot for $3,000.Randy agreed,handing Bob $500 in cash as a deposit.When Randy arrived for hunting season,three months later having erected a cabin in the summer,he offered Bob another $1,000 toward the purchase price.However,Bob has decided that he no longer wishes to sell the land,and informs Randy he will have to tear down his building.Bob tells Randy that he can do this because they did not have a written agreement. Apply the four criteria of the doctrine of part performance to the circumstances and explain their relevance to both Randy's arguments and Bob's defence.

Sara purchased an old glass vase that Rina represented as an antique made by a famous Italian glassmaker in the 17th century.As proof of its authenticity,Rina produced an old paper with a rough sketch of the vase on it,along with some writing,and what appeared to be the glassmaker's name.Sara later sold the vase to Lise,after telling Lise the story of the vase as told to her by Rina.After Lise purchased the vase,she discovered it to be a reproduction of the original,and of very little value. -The contract is voidable by Lise on the basis of innocent misrepresentation.

Susan,who is functionally illiterate,asks her friend Jane to read a document aloud to her.She is to sign it in order to purchase chinchillas from Patricia to start a breeding farm.Actually it is a deed transferring ownership of Susan's farm to Patricia and,unknown to Susan,Patricia and Jane have made a secret agreement to sell the farm and share the proceeds. -Since Susan did what was reasonable to deal with her own inability to read,she could raise the defence of non est factum to an action by Patricia to get possession of the farm.

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss. -Audrey agrees verbally to do some repair work on the retaining walls in Douglas's terraced gardens.After she has turned down another contract from someone else,Douglas tells her he has changed his mind.It is now too late to get the other contract.Since the contract concerning the work on Douglas's land was a verbal one,Audrey cannot enforce it due to the Statute of Frauds.

Given the degree to which courts are willing to enforce contracts subject to mutual mistake,cases of this sort tend to place greater hardship upon defendants than plaintiffs.

Hammond sells her house to Mendoza for $165,000 subject to a mortgage from Imperial Bank for $90,000.Hammond's mortgage had been arranged at a time when interest rates were low,and prevailing interest rates are now much higher.Mendoza would very much like to assume Hammond's obligation to pay under the existing mortgage,rather than arrange a more costly replacement from his own banker.Imperial Bank is indifferent as to who is repaying the debt as Mendoza is just as acceptable a credit risk as was Hammond.Mendoza pays Hammond the $75,000 difference and takes over both the house and her mortgage.This arrangement is an example of

Bildit Construction Co.was building a large condominium complex in two phases.Phase 1 was to commence immediately and construction of Phase 2 would get underway once a minimum of 50 percent of the Phase 1 units had been presold.Bildit had asked for bids for certain aspects of the construction project.Peters had bid on the stucco work and Kelvin on the drywall.Both bids were accepted by Bildit and the respective contracts awarded.Moreover,Bildit used the bids to prepare its budgeting for the project and to acquire its financing. Shortly after commencement of Phase 1,Peters ran into financial difficulties and was forced to withdraw from the project.Bildit then approached Kelvin with a request for a bid on the work that Peters could no longer complete.Bildit emphasised the urgency to move on with Phase 1,which was falling behind schedule,and requested Kelvin's bid as quickly as possible.Kelvin believed from the conversations it had with various representatives of Bildit that it was to quote only on Phase 1.Bildit accepted Kelvin's bid as it was very close to the prior bid of Peters. Sometime later it became apparent that Bildit expected Kelvin to do all of the stucco work on both phases of the project for the bid price.The president of Kelvin contacted the president of Peters to inquire what Peters had understood the bid terms to be.Peters's president replied that he had been unclear at the time just what he was bidding on but that he had submitted a bid for one phase only.In fact,he mentioned to Kelvin's president that if Bildit had taken even a brief look at his bid,it would have realized that the bid would have been substantially below cost if it were for both phases.After this conversation,Kelvin undertook the further work on Phase 2 but insisted on additional payment. Bildit contended that the bid was to be for both phases,and brought legal action for breach of contract against Kelvin.Kelvin countered with a claim for the money owing for Phase 2.Discuss the legal issues that arise as a result of these facts and the principles of law each party will rely on.

The Auto Garage advertised vehicle repairs by "licensed mechanics." Tony,a car owner,took his vehicle to Auto for repairs.The garage owner,Xavier,examined the car,and indicated that extensive repairs were required.Tony left his car with Xavier,and the repairs were carried out by another licensed mechanic,Rick,an employee.Tony paid $150 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine. -Auto is liable to Tony under the vicarious performance rule for Rick's negligence.

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner. -It will be up to Sarah to prove on the balance of probabilities that she was unduly influenced by Tom Takeitall.

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob. -Mr.Parfait was teaching his son,Jacques,to drive in the family car when Jacques failed to apply his brakes soon enough and hit the car in front,causing considerable damage.Mr.Bouchard,the driver of the other car,should get Mr.Parfait's promise to pay for his repairs in writing or it will be unenforceable.

Undue influence is not the same legal concept as duress.Despite this,both constitute grounds for rescission by the affected party.

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting. -The gallery can successfully answer all of Ravi's case by raising the parol evidence rule.

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner. -Diana receives a phone call late one night from Robert,her former husband.He said that,if she does not agree in writing to drop her action for support to put herself through university,he will distribute copies of compromising photographs he took of her when they were married.Diana signs the agreement under seal.This is a clear case of duress.

Anne met Adriana while shopping,and in the course of conversation,mentioned that she had a motorcycle for sale.Adriana was familiar with Anne's motorcycle,and offered to purchase it for $500.Anne accepted the offer,and Anne and Adriana walked to Anne's home to get the motorcycle.When they reached Anne's house,they were told by Anne's father that the motorcycle had been stolen earlier in the day,and was subsequently found by the police in a badly damaged condition in a local stone quarry. -Anne and Adriana made a valid contract,and Anne must deliver to Adriana the motorcycle in the condition that it was in before it was stolen.

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss. -Joyce's promise is called an indemnity.

Dick and Jane agree that Susie must pay each of them $10 per month.They sign a contract and show it to Susie,who makes no objection to it.Neither Dick nor Jane may enforce the contract against Susie if she fails to pay.

Anne met Adriana while shopping,and in the course of conversation,mentioned that she had a motorcycle for sale.Adriana was familiar with Anne's motorcycle,and offered to purchase it for $500.Anne accepted the offer,and Anne and Adriana walked to Anne's home to get the motorcycle.When they reached Anne's house,they were told by Anne's father that the motorcycle had been stolen earlier in the day,and was subsequently found by the police in a badly damaged condition in a local stone quarry. -Adriana may avoid the contract on the basis that the parties had made a mistake as to the existence of the subject matter.

Sylvia obtained a full release from the payment of her car loan when she gave the car to her friend Victoria,who agreed to make all the remaining payments.The arrangement was acceptable to the bank that had made the loan.The bank cancelled the loan and replaced it with one in Victoria's name.This is

While Connor was visiting his physician,he mentioned to him that he wished to sell his expensive sailboat.The physician expressed an interest in buying the boat,and offered to pay Conner $10,000 for it.Conner had intended to advertise the boat for $12,000 in the local newspaper,but agreed to sell it to the physician for $10,000.Some weeks after the boat had been sold,Conner wished to avoid the contract. -In this case,the physician would be obliged to prove that there was no undue influence on his part.