Question 1

With respect to breached contract damages awarded,discuss the meaning of duty to mitigate.

Accepted Answer

The victim of a breached contract must d

Question 2

Gill,a wholesale fish seller,agreed to provide Blanchet's Restaurant with 1000 kilograms of fresh salmon per week throughout the months of July,August,and September.Things went as planned for July and August.However,Gill was unable to meet the requirements of the contract for the first two weeks of September because his boats simply did not catch enough,although other companies did better and the fish were available for Gill to purchase,but at a higher price than what Blanchet was paying him.Rather than sell at a loss,Gill simply did not supply during that two-week period.At the end of that period,the Federal Fisheries Department shut down the fishery altogether because of the depletion of fish.After that,no more fresh salmon was available at all.Blanchet sued Gill for breach of contract with respect to his failure to deliver any fresh salmon in September.Which one of the following statements accurately sets out the legal situation here?

Accepted Answer

A) Gill is liable for breach of contract with respect to the first two weeks of September,but the second two weeks' failure was caused by frustration for which he was not responsible. 
B) The doctrine of frustration does not apply here because this is a sale-of-goods situation. 
C) The contract was frustrated for the whole month of September by Gill's inability to obtain fish in the way that he had intended,and thus he is not liable at all. 
D) By not suing Gill as soon as he failed to deliver in the first two weeks of September,Blanchet lost the right to complain,and then the subsequent governmental closure excused Gill's failure to deliver any fish in September. 
E) Gill was under a strict obligation to supply the fish and no excuses for failure are allowed. 
A) Gill is liable for breach of contract with respect to the first two weeks of September,but the second two weeks' failure was caused by frustration for which he was not responsible. 
B) The doctrine of frustration does not apply here because this is a sale-of-goods situation. 
C) The contract was frustrated for the whole month of September by Gill's inability to obtain fish in the way that he had intended,and thus he is not liable at all. 
D) By not suing Gill as soon as he failed to deliver in the first two weeks of September,Blanchet lost the right to complain,and then the subsequent governmental closure excused Gill's failure to deliver any fish in September. 
E) Gill was under a strict obligation to supply the fish and no excuses for failure are allowed.

Question 3

Which of the following is true with regard to the law of contracts?

Accepted Answer

A) A statutory assignment is easier to enforce than an equitable assignment. 
B) Assignments are modifications of the privity of contract rule,since they do allow one person to take over the obligations of another. 
C) The assignor for value of a negotiable instrument may acquire better rights than the assignee has. 
D) A party to a contract for services can assign both his contractual obligations and his contractual rights. 
E) An employee sent by his employer to do a routine job for one of the employer's customers is in a contractual relationship with the customer. 
A) A statutory assignment is easier to enforce than an equitable assignment. 
B) Assignments are modifications of the privity of contract rule,since they do allow one person to take over the obligations of another. 
C) The assignor for value of a negotiable instrument may acquire better rights than the assignee has. 
D) A party to a contract for services can assign both his contractual obligations and his contractual rights. 
E) An employee sent by his employer to do a routine job for one of the employer's customers is in a contractual relationship with the customer.

Question 4

One of the remedies available to a victim of a contract dispute is that of an accounting.Define this.

Accepted Answer

This is an equitable remedy.An accountin

Question 5

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake,misrepresentation,undue influence,or duress.Which of the following is true with regard to these areas of the law?

Accepted Answer

A) A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his or her misrepresentation,which persuaded the buyer to buy,was true. 
B) Independent legal advice given to a person is good evidence of undue influence. 
C) If a seller persuades a person to buy something by an innocent misrepresentation,the buyer could ask for rescission and damages for the tort of deceit. 
D) Where a written document embodies the original oral agreement,a party to the contract could ask the court for the equitable remedy of rectification. 
E) An illiterate or blind person might successfully argue non est factum and avoid his or her obligations under a contract only if he or she was misled about the very nature of the document and was not careless. 
A) A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his or her misrepresentation,which persuaded the buyer to buy,was true. 
B) Independent legal advice given to a person is good evidence of undue influence. 
C) If a seller persuades a person to buy something by an innocent misrepresentation,the buyer could ask for rescission and damages for the tort of deceit. 
D) Where a written document embodies the original oral agreement,a party to the contract could ask the court for the equitable remedy of rectification. 
E) An illiterate or blind person might successfully argue non est factum and avoid his or her obligations under a contract only if he or she was misled about the very nature of the document and was not careless.

Question 6

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

Accepted Answer

A) Carson and Leno had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Leno. 
B) Barry and Mary contracted for the sale and purchase of a boat for the price of $1200.When the contract was written up,the price was incorrectly stated as $1700. 
C) Although the seller said nothing to the buyer about the characteristics of the answering machine,the buyer bought it,thinking it would tell him the date and time of the call.Later,he learned that it did not perform that function. 
D) Sarah bought three rolls of wallpaper,but found she had made a mistake; two would have been sufficient. 
E) Two parties contracted for a shipload of fish,but unknown to both parties,at the time of the contract the ship had sunk and the fish had been lost. 
A) Carson and Leno had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Leno. 
B) Barry and Mary contracted for the sale and purchase of a boat for the price of $1200.When the contract was written up,the price was incorrectly stated as $1700. 
C) Although the seller said nothing to the buyer about the characteristics of the answering machine,the buyer bought it,thinking it would tell him the date and time of the call.Later,he learned that it did not perform that function. 
D) Sarah bought three rolls of wallpaper,but found she had made a mistake; two would have been sufficient. 
E) Two parties contracted for a shipload of fish,but unknown to both parties,at the time of the contract the ship had sunk and the fish had been lost.

Question 7

What is the significance of determining that the misrepresentation was negligent rather than innocent?

Accepted Answer

The remedy of damage

Question 8

Mr.Ho talked with Mr.Tarr,who ran a business called Roscali Roofing.Ho agreed to pay Tarr $250 for the repair of his roof.In time,Gene Fix,Tarr's employee,came to Mr.Ho's and worked on the roof.Fix used the wrong material in the repairs,which made all his effort worthless; during the next rain,the roof leaked as before.Which of the following is true?

Accepted Answer

A) Ho could successfully sue Fix and Tarr for breach of contract since they were both connected with the job. 
B) Ho could successfully sue only Fix or Tarr for breach of contract,whichever he chooses,but not both. 
C) Ho could successfully sue only Tarr for breach of contract. 
D) Ho could sue only Tarr because he is the one who did a poor job on the roof. 
E) If Tarr doesn't pay Fix,Fix could sue Ho directly for his pay because he worked on Ho's roof. 
A) Ho could successfully sue Fix and Tarr for breach of contract since they were both connected with the job. 
B) Ho could successfully sue only Fix or Tarr for breach of contract,whichever he chooses,but not both. 
C) Ho could successfully sue only Tarr for breach of contract. 
D) Ho could sue only Tarr because he is the one who did a poor job on the roof. 
E) If Tarr doesn't pay Fix,Fix could sue Ho directly for his pay because he worked on Ho's roof.

Question 9

Novation is the term used when a new party is substituted for an original party to the contract.

Accepted Answer

A) True 
 B)False

Question 10

For a misrepresentation to be actionable,it must become a term of the contract.

Accepted Answer

A) True 
 B)False

Question 11

An assignee is in no better position than the original contractor.

Accepted Answer

A) True 
 B)False

Question 12

"Joe received a cheque from Sam for work he had done painting Sam's house,and Joe passed that cheque to Harry.Harry took it,not knowing that the work done was defective.Because of the principle that an assignee of contractual rights is in no better position than an assignor,Harry would not be able to demand payment on that cheque from Sam." Discuss the accuracy of this statement.

Accepted Answer

It is incorrect.Negotiable instruments a

Question 13

The equitable remedy of rectification is granted by the courts in which of the following situations?

Accepted Answer

A) The seller made a fraudulent misrepresentation that induced the buyer to buy. 
B) The parties to a contract disagree as to the meaning of a term in their contract. 
C) The seller of goods has made an innocent misrepresentation that persuaded the buyer to buy. 
D) A person buys something that he later learns he already owned. 
E) Because of a mistake,a written document does not include a corrected term to which the parties had orally agreed. 
A) The seller made a fraudulent misrepresentation that induced the buyer to buy. 
B) The parties to a contract disagree as to the meaning of a term in their contract. 
C) The seller of goods has made an innocent misrepresentation that persuaded the buyer to buy. 
D) A person buys something that he later learns he already owned. 
E) Because of a mistake,a written document does not include a corrected term to which the parties had orally agreed.

Question 14

John and Sam entered into a contract whereby John would sell auto parts from his junkyard to Sam's Auto Repair.However,they ended up in a dispute over the condition of the parts to be sold and could not agree on the meaning of terms used in the sales contract.John was invoicing Sam's Auto Repair for considerably more money than Sam thought appropriate for the used and often seriously damaged parts.When Sam paid less than the invoice amount,they ended up in a legal dispute and asked the court to interpret their contract.Which of the following is false regarding approaches the court might use to interpret the contract terms in dispute?

Accepted Answer

A) If the terms are clear and there is no ambiguity,the court might look at dictionaries for literal meanings of the terms. 
B) If the terms are clear and there is no ambiguity,the court might look at the common usage of the industry for meanings of the terms. 
C) Where there is ambiguity,the court might look at the rest of the contract to try to discern the intention of the parties. 
D) The court will supply missing terms and prices that are necessary for the contract to exist. 
E) Where there is ambiguity,the court might look to other dealings between the parties. 
A) If the terms are clear and there is no ambiguity,the court might look at dictionaries for literal meanings of the terms. 
B) If the terms are clear and there is no ambiguity,the court might look at the common usage of the industry for meanings of the terms. 
C) Where there is ambiguity,the court might look at the rest of the contract to try to discern the intention of the parties. 
D) The court will supply missing terms and prices that are necessary for the contract to exist. 
E) Where there is ambiguity,the court might look to other dealings between the parties.

Question 15

What is the importance of the distinction between a breach of warranty and a breach of condition?

Accepted Answer

When one of parties breaches a condition

Question 16

Which of the following is true with regard to remedies for breach of contract?

Accepted Answer

A) If the seller has committed a "fundamental breach" of the contract,an exemption clause absolves the seller from liability. 
B) Non est factum is an equitable remedy forcing a person to comply with the terms of the contract. 
C) The victim of a breach can recover damages that he could have avoided if he or she had tried to mitigate his or her loss. 
D) Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract,but are not awarded for a breach of a non-essential term (i.e.,a warranty). 
E) A person who breaches a contract is liable for all foreseeable loss that directly and naturally flows from the breach. 
A) If the seller has committed a "fundamental breach" of the contract,an exemption clause absolves the seller from liability. 
B) Non est factum is an equitable remedy forcing a person to comply with the terms of the contract. 
C) The victim of a breach can recover damages that he could have avoided if he or she had tried to mitigate his or her loss. 
D) Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract,but are not awarded for a breach of a non-essential term (i.e.,a warranty). 
E) A person who breaches a contract is liable for all foreseeable loss that directly and naturally flows from the breach.

Question 17

Where one party refuses to perform his or her contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

Accepted Answer

A) The first party may expressly repudiate the contract and therefore not be liable for breach. 
B) The second party may receive more damages for which he or she can't recover compensation. 
C) The first party may continue to refuse to perform,and there is nothing the second party can do about that. 
D) The contract may be discharged by frustration. 
E) The first party may breach a condition subsequent. 
A) The first party may expressly repudiate the contract and therefore not be liable for breach. 
B) The second party may receive more damages for which he or she can't recover compensation. 
C) The first party may continue to refuse to perform,and there is nothing the second party can do about that. 
D) The contract may be discharged by frustration. 
E) The first party may breach a condition subsequent.

Question 18

What is an injunction?

Accepted Answer

This is an equitable remedy av

Question 19

Which of the following statements is correct with respect to breach of contract?

Accepted Answer

A) When a contract is repudiated before performance is due,the victim must wait until the time of performance before taking any action. 
B) When a condition is breached,the victim can treat the contract as ended. 
C) When a warranty is breached,the victim can treat the contract as ended. 
D) When a contract for the purchase of goods is breached,the warranty will require that the goods be repaired by the seller. 
E) When a condition is breached,a person can only sue for damages but must perform his or her part of the contract. 
A) When a contract is repudiated before performance is due,the victim must wait until the time of performance before taking any action. 
B) When a condition is breached,the victim can treat the contract as ended. 
C) When a warranty is breached,the victim can treat the contract as ended. 
D) When a contract for the purchase of goods is breached,the warranty will require that the goods be repaired by the seller. 
E) When a condition is breached,a person can only sue for damages but must perform his or her part of the contract.

Question 20

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

Accepted Answer

A) specific performance 
B) punitive damages 
C) anticipatory breach 
D) novation 
E) repudiation 
A) specific performance 
B) punitive damages 
C) anticipatory breach 
D) novation 
E) repudiation

With respect to breached contract damages awarded,discuss the meaning of duty to mitigate.

Which of the following is true with regard to the law of contracts?

One of the remedies available to a victim of a contract dispute is that of an accounting.Define this.

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake,misrepresentation,undue influence,or duress.Which of the following is true with regard to these areas of the law?

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

What is the significance of determining that the misrepresentation was negligent rather than innocent?

Novation is the term used when a new party is substituted for an original party to the contract.

For a misrepresentation to be actionable,it must become a term of the contract.

An assignee is in no better position than the original contractor.

The equitable remedy of rectification is granted by the courts in which of the following situations?

What is the importance of the distinction between a breach of warranty and a breach of condition?

Which of the following is true with regard to remedies for breach of contract?

Where one party refuses to perform his or her contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

What is an injunction?

Which of the following statements is correct with respect to breach of contract?

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

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Torts and Professional Liability

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Exam 4: Enforcing Contractual Obligations

With respect to breached contract damages awarded,discuss the meaning of duty to mitigate.

Which of the following is true with regard to the law of contracts?

One of the remedies available to a victim of a contract dispute is that of an accounting.Define this.

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake,misrepresentation,undue influence,or duress.Which of the following is true with regard to these areas of the law?

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

What is the significance of determining that the misrepresentation was negligent rather than innocent?

Novation is the term used when a new party is substituted for an original party to the contract.

For a misrepresentation to be actionable,it must become a term of the contract.

An assignee is in no better position than the original contractor.

The equitable remedy of rectification is granted by the courts in which of the following situations?

What is the importance of the distinction between a breach of warranty and a breach of condition?

Which of the following is true with regard to remedies for breach of contract?

Where one party refuses to perform his or her contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

What is an injunction?

Which of the following statements is correct with respect to breach of contract?

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

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters