Exam 9: The End of the Contractual Relationship

In a jurisdiction other than 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 the contract. Mr. Seller argued that he was not in breach, 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?

Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?

To what does the "construction approach" refer?

What is the three-part test for determining if novation has occurred?

A breaching party is responsible for all lost profits flowing from a breach of contract.

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

In all but one of the following situations, the contract is frustrated. Identify the exception.

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

Which one of the following statements accurately describes the operation of a condition precedent?

For a contract to be ended by agreement, there must be consideration as well as agreement on both sides.

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

Discuss the equitable remedies that were developed in contract law and why they were necessary.

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

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

What is the result of a repudiation?

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300M that was displayed in "Joe's Fine Cars" showroom. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?

Explain how a contract can be discharged by agreement.

Pat O'Grady owes Robinson $5,000 in cash, but resented Robinson talking about O'Grady's debt among mutual acquaintances. O'Grady wants to know which of the following tactics would be legal performance.

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that