Question 1

Explain what is meant by an accounting as a remedy in contract law.

Accepted Answer

The accounting is a remedy whereby the c

Question 2

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 3

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10,000 to be forfeited in the event of Mike's failing to go through with the deal. This deposit was an honest estimate of the damages Rita would suffer. On these facts, which of the following is true?

Accepted Answer

A)  If Mike breaches the contract, he will have to pay Rita all the damages that directly and naturally flow from the breach. 
B)  If Mike breaches the contract, he would have to pay $10,000 even if Rita's actual loss was $40,000. 
C)  A clause in a contract that provides for the forfeiture of a deposit is called an exemption clause. 
D)  If Mike breaches the contract, he would not have to pay $10,000 even if Rita suffered a substantial loss. 
E)  If the contract price agreed upon was $150,000 and Rita, after Mike breaches the contract, sells the house in one week for $138,000, she will still be able to recoup all her losses. 
A)  If Mike breaches the contract, he will have to pay Rita all the damages that directly and naturally flow from the breach. 
B)  If Mike breaches the contract, he would have to pay $10,000 even if Rita's actual loss was $40,000. 
C)  A clause in a contract that provides for the forfeiture of a deposit is called an exemption clause. 
D)  If Mike breaches the contract, he would not have to pay $10,000 even if Rita suffered a substantial loss. 
E)  If the contract price agreed upon was $150,000 and Rita, after Mike breaches the contract, sells the house in one week for $138,000, she will still be able to recoup all her losses.

Question 4

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

Remoteness, where the contracting party

Question 5

"In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of that statement.

Accepted Answer

The statement is inaccurate. A warranty

Question 6

Lack of financial ability, if proven, will establish frustration.

Accepted Answer

A) True 
 B)False

Question 7

Explain what is meant by specific performance in contract law.

Accepted Answer

This is an order by the courts

Question 8

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 agree to call off the contract under which one paid the other $5,000 for work that has not yet been performed, but the other now promises to return the $5,000. 
C)  Both parties to the contract agree to call it off before either one has performed. 
D)  A condition subsequent that calls for termination of the contract has not been met. 
E)  The two parties have reached "accord and satisfaction" with regard to terminating the contract. 
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 agree to call off the contract under which one paid the other $5,000 for work that has not yet been performed, but the other now promises to return the $5,000. 
C)  Both parties to the contract agree to call it off before either one has performed. 
D)  A condition subsequent that calls for termination of the contract has not been met. 
E)  The two parties have reached "accord and satisfaction" with regard to terminating the contract.

Question 9

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

Accepted Answer

When goods or services are involved, the

Question 10

A contract is terminated by agreement in which of the following situations:

Accepted Answer

A)  The occurrence of a condition subsequent 
B)  Unilateral release 
C)  Breach 
D)  A written statement by one party to cancel an accepted order 
E)  Frustration 
A)  The occurrence of a condition subsequent 
B)  Unilateral release 
C)  Breach 
D)  A written statement by one party to cancel an accepted order 
E)  Frustration

Question 11

When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?

Accepted Answer

That party is bound by the cho

Question 12

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 13

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Accepted Answer

A)  This clause conclusively determines the amount of damages that the court can award. 
B)  This clause requires the injured party to take all reasonable steps to mitigate (lessen) his losses. 
C)  Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves. 
D)  The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow" from the breach. 
E)  The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of the breach. 
A)  This clause conclusively determines the amount of damages that the court can award. 
B)  This clause requires the injured party to take all reasonable steps to mitigate (lessen) his losses. 
C)  Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves. 
D)  The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow" from the breach. 
E)  The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of the breach.

Question 14

What is the usual impact of an exemption clause in the event of fundamental breach?

Accepted Answer

It is usually ineffective in t

Question 15

Dubocovich had contracted to supply a health-food store with jars of Melatonin, a hormone reported in the media as a miracle potion. After they contracted, but before delivery, the government banned the sale of Melatonin so that it could be properly tested under government auspices. Dubocovich told the owner of the store, Mr. Wei, that he wouldn't be delivering the Melatonin because of the government ban. The demand for the Melatonin was high. Mr. Wei was very upset with Dubocovich for failing to honour his contractual obligations. Furthermore, he had given Dubocovich $5,000 in advance, which Dubocovich needed and used to pay the freight costs in bringing the drug to his warehouse. Wei sued Dubocovich for breach of contract. Which of the following is correct with respect to the legal position of the parties?

Accepted Answer

A)  This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen. 
B)  When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party. 
C)  Wei will be successful in his breach of contract action. 
D)  The contract is illegal and void. 
E)  Wei will be able to get back his $5,000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract. 
A)  This is an example of a frustrated contract and Wei will lose, since the loss will remain where it has fallen. 
B)  When a contract is frustrated in this way, the frustrating party is responsible for any losses incurred by the other party. 
C)  Wei will be successful in his breach of contract action. 
D)  The contract is illegal and void. 
E)  Wei will be able to get back his $5,000 minus a portion of any costs Dubocovich incurred in preparing to perform the contract.

Question 16

When a court determines that a breach of contract has taken place and awards damages, what is the purpose of such an award?

Accepted Answer

To provide compensat

Question 17

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 18

When a contract has been performed in all but a minor aspect of it, this is known as ________.

Accepted Answer

Substantia

Question 19

In which of the following is the contract not ended by agreement?

Accepted Answer

A)  Goode contracted to sell his pony to Reston. Goode then changed his mind and told Reston he didn't want to sell the pony but would give him two lambs instead. Reston agreed to the substitutes. 
B)  Randy visited Terry two weeks after the contract but one month before performance date to say he wouldn't do it. Terry had already paid Randy for the work. After hearing Randy's story, Terry said, "Just forget it, good bye and good luck." 
C)  Sean hired two students to do a market survey for him for $3,000. Before the students had begun the work, they both had received offers for full time jobs. They told Sean they wanted out of the contract. Sean said, "O.K., I'm short of cash anyway." 
D)  After party A of the contract paid, party B said he couldn't perform. Party A agreed to waive B's obligation if B would return the money paid to him. B agreed. 
E)  The event contained in the condition subsequent provision of the contract has happened. 
A)  Goode contracted to sell his pony to Reston. Goode then changed his mind and told Reston he didn't want to sell the pony but would give him two lambs instead. Reston agreed to the substitutes. 
B)  Randy visited Terry two weeks after the contract but one month before performance date to say he wouldn't do it. Terry had already paid Randy for the work. After hearing Randy's story, Terry said, "Just forget it, good bye and good luck." 
C)  Sean hired two students to do a market survey for him for $3,000. Before the students had begun the work, they both had received offers for full time jobs. They told Sean they wanted out of the contract. Sean said, "O.K., I'm short of cash anyway." 
D)  After party A of the contract paid, party B said he couldn't perform. Party A agreed to waive B's obligation if B would return the money paid to him. B agreed. 
E)  The event contained in the condition subsequent provision of the contract has happened.

Question 20

Explain what is meant by an anticipatory breach.

Accepted Answer

This is where one of the parti

Explain what is meant by an accounting as a remedy in contract law.

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

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10,000 to be forfeited in the event of Mike's failing to go through with the deal. This deposit was an honest estimate of the damages Rita would suffer. On these facts, which of the following is true?

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.

"In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of that statement.

Lack of financial ability, if proven, will establish frustration.

Explain what is meant by specific performance in contract law.

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

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

A contract is terminated by agreement in which of the following situations:

When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

What is the usual impact of an exemption clause in the event of fundamental breach?

When a court determines that a breach of contract has taken place and awards damages, what is the purpose of such an award?

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

When a contract has been performed in all but a minor aspect of it, this is known as ________.

In which of the following is the contract not ended by agreement?

Explain what is meant by an anticipatory breach.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

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Exam 9: The End of the Contractual Relationship

Explain what is meant by an accounting as a remedy in contract law.

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

Mike contracted to buy Rita's house in a written contract that provided for a deposit of $10,000 to be forfeited in the event of Mike's failing to go through with the deal. This deposit was an honest estimate of the damages Rita would suffer. On these facts, which of the following is true?

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.

"In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of that statement.

Lack of financial ability, if proven, will establish frustration.

Explain what is meant by specific performance in contract law.

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

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

A contract is terminated by agreement in which of the following situations:

When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

What is the usual impact of an exemption clause in the event of fundamental breach?

When a court determines that a breach of contract has taken place and awards damages, what is the purpose of such an award?

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

When a contract has been performed in all but a minor aspect of it, this is known as ________.

In which of the following is the contract not ended by agreement?

Explain what is meant by an anticipatory breach.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters