Question 1

An agreement by both sides to terminate the contract or to disregard a term of the contract is known as ________.

Accepted Answer

The answer of An agreement by both sides to terminate...

Question 2

When an anticipatory breach has taken place (where a person, before performance is due, states that he will not perform the contract)

Accepted Answer

A)  the victim must wait to see if the contract is performed, but damages are calculated from the time of the refusal. 
B)  the victim may not be able to recover damages that occur after the anticipatory breach. 
C)  such a statement made before performance is due has no effect on the contractual obligations of the parties. 
D)  the victim may sue immediately and not wait to see if the contract is performed or not. 
E)  the victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
A)  the victim must wait to see if the contract is performed, but damages are calculated from the time of the refusal. 
B)  the victim may not be able to recover damages that occur after the anticipatory breach. 
C)  such a statement made before performance is due has no effect on the contractual obligations of the parties. 
D)  the victim may sue immediately and not wait to see if the contract is performed or not. 
E)  the victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more.

Question 3

Suppliers of goods and services try to eliminate their liability, and the courts have discouraged this by applying the principle that some failures are so significant that there is no performance of the contract. This concept is known as

Accepted Answer

A)  repudiation. 
B)  exculpatory clause. 
C)  fundamental breach. 
D)  frustration. 
E)  anticipatory breach. 
A)  repudiation. 
B)  exculpatory clause. 
C)  fundamental breach. 
D)  frustration. 
E)  anticipatory breach.

Question 4

"For a contract to be frustrated, performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Accepted Answer

It's inaccurate. It still may

Question 5

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

Accepted Answer

A)  Razmin has breached the contract by failing to deliver the sculpture. 
B)  Connie will still need to pay Razmin the same price agreed to in the contract, because the fire was not Razmin's fault. 
C)  Razmin can simply provide a different sculpture to satisfy the contract. 
D)  The contract is void. 
E)  The contract has been discharged through frustration. 
A)  Razmin has breached the contract by failing to deliver the sculpture. 
B)  Connie will still need to pay Razmin the same price agreed to in the contract, because the fire was not Razmin's fault. 
C)  Razmin can simply provide a different sculpture to satisfy the contract. 
D)  The contract is void. 
E)  The contract has been discharged through frustration.

Question 6

Rick was a talented computer programmer and had agreed to work for Bill in his successful computer software business, signing a one-year contract to that effect. On the day he was to start work, and after a week of training where he learned a considerable amount of confidential information about Bill's operation, he phoned Bill and announced that he was going to work for Bill's competitor instead. Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  Rescission 
B)  Injunction 
C)  Specific performance 
D)  Accounting 
E)  No remedy 
A)  Rescission 
B)  Injunction 
C)  Specific performance 
D)  Accounting 
E)  No remedy

Question 7

Carson arranged with his brother-in-law, Waxman, that he would try to buy a famous old B.C. coastal airplane, the Spruce Ghost, which Waxman would then buy from him to display in his flight museum. Waxman promised to pay Carson a 10% commission over the price that Carson had to pay to buy the plane, so that their price would be 110% of Carson's purchase price. Carson and the owner, Wonka, agreed on a price of $80,000. After reconditioning the plane but before delivering it to Carson, Wonka decided to take it up for one last nostalgic flight and, because of his carelessness, he crashed it on take-off. Although Wonka escaped uninjured, the plane caught fire and was totally destroyed. Carson was able to locate a similar plane for only $60,000 but Waxman wasn't interested. Carson sued his brother-in-law and Wonka. What is the likely outcome of this suit?

Accepted Answer

A)  Wonka will have to pay Carson damages (probably $8,000) for breach of contract. 
B)  Waxman will have to pay Carson $6,000 as the commission he would have made on the purchase of the second plane. 
C)  Waxman will have to pay Carson $8,000, the commission on the agreed sale price between Carson and Wonka. 
D)  Because the contract between Carson and Wonka was frustrated by the destruction of the Spruce Ghost, Carson has no claim against anyone. 
E)  The Frustrated Contracts Act will require Carson to share in the expense of reconditioning the Spruce Ghost that Wonka had undertaken in preparation for sale. 
A)  Wonka will have to pay Carson damages (probably $8,000) for breach of contract. 
B)  Waxman will have to pay Carson $6,000 as the commission he would have made on the purchase of the second plane. 
C)  Waxman will have to pay Carson $8,000, the commission on the agreed sale price between Carson and Wonka. 
D)  Because the contract between Carson and Wonka was frustrated by the destruction of the Spruce Ghost, Carson has no claim against anyone. 
E)  The Frustrated Contracts Act will require Carson to share in the expense of reconditioning the Spruce Ghost that Wonka had undertaken in preparation for sale.

Question 8

In 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?

Accepted Answer

A)  Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract. 
B)  The court will treat the contract as if there were a common mistake about the existence of the subject matter. 
C)  The court will let the losses lie where they fell, despite any of Seller's costs in preparing the computer system. 
D)  Buyer will succeed against Seller for damages because the court will treat it as if were an anticipatory breach. 
E)  The court will look at the costs incurred and any payments made, and will apportion the losses between the parties. 
A)  Buyer will not have to pay anything to Seller unless Seller had requested a deposit at the time of contract. 
B)  The court will treat the contract as if there were a common mistake about the existence of the subject matter. 
C)  The court will let the losses lie where they fell, despite any of Seller's costs in preparing the computer system. 
D)  Buyer will succeed against Seller for damages because the court will treat it as if were an anticipatory breach. 
E)  The court will look at the costs incurred and any payments made, and will apportion the losses between the parties.

Question 9

The courts will grant an order of specific performance to compel performance of a contract for personal services.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract. 
C)  Damages are awarded for a breach of a condition (essential term), but not for a breach of a warranty (non-essential term). 
D)  The quantum (amount) of damages to be given to the victim of the breach depends on the knowledge of the party who breached the contract. Knowledge includes imputed and actual knowledge. 
E)  An injunction is the proper remedy to stop a person from doing something that he had promised in the contract not to do, e.g., not to compete, not to disclose secrets, etc. 
A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract. 
C)  Damages are awarded for a breach of a condition (essential term), but not for a breach of a warranty (non-essential term). 
D)  The quantum (amount) of damages to be given to the victim of the breach depends on the knowledge of the party who breached the contract. Knowledge includes imputed and actual knowledge. 
E)  An injunction is the proper remedy to stop a person from doing something that he had promised in the contract not to do, e.g., not to compete, not to disclose secrets, etc.

Question 11

Which of the following is true with regard to tender of performance?

Accepted Answer

A)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
B)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline. 
C)  If the seller attempts to deliver the contract goods at the time and place designated in the contract, but the buyer refuses delivery, the seller will have to make another attempt to deliver before he can sue for breach of contract. 
D)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
E)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
A)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
B)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline. 
C)  If the seller attempts to deliver the contract goods at the time and place designated in the contract, but the buyer refuses delivery, the seller will have to make another attempt to deliver before he can sue for breach of contract. 
D)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
E)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract.

Question 12

Explain the injunction as it is available in contract law.

Accepted Answer

The breaching party is ordered

Question 13

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

Accepted Answer

A)  Thornburn agreed to buy Patterson's tulip crop, but unknown to both of them, at the time of the contract the crop had been destroyed by the frost. 
B)  Mellowcream Ltd. contracted to deliver 40 dozen donuts to Pat's Place, but called Pat and told her it couldn't deliver because another customer needed another 40 dozen for an unexpected event. 
C)  Lowe contracted to purchase a business from Lerner, but the interest rates jumped so quickly that, even before closing, he realized he would lose money, so he told Lerner he couldn't go ahead with it. 
D)  Lee Ltd. agrees to haul lumber for Len Lumberjack, but a few days before the delivery date the company's best truck, the one they wanted to use, broke down. 
E)  N. Yung contracts to give a performance at B.C. Place stadium, but the performance was cancelled because he was poisoned by contaminated food at a local restaurant. 
A)  Thornburn agreed to buy Patterson's tulip crop, but unknown to both of them, at the time of the contract the crop had been destroyed by the frost. 
B)  Mellowcream Ltd. contracted to deliver 40 dozen donuts to Pat's Place, but called Pat and told her it couldn't deliver because another customer needed another 40 dozen for an unexpected event. 
C)  Lowe contracted to purchase a business from Lerner, but the interest rates jumped so quickly that, even before closing, he realized he would lose money, so he told Lerner he couldn't go ahead with it. 
D)  Lee Ltd. agrees to haul lumber for Len Lumberjack, but a few days before the delivery date the company's best truck, the one they wanted to use, broke down. 
E)  N. Yung contracts to give a performance at B.C. Place stadium, but the performance was cancelled because he was poisoned by contaminated food at a local restaurant.

Question 14

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

Accepted Answer

A)  If the court holds that the liquidated damages clause in the contract is an honest attempt to estimate damages, the amount stated will be forfeited to the victim of the breach, even if he suffered no loss in fact. 
B)  A person who disobeys a court order, e.g., an order for specific performance, can be cited for contempt of court. 
C)  Damages are awarded by the court to a person who has suffered loss because of a breach of a condition of the contract, but are not awarded for a breach of a warranty. 
D)  As a general rule, a person who breaches a contract is liable for all of the foreseeable loss that directly and naturally flows from the breach. 
E)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
A)  If the court holds that the liquidated damages clause in the contract is an honest attempt to estimate damages, the amount stated will be forfeited to the victim of the breach, even if he suffered no loss in fact. 
B)  A person who disobeys a court order, e.g., an order for specific performance, can be cited for contempt of court. 
C)  Damages are awarded by the court to a person who has suffered loss because of a breach of a condition of the contract, but are not awarded for a breach of a warranty. 
D)  As a general rule, a person who breaches a contract is liable for all of the foreseeable loss that directly and naturally flows from the breach. 
E)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss.

Question 15

The case of Shelanu Inc. v. Print Three Franchising Corporation involved a case whether a franchisor had a duty of good faith to the franchisee. What did the Court of Appeal hold?

Accepted Answer

A)  The breach was considered inconsequential at law. 
B)  The plaintiff was not entitled to terminate the franchise agreement since the franchisor had not breached their duty of good faith. 
C)  The plaintiff was entitled to terminate the franchise agreement since the franchisor had breached their duty of good faith. 
D)  The plaintiff was entitled to terminate the franchise agreement since there was no breach of the duty of good faith. 
E)  The plaintiff was entitled to terminate the franchise agreement since there was a breach of the duty of good faith. 
A)  The breach was considered inconsequential at law. 
B)  The plaintiff was not entitled to terminate the franchise agreement since the franchisor had not breached their duty of good faith. 
C)  The plaintiff was entitled to terminate the franchise agreement since the franchisor had breached their duty of good faith. 
D)  The plaintiff was entitled to terminate the franchise agreement since there was no breach of the duty of good faith. 
E)  The plaintiff was entitled to terminate the franchise agreement since there was a breach of the duty of good faith.

Question 16

A condition subsequent is an example of a contract being ended by agreement.

Accepted Answer

A) True 
 B)False

Question 17

Distinguish between a down payment and a deposit.

Accepted Answer

A down payment is merely the first payme

Question 18

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Accepted Answer

A)  The exemption clause that covers the situation was posted in plain view and was brought to their attention at the place and time of contract. 
B)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
C)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
D)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
E)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
A)  The exemption clause that covers the situation was posted in plain view and was brought to their attention at the place and time of contract. 
B)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
C)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
D)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
E)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page.

Question 19

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

Accepted Answer

A)  This occurs when some event that the parties have not anticipated makes performance radically different from what they agree to. 
B)  This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract. 
C)  This is a term in a contract that must be met before the contract becomes fully operational. 
D)  There is no such thing recognized in the common law. 
E)  This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event. 
A)  This occurs when some event that the parties have not anticipated makes performance radically different from what they agree to. 
B)  This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract. 
C)  This is a term in a contract that must be met before the contract becomes fully operational. 
D)  There is no such thing recognized in the common law. 
E)  This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event.

Question 20

Harry agreed to make a new violin for Ted at a particularly attractive price. Before he finished crafting it, however, an opportunity arose to work as a salesman for "Joe's Fine Cars." Since it was clear that he could never make a living as a violin maker, he took the job and refused to finish the violin for Ted. Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  No remedy 
B)  Injunction 
C)  Specific performance 
D)  Rescission 
E)  Damages 
A)  No remedy 
B)  Injunction 
C)  Specific performance 
D)  Rescission 
E)  Damages

An agreement by both sides to terminate the contract or to disregard a term of the contract is known as ________.

When an anticipatory breach has taken place (where a person, before performance is due, states that he will not perform the contract)

Suppliers of goods and services try to eliminate their liability, and the courts have discouraged this by applying the principle that some failures are so significant that there is no performance of the contract. This concept is known as

"For a contract to be frustrated, performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

The courts will grant an order of specific performance to compel performance of a contract for personal services.

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

Which of the following is true with regard to tender of performance?

Explain the injunction as it is available in contract law.

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

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

The case of Shelanu Inc. v. Print Three Franchising Corporation involved a case whether a franchisor had a duty of good faith to the franchisee. What did the Court of Appeal hold?

A condition subsequent is an example of a contract being ended by agreement.

Distinguish between a down payment and a deposit.

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

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

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

Exam 9: The End of the Contractual Relationship

An agreement by both sides to terminate the contract or to disregard a term of the contract is known as ________.

When an anticipatory breach has taken place (where a person, before performance is due, states that he will not perform the contract)

Suppliers of goods and services try to eliminate their liability, and the courts have discouraged this by applying the principle that some failures are so significant that there is no performance of the contract. This concept is known as

"For a contract to be frustrated, performance of the contractual obligation must be impossible." Discuss the accuracy of that statement.

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

The courts will grant an order of specific performance to compel performance of a contract for personal services.

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

Which of the following is true with regard to tender of performance?

Explain the injunction as it is available in contract law.

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

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

The case of Shelanu Inc. v. Print Three Franchising Corporation involved a case whether a franchisor had a duty of good faith to the franchisee. What did the Court of Appeal hold?

A condition subsequent is an example of a contract being ended by agreement.

Distinguish between a down payment and a deposit.

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

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

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