Question 1

The principle of substantial performance can best be described as

Accepted Answer

A)  minor terms of the contract are disregarded. 
B)  only exact compliance with the contract will qualify as performance. 
C)  a major term of the contract is mostly fulfilled. 
D)  all or most of contractual obligations are fulfilled. 
E)  minor terms of the contract are yet to be fulfilled. 
A)  minor terms of the contract are disregarded. 
B)  only exact compliance with the contract will qualify as performance. 
C)  a major term of the contract is mostly fulfilled. 
D)  all or most of contractual obligations are fulfilled. 
E)  minor terms of the contract are yet to be fulfilled.

Question 2

Jones ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit?

Accepted Answer

A)  If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference. 
B)  A down-payment is an amount of money to be forfeited if either party is in breach of contract. 
C)  The deposit must be a fair reflection of the loss actually suffered. 
D)  The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach. 
E)  If no deposit had been paid, there could be no contract. 
A)  If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference. 
B)  A down-payment is an amount of money to be forfeited if either party is in breach of contract. 
C)  The deposit must be a fair reflection of the loss actually suffered. 
D)  The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach. 
E)  If no deposit had been paid, there could be no contract.

Question 3

The case of Romfo v. 1216393 involved an order of specific performance and liquidated damages. What did the Court of Appeal hold?

Accepted Answer

A)  The breach was considered inconsequential at law. 
B)  The contract had been substantially performed and the damages were limited to the liquidated damages. 
C)  The deposit clauses were upheld. The vendors were required to transfer the lots to the initial purchasers at the new, higher price. 
D)  The contract had not been perfectly performed, so the contract was void. 
E)  The deposit clauses were severed and the contracts enforced. The vendors were required to transfer the lots to the initial purchasers at the original price.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 
A)  The breach was considered inconsequential at law. 
B)  The contract had been substantially performed and the damages were limited to the liquidated damages. 
C)  The deposit clauses were upheld. The vendors were required to transfer the lots to the initial purchasers at the new, higher price. 
D)  The contract had not been perfectly performed, so the contract was void. 
E)  The deposit clauses were severed and the contracts enforced. The vendors were required to transfer the lots to the initial purchasers at the original price.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

Question 4

Which of the following is false with regard to ending contracts and remedies?

Accepted Answer

A)  The term "condition precedent" refers to a clause in a contract that brings the contractual obligations of the parties to an end upon the happening of some specific event. 
B)  A breach of condition allows the party who suffers the breach to terminate the contract. 
C)  The equitable remedy of specific performance is available in those situations where monetary compensation would not be adequate. 
D)  If a person ignores a court order, e.g., an injunction, he could be cited for contempt of court. 
E)  If Sid incurred costs in preparing to perform a contract that is ended by frustration, the court can allow Sid to keep some of the deposit paid by the other party to help cover those costs. 
A)  The term "condition precedent" refers to a clause in a contract that brings the contractual obligations of the parties to an end upon the happening of some specific event. 
B)  A breach of condition allows the party who suffers the breach to terminate the contract. 
C)  The equitable remedy of specific performance is available in those situations where monetary compensation would not be adequate. 
D)  If a person ignores a court order, e.g., an injunction, he could be cited for contempt of court. 
E)  If Sid incurred costs in preparing to perform a contract that is ended by frustration, the court can allow Sid to keep some of the deposit paid by the other party to help cover those costs.

Question 5

A deposit must be returned if no damage has taken place.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Accepted Answer

A) True 
 B)False

Question 6

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)  Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves. 
B)  The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow from the breach." 
C)  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 a breach. 
D)  This clause requires the injured party to take all reasonable steps to lessen (mitigate) his losses. 
E)  The court will award the amount specified only if it accurately reflects the losses that actually took place. 
A)  Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves. 
B)  The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow from the breach." 
C)  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 a breach. 
D)  This clause requires the injured party to take all reasonable steps to lessen (mitigate) his losses. 
E)  The court will award the amount specified only if it accurately reflects the losses that actually took place.

Question 7

If a supplier failed to honour a contract to supply parts to Mr. Matheson and the court finds the supplier in breach of contract, which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?

Accepted Answer

A)  If a deposit is involved, the damages will be restricted to that deposit. 
B)  The supplier would not be responsible for any unusual losses lost by Mr. Matheson because of some special use not told to the supplier. 
C)  Liquidated damages must be an honest attempt by the parties to pre-estimate damages. 
D)  The victim of the breach must take all reasonable steps to keep those damages as low as possible. 
E)  The supplier is responsible for all damages suffered by Matheson. 
A)  If a deposit is involved, the damages will be restricted to that deposit. 
B)  The supplier would not be responsible for any unusual losses lost by Mr. Matheson because of some special use not told to the supplier. 
C)  Liquidated damages must be an honest attempt by the parties to pre-estimate damages. 
D)  The victim of the breach must take all reasonable steps to keep those damages as low as possible. 
E)  The supplier is responsible for all damages suffered by Matheson.

Question 8

Mikael recently started a home-based business selling custom fishing lures. He decided that he could make a lot more money selling his homemade lures on the Internet. Mikael is not the least bit technologically-inclined, but he knows that his next-door neighbour, Perm, does web design on the side. He decides to hire her to create a website for his new venture. Perm has him sign an agreement that includes an exemption clause that limits her liability in cases of negligence. In the course of designing the website, Perm becomes annoyed at Mikael because his dog keeps digging up her rose bushes. Rather than confront Mikael directly, Perm deliberately puts the wrong pricing information on Mikael's website to get him back. If Mikael suffered damages as a result and wanted to sue Perm, what would the likely result be?

Accepted Answer

A)  The exemption clause would protect Perm because of the principle of "freedom to contract". 
B)  Perm only did freelance web design; as a non-professional she would not face liability. 
C)  The exemption clause would be severed as being an illegal restraint of trade. 
D)  Perm's actions were outside the scope of the contract, so Mikael would have no claim in law. 
E)  Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause. 
A)  The exemption clause would protect Perm because of the principle of "freedom to contract". 
B)  Perm only did freelance web design; as a non-professional she would not face liability. 
C)  The exemption clause would be severed as being an illegal restraint of trade. 
D)  Perm's actions were outside the scope of the contract, so Mikael would have no claim in law. 
E)  Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause.

Question 9

When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a

Accepted Answer

A)  condition precedent. 
B)  frustration clause. 
C)  "subject to" clause. 
D)  force majeure clause. 
E)  condition subsequent. 
A)  condition precedent. 
B)  frustration clause. 
C)  "subject to" clause. 
D)  force majeure clause. 
E)  condition subsequent.

Question 10

Explain the principle of mitigation in contract law.

Accepted Answer

The victim of a breach of contract has a

Question 11

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

Accepted Answer

A)  A contract ends by agreement when the parties include in the contract a "condition subsequent," i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place. 
B)  If a person properly tenders performance of a service that is rejected by the other party, he is not required to try again. 
C)  A person has not legally tendered performance if he pays a $500 debt in 25-cent coins. 
D)  A contract can be ended by breach only if there was a breach of condition, not a breach of warranty. 
E)  If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off. 
A)  A contract ends by agreement when the parties include in the contract a "condition subsequent," i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place. 
B)  If a person properly tenders performance of a service that is rejected by the other party, he is not required to try again. 
C)  A person has not legally tendered performance if he pays a $500 debt in 25-cent coins. 
D)  A contract can be ended by breach only if there was a breach of condition, not a breach of warranty. 
E)  If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off.

Question 12

Discuss how and why promissory estoppel might come into play when a contract is being discharged or changed by agreement.

Accepted Answer

Promissory estoppel is one of the most d

Question 13

"Clean hands" refers to the absence of wrongdoing on the part of a person seeking an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 14

What is the result of a breach of a minor contractual term?

Accepted Answer

The other party must

Question 15

Ellis agreed to paint Lee's house for a price of $1,500. A month before the performance was due, Lee called and told Ellis that she had changed her mind and was going to have her house restuccoed instead. Ellis insisted that they had a contract and that he was going to paint the house anyway. Lee repeated that she was not going to go through with it, but Ellis insisted the contract was still on. Before further steps could be taken by either party, Lee's house was destroyed by a freak airplane accident. Which one of the following statements describes the law applicable to these facts?

Accepted Answer

A)  Lee could have accepted Ellis's conduct as an anticipatory breach. 
B)  Ellis's conduct amounted to repudiation, and Lee could have sued for breach of contract immediately after the phone call. 
C)  The contract has been discharged by frustration. 
D)  Lee's conduct did not amount to a breach since she told him a month before performance was due that she didn't want the house painted. 
E)  Ellis will be able to successfully claim as damages the amount that he would have made if the contract had been performed. 
A)  Lee could have accepted Ellis's conduct as an anticipatory breach. 
B)  Ellis's conduct amounted to repudiation, and Lee could have sued for breach of contract immediately after the phone call. 
C)  The contract has been discharged by frustration. 
D)  Lee's conduct did not amount to a breach since she told him a month before performance was due that she didn't want the house painted. 
E)  Ellis will be able to successfully claim as damages the amount that he would have made if the contract had been performed.

Question 16

Injunction is an example of an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 17

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Accepted Answer

Yes. Substantial performance, where an i

Question 18

Joe paid Sam a debt owed of $50,000 by giving him 10,000 $5 bills. Sam refused to accept the payment. Explain this legal position.

Accepted Answer

Coin is not involved here and

Question 19

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

Accepted Answer

A)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract. 
B)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
C)  A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach. 
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 an non-essential term, i.e., a warranty. 
E)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a "fundamental breach" of the contract. 
A)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract. 
B)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
C)  A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach. 
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 an non-essential term, i.e., a warranty. 
E)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a "fundamental breach" of the contract.

Question 20

The claim of frustration is not available in which of the following circumstances?

Accepted Answer

A)  The law changes, making performance illegal. 
B)  A government policy prevents performance. 
C)  The subject matter of the agreement is destroyed. 
D)  An event that forms the basis of the contract does not take place. 
E)  A change in circumstances makes it difficult or more costly for one of the parties to perform. 
A)  The law changes, making performance illegal. 
B)  A government policy prevents performance. 
C)  The subject matter of the agreement is destroyed. 
D)  An event that forms the basis of the contract does not take place. 
E)  A change in circumstances makes it difficult or more costly for one of the parties to perform.

The principle of substantial performance can best be described as

Jones ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit?

The case of Romfo v. 1216393 involved an order of specific performance and liquidated damages. What did the Court of Appeal hold?

Which of the following is false with regard to ending contracts and remedies?

A deposit must be returned if no damage has taken place. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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?

If a supplier failed to honour a contract to supply parts to Mr. Matheson and the court finds the supplier in breach of contract, which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?

When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a

Explain the principle of mitigation in contract law.

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

Discuss how and why promissory estoppel might come into play when a contract is being discharged or changed by agreement.

"Clean hands" refers to the absence of wrongdoing on the part of a person seeking an equitable remedy.

What is the result of a breach of a minor contractual term?

Injunction is an example of an equitable remedy.

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Joe paid Sam a debt owed of $50,000 by giving him 10,000 $5 bills. Sam refused to accept the payment. Explain this legal position.

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

The claim of frustration is not available in which of the following circumstances?

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

The principle of substantial performance can best be described as

Jones ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit?

The case of Romfo v. 1216393 involved an order of specific performance and liquidated damages. What did the Court of Appeal hold?

Which of the following is false with regard to ending contracts and remedies?

A deposit must be returned if no damage has taken place. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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?

If a supplier failed to honour a contract to supply parts to Mr. Matheson and the court finds the supplier in breach of contract, which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?

When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a

Explain the principle of mitigation in contract law.

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

Discuss how and why promissory estoppel might come into play when a contract is being discharged or changed by agreement.

"Clean hands" refers to the absence of wrongdoing on the part of a person seeking an equitable remedy.

What is the result of a breach of a minor contractual term?

Injunction is an example of an equitable remedy.

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Joe paid Sam a debt owed of $50,000 by giving him 10,000 $5 bills. Sam refused to accept the payment. Explain this legal position.

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

The claim of frustration is not available in which of the following circumstances?

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