Question 1

Discuss exculpatory (exemption) clauses and how the courts treat them.

Accepted Answer

Here students should explain what an exc

Question 2

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

Accepted Answer

A)  The victim of a breach can recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  An injunction is an equitable remedy forcing a person to comply with the terms of the contract. 
C)  The quantum (amount) of damages to be given to the victim of the breach may be limited to the amount specified in a liquidated damages clause of her contract. 
D)  A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable. 
E)  Specific performance 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 can recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  An injunction is an equitable remedy forcing a person to comply with the terms of the contract. 
C)  The quantum (amount) of damages to be given to the victim of the breach may be limited to the amount specified in a liquidated damages clause of her contract. 
D)  A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable. 
E)  Specific performance 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 3

What is the legal position of the victim of an anticipatory breach?

Accepted Answer

The victim of such a breach has a choice

Question 4

Damages are an example of an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 5

Dagney was an author of a popular series of children's books. She signed an agreement with her publisher, in which she agreed to have a new book in the series written by October 15th. As noted in the contract, the timing was critical to ensuring the books would be on the shelves before Christmas and in order to coincide with a massive promotion the publisher had been planning. Faran had a terrible case of writer's block. By October 3rd, she realized that there was no way that she would have the book finished by the deadline. She e-mailed her publisher, admitting that she would not have the book finished in time. What are the publisher's options?

Accepted Answer

A)  The publisher has the right to demand performance or sue. 
B)  The publisher cannot take any steps until October 15th, assuming Dagney does not deliver. 
C)  The publisher has no recourse, because Dagney's case of writer's block has made performance impossible. 
D)  The contract is voidable at the option of the publisher. 
E)  The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach. 
A)  The publisher has the right to demand performance or sue. 
B)  The publisher cannot take any steps until October 15th, assuming Dagney does not deliver. 
C)  The publisher has no recourse, because Dagney's case of writer's block has made performance impossible. 
D)  The contract is voidable at the option of the publisher. 
E)  The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach.

Question 6

Explain what is meant by quantum meruit.

Accepted Answer

When a person requests a service such as

Question 7

Rahilly entered into a contract with Khan, whereby Rahilly agreed to paint a portrait of Khan's wife to be completed by her 30th birthday, six months from the time of this agreement. Three months before the portrait was to be completed, Rahilly told Khan that he would not be doing the portrait because he accepted a job in Boston and was leaving immediately. Which of the following is false with regard to the rights of the parties in this situation?

Accepted Answer

A)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by frustration. 
B)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by performance. 
C)  Khan must wait to see if Rahilly really fails to perform the contract before Khan can sue. 
D)  The contract has been repudiated, and Khan can elect to acknowledge the breach and sue Rahilly right away. 
E)  The contract has not been frustrated because there was no unforeseen event beyond the control of either party making it impossible or meaningless to perform the contract. 
A)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by frustration. 
B)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by performance. 
C)  Khan must wait to see if Rahilly really fails to perform the contract before Khan can sue. 
D)  The contract has been repudiated, and Khan can elect to acknowledge the breach and sue Rahilly right away. 
E)  The contract has not been frustrated because there was no unforeseen event beyond the control of either party making it impossible or meaningless to perform the contract.

Question 8

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

Accepted Answer

A)  Moore, a sculptor, was delivering a $15,000 work when he lost control of the car and the work was crushed. He had been drinking heavily and had not bothered to wrap or box the work. 
B)  McGee contracts to give a lecture at a convention on modern marketing, but the convention was cancelled because of an epidemic. 
C)  Cooper contracts to deliver ten bushels of ripe tomatoes to Haig's restaurant, and Cooper's tomato crop is destroyed by hail a few days before the delivery date. 
D)  McDonald agreed to buy Thornburn's horse, but unknown to both of them, at the time of the contract the horse was dead. 
E)  Binks agreed to purchase the business from Kealy, but Binks suffered such great losses in the recent stock market crash that he couldn't afford to go through with it. 
A)  Moore, a sculptor, was delivering a $15,000 work when he lost control of the car and the work was crushed. He had been drinking heavily and had not bothered to wrap or box the work. 
B)  McGee contracts to give a lecture at a convention on modern marketing, but the convention was cancelled because of an epidemic. 
C)  Cooper contracts to deliver ten bushels of ripe tomatoes to Haig's restaurant, and Cooper's tomato crop is destroyed by hail a few days before the delivery date. 
D)  McDonald agreed to buy Thornburn's horse, but unknown to both of them, at the time of the contract the horse was dead. 
E)  Binks agreed to purchase the business from Kealy, but Binks suffered such great losses in the recent stock market crash that he couldn't afford to go through with it.

Question 9

Explain how the remedy of damages is applied in contract law and any limitation on the availability of damages.

Accepted Answer

The idea here is that students should un

Question 10

Sam agreed to manufacture and supply 25 specially adapted computers for Joe to use for simulated horse racing in his string of hotels throughout the province. Unfortunately, after Sam almost completed the computers, the province passed a law prohibiting the manufacture and sale of these kinds of machines. Joe had paid a deposit of $5,000, but Sam had incurred $30,000 of expenses in manufacturing these machines. The total purchase price agree upon between these parties was $50,000. Joe sued Sam for the return of his $5,000 deposit. Sam, in turn, sued Joe for a contribution towards his loss. Discuss the legal position of the parties.

Accepted Answer

The effect will vary to some extent with

Question 11

Joe agreed to sell Sam his model T-Ford automobile, and the day before delivery, he took it out for one last drive. Through his own fault, got into an accident in which the car was destroyed. Because it was impossible to go through with the terms of the contract, he claimed that it was frustrated. Discuss the legal position of the parties.

Accepted Answer

This is not frustrat

Question 12

Gill, a wholesale fish seller, agreed to provide Blanchet's Restaurant with 1,000 pounds 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 that much, 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 were 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)  Gill was under a strict obligation to supply the fish and no excuses for failure are allowed. 
C)  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 his failure to deliver any fish in September. 
D)  The contract was frustrated for the whole month of September by Gill's inability to obtain fish in the way that he intended, and thus he is not liable at all. 
E)  The doctrine of frustration does not apply here because this is a sale-of-goods situation. 
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)  Gill was under a strict obligation to supply the fish and no excuses for failure are allowed. 
C)  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 his failure to deliver any fish in September. 
D)  The contract was frustrated for the whole month of September by Gill's inability to obtain fish in the way that he intended, and thus he is not liable at all. 
E)  The doctrine of frustration does not apply here because this is a sale-of-goods situation.

Question 13

Perfect Programs Ltd. hired Gill, who had training not only in programming but also in pharmacy management, to create a computer program for use in a pharmacy to take care of all its needs with regard to inventory, billings, prescriptions, etc. The employment contract provided for a three-year term with no provision for early termination and the following covenant: "The employee, upon his leaving the employ of the employer, shall not compete, directly or indirectly, in any capacity whatsoever, within five miles of this place of employment." After Gill had been there for two years and the project was only months away from completion, he was approached by a representative of Big Big Co. (with offices in the same building), who offered Gill a job with, among other things, a higher salary and more staff to help him complete a program for use by drugstores. Gill accepted. To replace Gill, Perfect Programs Ltd. hired a man from New York with the same training as Gill and sued Gill for breach of contract. Which of the following is true?

Accepted Answer

A)  Gill will have to pay damages for all the loss that directly flows from the breach no matter how improbable. 
B)  Gill is not in breach of contract because the restrictive covenant is illegal, so the whole contract is void. 
C)  If Gill knew that there would be a delay before the new employee could reach the level Gill had attained before his departure, the costs of the delay would be factored into the damages. 
D)  Perfect Programs Ltd. could get an injunction against Gill, because the restrictive covenant is reasonable in this form. 
E)  Perfect Programs Ltd. could have abandoned the project and just sued Gill for the entire anticipated lost profit. 
A)  Gill will have to pay damages for all the loss that directly flows from the breach no matter how improbable. 
B)  Gill is not in breach of contract because the restrictive covenant is illegal, so the whole contract is void. 
C)  If Gill knew that there would be a delay before the new employee could reach the level Gill had attained before his departure, the costs of the delay would be factored into the damages. 
D)  Perfect Programs Ltd. could get an injunction against Gill, because the restrictive covenant is reasonable in this form. 
E)  Perfect Programs Ltd. could have abandoned the project and just sued Gill for the entire anticipated lost profit.

Question 14

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

Accepted Answer

The other

Question 15

In awarding damages for breach of contract

Accepted Answer

A)  the plaintiff should be, to the extent possible, placed in the same position as he was prior to the agreement being made. 
B)  the plaintiff should only be entitled to compensation for specific and calculable costs and expenses. 
C)  the defendant should be, to the extent possible, punished for the breach in order to deter him from repeating this course of behaviour. 
D)  the defendant should only be required to pay what he can reasonably afford. 
E)  the plaintiff should be, to the extent possible, placed in the same position as he would have been if the contract had been performed. 
A)  the plaintiff should be, to the extent possible, placed in the same position as he was prior to the agreement being made. 
B)  the plaintiff should only be entitled to compensation for specific and calculable costs and expenses. 
C)  the defendant should be, to the extent possible, punished for the breach in order to deter him from repeating this course of behaviour. 
D)  the defendant should only be required to pay what he can reasonably afford. 
E)  the plaintiff should be, to the extent possible, placed in the same position as he would have been if the contract had been performed.

Question 16

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 when the buyer suffers a loss?

Accepted Answer

A)  Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause. 
B)  The buyer of an expensive computer software program received, a month after the sale, an invoice on which was printed an exemption clause that he hadn't been shown before. 
C)  A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions. 
D)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms. 
E)  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. 
A)  Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause. 
B)  The buyer of an expensive computer software program received, a month after the sale, an invoice on which was printed an exemption clause that he hadn't been shown before. 
C)  A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions. 
D)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms. 
E)  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.

Question 17

Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event is referred to as ________.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Accepted Answer

Self-induc

Question 18

Where a contract is discharged or modified by what amounts to a unilateral discharge, explain the problem that arises and its solution.

Accepted Answer

A unilateral discharge involves one pers

Question 19

Which of the following statements is true with respect to the law of damages?

Accepted Answer

A)  A deposit is an amount of money a party to a contract agrees to forfeit if he or she breaches the contract. 
B)  Damages are intended to punish the wrongdoer for breaching the contract. 
C)  Damages are awarded for a breach of a condition but not for a breach of warranty. 
D)  Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do. 
E)  If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach. 
A)  A deposit is an amount of money a party to a contract agrees to forfeit if he or she breaches the contract. 
B)  Damages are intended to punish the wrongdoer for breaching the contract. 
C)  Damages are awarded for a breach of a condition but not for a breach of warranty. 
D)  Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do. 
E)  If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach.

Question 20

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

Accepted Answer

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

Discuss exculpatory (exemption) clauses and how the courts treat them.

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

What is the legal position of the victim of an anticipatory breach?

Damages are an example of an equitable remedy.

Explain what is meant by quantum meruit.

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

Explain how the remedy of damages is applied in contract law and any limitation on the availability of damages.

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

In awarding damages for breach of contract

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 when the buyer suffers a loss?

Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event is referred to as ________. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Where a contract is discharged or modified by what amounts to a unilateral discharge, explain the problem that arises and its solution.

Which of the following statements is true with respect to the law of damages?

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

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

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Exam 9: The End of the Contractual Relationship

Discuss exculpatory (exemption) clauses and how the courts treat them.

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

What is the legal position of the victim of an anticipatory breach?

Damages are an example of an equitable remedy.

Explain what is meant by quantum meruit.

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

Explain how the remedy of damages is applied in contract law and any limitation on the availability of damages.

What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

In awarding damages for breach of contract

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 when the buyer suffers a loss?

Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event is referred to as ________. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Where a contract is discharged or modified by what amounts to a unilateral discharge, explain the problem that arises and its solution.

Which of the following statements is true with respect to the law of damages?

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

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