Deck 14: Breach of Contract and Remedies

Question 1

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Repudiation before the date fixed for performance is known as anticipatory breach.

Answer 1

True

Question 2

Trendy Imports entered into a contract on June 1^st with Neat Things, a small upscale gift shop, to supply it with 100 tooled leather boxes. Delivery was to be made on September 15^th so that the boxes could be on display in the store by October 15^th, ready for the pre-Christmas rush. On August 6^th, Trendy notified Neat Things that a dock strike in Italy was holding up the shipment and, if the boat on which they were loaded could not leave port within a very few days, Trendy would not be able to make the delivery on September 15^th. In this situation,

A) Neat Things can sue Trendy immediately for breach of contract as this is an anticipatory and express breach of contract.
B) Neat Things can wait until September 15^th and then sue Trendy for breach of contract as this is an express breach of contract if the boxes are not delivered.
C) Neat Things must wait until September 15^th and if the boxes are not delivered then it may sue Trendy for breach of contract as this is not an anticipatory breach but only an express breach.
D) Neat Things must until September 15^th and then sue Trendy for implied breach of contract.
E) None of the responses are correct.

Answer 2

B

Question 3

Ming was dismissed from his senior management position by his employer. He was very upset and said "I'm going to fight this in court." He did not look for another job. The court held that he had been wrongfully dismissed and said that the proper notice period was 6 months.

A) Ming's damages will be 6 months' pay.
B) Ming's damages will be 6 months' pay plus punitive damages.
C) Ming's damages will be 6 month's pay minus an amount for failure to mitigate damages.
D) Ming's damages will be 6 month's pay determined in accordance with the principles of quantum meruit.
E) None of these.

Answer 3

C

Question 4

Eric was painting the interior of Erna's house. While he was painting, Erna was constantly nattering at him. One day, he quietly packed up all of his equipment, waved good-bye and left. He had almost completed the job and had two walls left in the small bedroom. What did Eric's actions constitute?

A) Express Repudiation.
B) Implied Repudiation.
C) Mitigation.
D) Specific Performance.

Question 5

In rare cases, where monetary damages would be an inadequate compensation for breach of contract, the courts may decree an order of specific performance of the contract. How does this differ from an ordinary monetary judgement?

A) The decree of specific performance carries with it the power of the courts to fine or imprison the wrongdoer for failure to comply with the order.
B) A failure to comply with the decree of specific performance does not constitute contempt of court.
C) The decree of specific performance does not carry the power of the courts to fine or imprison the wrongdoer for failure to comply with the order.
D) A failure to comply with the decree of specific performance specifies immediate imprisonment.

Question 6

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Robin's decision not to proceed with the sale was an express repudiation of the contract.

Question 7

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Because Robin's bicycle was stolen, Felicia is entitled to demand that Robin replace the stolen bicycle with a similar one and sell it to her.

Question 8

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Felicia is entitled to claim damages for the difference in value between the agreed price and the price of a similar bicycle on the market.

Question 9

Eric was painting the interior of Erna's house. While he was painting, Erna was constantly nattering at him. One day, he quietly packed up all of his equipment, waved good-bye and left. He had almost completed the job and had two walls left in the small bedroom. What remedy is available to Erna?

A) Damages.
B) Liquidated Damages.
C) Specific Performance.
D) Injunction.

Question 10

Awards which are not compensation of the plaintiff but rather punishment of the defendant for a breach of contract which is deceitful, malicious, or offensive to ordinary standards of morality are known as which kind of damages?

A) Consequential damages.
B) Special damages.
C) General damages.
D) Punitive damages.
E) Liquidated damages.

Question 11

Petra agreed to purchase franchise rights from Valley Cream Inc. to sell VCI ice cream from small trucks in a large metropolitan area. Her deposit on the transaction was $15,000 against a final price of the rights at $40,000. The contract contained a term, of which Petra was aware, that the deposit would be forfeited as liquidated damages if she did not follow through on the deal. Early on in the process, Petra could not get the financing she needed, and was forced to back out. Valley Cream, whose file contained only the copy of the agreement, refused to return the money. The most important part of Petra's Statement of Claim will be that relating to

A) performance in equity.
B) the doctrine of part-performance.
C) the duty to mitigate loss.
D) punitive damages for ordinary breach.
E) the doctrine of quantum meruit.

Question 12

In which of the following cases will a court order specific performance of the contract? i. Gigantic Electrical Warehouse repudiates its contract with Video Co. to purchase 2,000 VCRs. The loss of this deal might push Video into bankruptcy.
Ii) Joan, a great opera singer, decides it is too far from New York to the National Arts Centre in Ottawa and so she will not perform at the sold-out concert there next week for which she had contracted months ago.
Iii) Mitsuko had a contract with Refined Galleries to purchase a small Rembrandt drawing, which Refined wants now to sell to a regular and very wealthy customer of theirs. They will not give Mitsuko the drawing.
Iv) John is refusing to perform a contract to sell his house to Eli. Eli has wanted to live in that house since he was a small boy.
V) Alvin is refusing to perform a contract to purchase Huma's house. Huma has another purchaser but her highest offer is $10,000 less than Alvin's.

A) iii and iv.
B) i, iii and iv.
C) i, iii, iv and v.
D) i, ii, iii and iv.
E) All of the responses are correct.

Question 13

Paul ordered a motorbike from Moto-Haus. He had reviewed all the specifications and told the salesperson of his final choice. When the bike arrived, Paul found that it did not live up to the fuel efficiency that he expected or that was claimed in the brochure. He took the bike back to Moto-Haus, and demanded the return of his money, which was refused. Paul would be best advised to:

A) treat the contract as at an end, sue for breach of warranty.
B) treat the contract as at an end, sue for breach of condition.
C) treat the contract as at an end, sue for fundamental breach.
D) treat the contract as on going, sue for breach of warranty.
E) treat the contract as on going, sue for breach of condition.

Question 14

Princess Alicia hires Renaldo, the artist, to paint her portrait. The two disagreed. Renaldo said, "I'm done!" He left the palace. What did Renaldo's actions constitute?

A) Express Repudiation.
B) Implied Repudiation.
C) Mitigation.
D) Substantial Performance.

Question 15

Princess Alicia hires Renaldo, the artist to paint her portrait. The two disagreed. Renaldo said, "I'm done!" He left the palace. What remedy is available to Princess Alicia?

A) Damages.
B) Injunction.
C) Specific Performance.
D) Quantum Meruit.

Question 16

Zenia contracts with Yvonne for a supply of specialized computer components worth $6,000, which she needs to meet a contract to supply Wendy with 60 laptop computers, a contract which is worth $65,000 to Zenia. Zenia makes it clear to Yvonne that her contract with Wendy is vital to let her get established in the market and that it is imperative that Yvonne meet the deadline. "If you can't," she says, "I'll take the business to someone who can." Yvonne wants the business badly, so, against her better judgment, she agrees to a clause in the contract which says that, for every day delivery is late, she will pay Zenia $10,000.

A) This is a liquidated damages clause and it will be enforceable against Yvonne.
B) Because liquidated damages clauses are against public policy, Zenia will not be able to enforce this clause if Yvonne is late performing.
C) Although the court would not normally enforce this clause, since Yvonne was aware of the vital importance in this case of prompt delivery, the court will uphold the clause if she is late delivering.
D) This is a penalty clause and the court will refuse to enforce it.
E) Since Yvonne was under duress to sign this contract, the court will not enforce the clause, although under normal circumstances they would.

Question 17

Catherine agreed to purchase franchise rights from a hamburger restaurant chain to open her own restaurant. Her deposit on the transaction was $10,000 against a final price of the rights at $750,000. The contract contained a term, of which Catherine was aware, that the deposit would be forfeited if she did not follow through on the deal. Early on in the process, Catherine could not obtain ownership of the site upon which she intended to construct her restaurant and was forced to back out. The hamburger chain refused to return her deposit. The most correct statement below is:

A) Catherine, as plaintiff, will succeed in arguing that the $10,000 deposit is a penalty.
B) Catherine, as defendant, will argue return of the $10,000 on the doctrine of part-performance.
C) Catherine, as plaintiff, will fail in arguing that the $10,000 is a penalty.
D) The chain, as plaintiff, will successfully argue that the $10,000 is liquidated damages.
E) Catherine, as plaintiff, will fail in arguing that the $10,000 is liquidated damages.

Question 18

Vince agreed to paint Jen's house for $4,000, inside and out. Normally, it would have cost Jen $6,500 but Vince felt sorry for her because she was a single mother with four children and not much money, so he decided to give her a good deal. When Vince had painted everything except the kitchen ceiling, Matt asked him to go on a fishing holiday with him, and Vince, who was rather irresponsible, decided he had had enough painting. He left a note for Jen saying "You've had more than your money's worth with what I've done already. I'll expect your cheque for $4,000 to be at my office when I return in two or three weeks." Which of the following statements is correct?

A) Vince is entitled to the full amount of $4,000 since, as he has in fact done at least $4,000 worth of work, he should get that on a quantum meruit basis.
B) Vince abandoned the contract before he had completed performance and is not entitled to any money since he has breached the contract.
C) Vince is entitled to $4,000, less what it costs Jen to finish having the kitchen ceiling painted, since he has substantially performed the contract.
D) The court will order specific performance of the contract and Vince will have to complete the painting for the agreed-upon $4,000.
E) None of the statements are correct.

Question 19

Joe agreed to hire Ron to shovel his sidewalk but they did not agree on a price. Ron shovelled the snow, but they could not agree on a price. Does quantum meruit apply?

A) Yes.
B) Yes, if there is substantial performance.
C) No, this is a contract for services.
D) No, there is no substantial performance.

Question 20

Trendy Imports entered into a contract on June 1^st with Neat Things, a small upscale gift shop, to supply it with 100 tooled leather boxes. Delivery was to be made on September 15^th so that the boxes could be on display in the store by October 15^th, ready for the pre-Christmas rush. On August 6^th, Trendy notified Neat Things that a dock strike in Italy was holding up the shipment and, if the boat on which they were loaded could not leave port within a very few days, Trendy would not be able to make the delivery on September 15^th. Suppose Neat Things does nothing immediately, the boat sails and the delivery would have been made on time, but the boat sinks in a hurricane on August 23^rd.

A) There is nothing Neat Things can now do since the contract is frustrated by the sinking of the ship.
B) Neat Things can sue Trendy because of its anticipatory breach on August 6^th.
C) There is nothing Neat Things can now do. It could have sued when the boat sank, if the delivery could not have been made on time even if the boat had not sunk, since the sinking of the boat would not then have been relevant to the breach of contract.
D) Trendy will lose if Neat Things sues now because, as of August 23^rd, it is in breach of its contract with Neat Things.
E) Neat Things still retains the right to wait until September 15^th and sue if Trendy does not perform its part of the contract.

Question 21

Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Steven is entitled to ask the court for an order of specific performance of the contract.

Question 22

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum may request the court to issue an injunction to prevent Mario from performing at the competitor's opera house.

Question 23

Nature's Flowers is required, as a condition of their contract, to supply the Ubiquitous Chip, a trendy restaurant, with 45 flower arrangements for tables and three large displays, twice a week. This week, it was two table arrangements short one day and three short on the other. Nature's Flowers is entitled to invoke the doctrine of quantum meruit and be paid for the value of what was delivered.

Question 24

Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Andrew has substantially performed his part of the agreement and would be entitled to payment of the contract price, less the amount necessary to finish the building.

Question 25

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Had the bicycle not been stolen, Felicia would be entitled to specific performance of the contract if Robin had refused to sell.

Question 26

Nature's Flowers is required, as a condition of their contract, to supply the Ubiquitous Chip, a trendy restaurant, with 45 flower arrangements for tables and three large displays, twice a week. This week, it was two table arrangements short one day and three short on the other. The Ubiquitous Chip can argue that Nature's Flowers have breached a condition of the contract and treat the contract as being at an end, which means they would not have to pay for the flowers delivered.

Question 27

Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Andrew would not be entitled to claim payment, because he has not finished his part of the agreement.

Question 28

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The monetary amount which Barnum would be entitled to receive as compensation from Mario would be the amount of the loss that Mario could reasonably have foreseen at the time that the contract was entered into by the parties.

Question 29

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. If Benny really wanted the pies and felt that Marnie would be able to meet her commitments, he could choose to treat the breach of condition as if it were a breach of warranty.

Question 30

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. Since this is a breach of a condition of the contract, Benny is released from any obligations he has under the contract, and the contract is at an end.

Question 31

Guthrie Caterers failed to turn up as contracted to cater Dev and Rabinda's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. There was an express repudiation of the contract when Guthrie failed to arrive when and where they should have.

Question 32

Guthrie Caterers failed to turn up as contracted to cater Dev and Rabinda's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. If Guthrie had called a week before the wedding, this would have been a breach de minimis of the contract.

Question 33

Guthrie Caterers failed to turn up as contracted to cater Dev and Rabinda's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. This was an implied repudiation since they did not contact Dev and Rabinda and actually tell them "We will not be catering your wedding."

Question 34

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The court may order Mario to continue to perform at Barnum's theatre, because he had promised to work only for him.

Question 35

Nature's Flowers is required, as a condition of their contract, to supply the Ubiquitous Chip, a trendy restaurant, with 45 flower arrangements for tables and three large displays, twice a week. This week, it was two table arrangements short one day and three short on the other. Nature's Flowers is entitled to be paid the amount of the contract less the value of the five table vases because there has been substantial performance of the contract.

Question 36

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum is entitled to treat Mario's actions as a breach of his contract.

Question 37

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Felicia cannot recover anything from Robin for repudiation of the contract, because the contract was frustrated before the date fixed for performance.

Question 38

Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Andrew's refusal to complete the agreement would entitle Steven to treat the contract as being at an end. He may therefore refuse to pay Andrew for his work.

Question 39

Guthrie Caterers failed to turn up as contracted to cater Dev and Rabinda's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. If, because they had received a week's notice, Dev and Rabinda were able to hire Cameron Caterers and that had cost $10,000 instead of the $7,000 which Guthrie would have charged, Dev and Rabinda would be able to get $10,000 damages from Guthrie.

Question 40

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. An injunction is a discretionary remedy.

Question 41

When faced with a seller's onerous exemption clause, it would be time well spent for an aggrieved purchaser to consider the effect of the law as it relates to fundamental breach.

Question 42

A condition may become a warranty ex post facto.

Question 43

In the six months since Zippy Worldwide Courier bought a truck from the Solidbuilt Motor Co., the truck has broken down constantly and has only been in use for a total of two weeks, never for more than half a day at a time. Zippy wants to return it and get a new truck, but Solidbuilt insists it is repairable. The contract has a replacement warranty clause for defective parts, and another clause says that only the warranties, conditions and other obligations set out in the contract are valid, and that all others, no matter how they might arise, have no force or effect.
Discuss whether or not Zippy could get a court to permit them to rescind the contract.

Question 44

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. In any future dispute over the situation, Gamma's position will be that Antoine's actions constituted anticipatory breach.

Question 45

Jackson Asphalt Co. Ltd. had been informed of upcoming requirements of the Ministry of Transportation for the supply of $600,000 worth of asphalt for a nearby road project. To comply with the requirements for tenders, Jackson Asphalt was required to have their bid submitted to the Minister of Transport no later than 3 p.m. on October 2^nd of that year. Jackson Asphalt prepared their bid and contacted Swisher Couriers Limited and requested them to pick up the envelope. Swisher attended at the Jackson offices at 12 noon on October 1, and their driver was met by an engineer of Jackson Asphalt. "I do not know if you can do this or not, but this must get to the addressee by 3 p.m. tomorrow. If you can do it, that's great, it will save me driving up myself." In response the driver said, "Well, we have our noon next day service." The engineer answered, "Well, noon would be three hours grace, do you have any problem doing that?" The driver responded, "They probably build in a little lead time anyway, but I do not think they would advertise it if we could not come through." The engineer nodded and the driver handed him the bill of lading. The engineer filled it out, marked it as a tender, and removed his copy. On it was a clause which read in fine print, "Maximum liability $2 per pound, not responsible for any further loss, damage, or injury, however caused." The envelope arrived at the provincial capital at 11:00 a.m. the following morning but missed the local routine morning deliveries. The envelope was finally delivered at 3:25 p.m. that day but was rejected by the government clerk as not being submitted in time. As matters would have it, when the tenders were opened, had the tender from Jackson Asphalt been delivered on time, it would have received the government contract and would have made a profit of $85,000. On learning this, Jackson Asphalt Co. Ltd. brought suit against Swisher Courier Ltd., for the amount of its lost profits.
Discuss the issues with respect to breach of contract that arise in this case and render a decision.
D.L.R. (3d) 267.

Question 46

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. If Gamma Oil arranges on its own for another helicopter to pick up the crew, it runs the risk of having to pay both the new pilot, and Antoine, should Antoine have made some alternative provision to honour his obligation to extract the crew.

Question 47

You are the president of Haverland Fruit Company, and you ended negotiations with Western Jam and Jelly Co., having been highly insulted by the WJJ bid for Haverland strawberries at $12,000 per 10,000 baskets. Just before the harvest you found a buyer in Anderson Bakeries at $30,000 for the baskets, but once the trucks had been loaded and sent off, word arrived that Anderson would refuse the shipment as it had been shut down by a strike. The berries will rot in two more days on the trucks. The WJJ President is now on the phone to you with an offer of $8,500 for the berries. What do you do, in what order, and what principles of law are in play?

Question 48

Hygrade Fruit Juice Co. entered into a contract with Citrus Suppliers Ltd. for the supply of orange concentrate for its juice production operation. The terms of the contract provided that Citrus would supply Hygrade with 1,000 cases of oranges at $10, per case one month later, subject to a deposit of $4,000 on signing the contract and the balance on delivery. The contract further provided that in the event of breach or repudiation of the agreement by Hygrade, the deposit would be forfeited as liquidated damages. A week after the contract was signed, a senior representative from Hygrade was meeting with a broker from Citrus on a particular matter when their discussion degenerated into an argument that culminated with the representative from Hygrade saying "We've suffered along with your substandard product long enough. We've paid you too much in the past and you're ruining the reputation of our juices. Are you getting this next shipment from the same source?" The citrus representative responded affirmatively. "Then you can just stuff the next shipment." At that, the representative from Hygrade left.
The fruit to be supplied to Hygrade was costing Citrus $5,000 from their source in Florida, USA. Taking the actions of Hygrade as repudiation, Citrus commenced negotiations with Cake & Cookie Co. for their purchase of the fruit. Cake & Cookie required the fruit for flavouring certain of their products, but certainly did not require high-grade fruit. As this was the case, regardless of the quality of Citrus's offering, Cake & Cookie was prepared to offer only $5,000 for the shipment to take it off Citrus's hands. At the time, other juice manufacturers for whom the fruit was suitable were offering $9,000 for a similar product. On learning of the impending sale between Citrus and Cake & Cookie, Hygrade immediately brought an action for an injunction against the sale and a return of their deposit, which they alleged was not liquidated damages. Citrus immediately filed an action against Hygrade in response, holding on to their $4,000 deposit and suing Hygrade for the $1,000 of lost profits that would have been generated by a sale to Hygrade. Discuss the arguments that will be raised by the parties and render a decision.
D.L.R. (3d) 1.

Question 49

Al was a farmer who grew cash crop vegetables on a large-scale commercial basis. He purchased seeds from his usual supplier for a certain type of cabbage that his brother, also a farmer, had recommended. Al's brother had had particular success growing these cabbages, which matured later in the season than most varieties.
It became apparent to Al partway through the growing season that the cabbages were not doing well. Very few of the plants were maturing and the crop would probably produce less than 60% saleable cabbages. The summer had been quite cool and rainy, and Al suspected that this may have played a part in the cabbages' performance. Al also suspected that his supplier might have sent him the wrong seeds.
The sales contract that accompanied Al's order contained an exemption clause which permitted the supplier to substitute seed products without notice depending on availability. It also required the buyer to make full payment of the contract price in the event of such substitution. The clause also stated that the supplier would not be liable for any loss or damage experienced by a purchaser, however caused, and that a purchaser may not escape the obligation to make payment for seeds purchased on the basis that he experienced loss or damage. Al referred to the supplier's seed catalogue and found the description of the cabbages. The brochure stated that the cabbages were a hearty variety that could withstand extremes of temperature and moisture making them ideal for late planting to mature in the late autumn. The catalogue further stated that this particular cabbage had a higher than average crop recovery rate among cabbage varieties, although results could vary depending on soil composition. Apparently, this variety performed less well in acidic soil. Al contacted his seed supplier and told it about the failure of his cabbage crop. He asked to confirm the variety of seeds that had been supplied and was told that he had, in fact, been shipped the correct seeds. Al, convinced that he had been supplied defective seeds, decided to initiate legal proceedings against the seed supplier. Identify and discuss the legal issues that will be raised by the parties and render a decision.

Question 50

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. Antoine is in breach of contract.

Question 51

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. Should Antoine have failed to make arrangements for the extraction of the crew, he can successfully claim for half of his fee by virtue of the doctrine of substantial performance, and in fact his full performance of the first half of his obligation.

Question 52

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. If Benny treated Marnie's failure to perform as a breach of warranty, the contract would not end but, to the extent that Marnie's breach had caused him injury, she would have to pay Benny damages.

Question 53

Mardo, a brilliant cloth designer, contracted to work for Texture, a textiles company that is world famous for its superb materials. A clause in the employment contract says Mardo will not work for anyone else but Texture for the five-year period of their contract. Shortly after starting to work for Texture, Mardo realizes she has always wanted to be a doctor and that, if she does not start soon, she will never achieve her goal. Texture refuses to let her out of the contract and points out that she has promised not to work for anyone else but them. Mardo leaves anyway.
Discuss whether Texture can get an injunction to stop Mardo working as a cocktail waitress while she puts herself through medical school.

Question 54

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. The circumstances indicate express repudiation by Antoine.