Question 1

Where the misrepresentation is innocent,explain the remedies available to the victim.

Accepted Answer

The answer of Where the misrepresentation is innocent,explain the remedies...

Question 2

A computer salesman innocently misrepresented a fact about a Macintosh computer to a customer.Although this fact was not about a term of the contract,it did induce the customer to buy the computer.The customer has now learned the true facts and wants to return the computer.If the store refused to take it back,the customer would ask the court for which equitable remedy?

Accepted Answer

A) rescission 
B) restitution 
C) injunction 
D) damages 
E) rectification

Question 3

An 80-year-old woman signed,in the presence of a solicitor,a contract for land by which she sold property to her daughter.She later asked the court to set the contract aside on the grounds of non est factum (mistake)and undue influence.Which of the following is true with regard to these grounds for the contract?

Accepted Answer

A) She can successfully use the plea of non est factum if she was not misled about the very nature of the document. 
B) If the aged mother received independent legal advice,it would be good evidence for the daughter that the mother's transferring the property was done freely,without undue influence being exerted. 
C) If the court presumes that undue influence was used by the adult who gained from the contract with an aged parent,the contract is automatically set aside. 
D) She can successfully use the plea of non est factum if there is evidence that she was careless when she signed the document. 
E) If the lawyer were the daughter's husband,his advice would be seen as independent legal advice.

Question 4

Tara and Daughters Limited ("Tara")enters into a contract to manufacture machinery for Big Ben Inc.The contract price is $200 000.The parties agree that the machinery is to be delivered in 60 days.Which of the following unexpected events would discharge any further obligations under the contract?

Accepted Answer

A) A number of Tara's key employees were absent through illness. 
B) Tara had taken on too many other orders and had to give priority to its regular customers. 
C) Tara's factory was flooded by a tsunami. 
D) One of Tara's key suppliers failed to deliver necessary material to allow Tara to manufacture the machinery. 
E) Tara secured a new contract on better terms with a bigger client.

Question 5

Quantum meruit is applied where the contract is breached after all work has been done.

Accepted Answer

A) True 
 B)False

Question 6

Susan enters into an unconditional agreement of purchase and sale to buy a home owned by Alicia.The deal is scheduled to close on September 1.On June 10,less than three months prior to closing,Susan writes a letter to Alicia indicating that she has changed her mind and will not be buying her house.In these circumstances,the most likely scenario is for Alicia to :

Accepted Answer

A) treat the letter as constituting an anticipatory breach,treat the contract as discharged,and place the home back on the market reserving her rights to sue Susan. 
B) seek a court injunction forcing Susan to close on September 1. 
C) seek no court action because the contract is frustrated. 
D) commence a lawsuit immediately for punitive damages. 
E) sue the listing agent for failing to secure a larger deposit.

Question 7

On February 1,Smyth contracted to buy Dupont's van.They agreed that Smyth would pay the price of $7000 on March 1 and take delivery and the risk on that date.Smyth then contracted to sell the van in Smithers on March 5 for $7600.On February 22,Dupont called Smyth and said he wasn't going to sell the van; he had decided to keep it.On these facts,which of the following is false?

Accepted Answer

A) Smyth could refuse to acknowledge a breach and press Dupont to complete the contact. 
B) Smyth could agree to call off the contract; neither of them had yet performed. 
C) Dupont's call is an express repudiation of the contract and is an anticipatory breach. 
D) Smyth could acknowledge that Dupont was in breach but has to wait until after the performance date to sue him for breach of contract. 
E) Smyth could refuse to acknowledge a breach,but that would result in the possibility that the contract could be breached later.

Question 8

Able Company contracted to sell to Baker Company 400 barrels of chemical C for $1200.Able Company assigned the entire $1200 in writing to Mr.Long,who sent a letter informing Baker Company of the assignment and directing Baker Company to forward money to him instead of Able Company.Unbeknown to both companies,at the time of the contract,the ship carrying the chemical had sunk and all cargo was lost.Which of the following is true?

Accepted Answer

A) The assignment to Mr.Long would fail to be a statutory assignment. 
B) Mr.Long will receive nothing from Baker Company because nothing is owed to Able Company. 
C) Mr.Long will receive part payment. 
D) Mr.Long,the assignee,will receive $1200 from Baker Company. 
E) Since Able Company has breached the contract,it pays compensation for the damages of both Baker Company and Mr.Long.

Question 9

Non est factum is available as a defence even when there is negligence on the part of the person claiming it.

Accepted Answer

A) True 
 B)False

Question 10

The victim of anticipatory breach has two options available to him.What are they?

Accepted Answer

The answer of The victim of anticipatory breach has two...

Question 11

Indicate three situations where the courts will presume a relationship to involve undue influence.

Accepted Answer

The answer of Indicate three situations where the courts will...

Question 12

In which of the following would the court find that the contract is void (i.e.,not a binding agreement)?

Accepted Answer

A) Two parties contracted for a tanker of oil,but unknown to either of them at the time of the contract,the tanker had caught on fire and all the oil had burnt. 
B) Kramer,thinking that the city was going to build a new school in the area,offered to buy a house.She had not talked with the seller or his agent about the possibility of a school.After the offer was accepted,she learned that there would be no such new school. 
C) Ry and Ali,two parties to a contract,each had a different understanding about the term royalties in the contract.The court found Ali's interpretation the more reasonable. 
D) After some negotiation,Paul accepted Monafo's offer to sell him the painting for $5000.When the contract was put in writing,the price was incorrectly stated as $500.Monafo could prove the terms of the oral contract. 
E) Joe bought pizzas,but after eating one he realized that purchasing them was a big mistake.

Question 13

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

Accepted Answer

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

Question 14

Which one of the following is true with regard to the ending of a contract by performance?

Accepted Answer

A) Legal tender consists of bills or coins in any amount. 
B) If a person owing money has tendered payment in a reasonable way,at a reasonable time,and it has been refused,he is free from any further obligation to pay. 
C) In law,a certified cheque is the same as cash. 
D) If a person attempts to perform services in accordance with the terms of the contract,and the buyer refuses those services,the person attempting to perform can sue the buyer with no further attempt to perform. 
E) If a warranty is breached,the victim has no further obligation to perform under the contract.

Question 15

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300M that was displayed in the showroom of Joe's Fine Cars.But instead of delivering the car to Sam,Joe sold it to another customer who offered him more money.Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A) specific performance 
B) injunction 
C) rescission 
D) no remedy 
E) damages

Question 16

Mary has a little scam most everywhere she goes; she sells by saying anything.Her buyers just have woes.Which of the following is true with regard to misrepresentation?

Accepted Answer

A) In some types of misrepresentation there are no remedies available. 
B) If Mary induces the buyer to buy by making a misrepresentation that she honestly thought was true,the buyer has no remedy in law or in equity. 
C) For fraudulent misrepresentation,the buyer can be granted only the equitable remedy of rescission. 
D) There are several remedies available in case law for an exaggerated claim made by Mary. 
E) A misrepresentation can be made about a term of a contract and result in an award of rescission and/or damages.

Question 17

Discuss the development and importance of the principle of unconscionable contracts.In your answer,compare unconscionability to insanity,duress,and undue influence.

Accepted Answer

The answer of Discuss the development and importance of the...

Question 18

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

Accepted Answer

The answer of "In contract law,warranty is a promise by...

Question 19

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

Accepted Answer

A) McDonald agreed to buy Thornburn's horse,but unknown to both of them,at the time of the contract the horse was dead. 
B) McGee contracts to give a lecture at a convention on modern marketing,but the convention was cancelled because of an epidemic. 
C) 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. 
D) 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. 
E) Cooper contracts to deliver 10 bushels of ripe tomatoes to Haig's restaurant,and Cooper's tomato crop is destroyed by hail a few days before the delivery date.

Question 20

When two parties are involved in a misunderstanding as to the meaning of a term of the contract,which of the following is usually applied by the court to settle the matter?

Accepted Answer

A) The court will find that there is no contract because there is no meeting of the minds. 
B) non est factum 
C) the most reasonable interpretation of the terms 
D) the equitable remedy of rectification 
E) caveat emptor

Exam 4: Enforcing Contractual Obligations