Question 1

Because numerous circumstances may arise that prevent a party from performing its contractual obligations,it is important (particularly in longer-term contracts)that negotiators evaluate risks,speculate on possible changes in the business environment,and be wary of making inflexible commitments or obligations that make performance much more expensive than anticipated.How might a business that is contracting to supply goods in the future protect itself from potential increases in costs?

Accepted Answer

The answer of Because numerous circumstances may arise that prevent...

Question 2

Contractual quantum meruit requires a customer to pay whatever the supplier chooses to charge or whatever the market will bear.

Accepted Answer

Contractual quantum meruit requires the supplier to charge a reasonable and fair price based on the work or goods provided, not whatever they choose to charge or whatever the market will bear.

Question 3

The use of electronic communications creates difficulties in the application of contract law.Some jurisdictions have implemented legislation based on the recommendations of the Uniform Law Conference of Canada.Discuss.

Accepted Answer

The answer of The use of electronic communications creates difficulties...

Question 4

Is there an implied obligation of good faith on parties to a contract? Explain.

Accepted Answer

The answer of Is there an implied obligation of good...

Question 5

Identify and briefly describe how a situation involving the delivery of a quantity of product exceeding the contracted amount would be resolved under the Sale of Goods Act.

Accepted Answer

The answer of Identify and briefly describe how a situation...

Question 6

Identify and briefly explain the circumstances in which a court will imply a term where that term is alleged to have not been addressed in the contract as an express term.Identify and briefly describe the classic courtroom scenario that would be presented to a judge hearing such a case.Provide a brief explanation as to which party in the suit would bear the burden of proof.

Accepted Answer

The answer of Identify and briefly explain the circumstances in...

Question 7

The question of validity of browse-wrap agreements can be avoided entirely by requiring customers to take affirmative action to signify assent.

Accepted Answer

Requiring customers to take affirmative action, such as clicking "I agree," ensures clear consent and avoids ambiguity associated with browse-wrap agreements.

Question 8

A browse-wrap licence instructs the user to review the terms prior to assenting by clicking an "I accept" icon,and the user typically cannot proceed any further without agreeing to the licence terms.

Accepted Answer

A browse-wrap license does not require the user to actively assent to the terms by clicking an "I accept" icon. The terms are simply presented on the website or in the software and the user is deemed to have accepted them by using the website or software.

Question 9

A product that contains a shrink-wrap licence typically bears a notice stating that opening the package constitutes agreement to the licence terms.

Accepted Answer

This is a common practice for software products that are sold in physical packaging with a shrink-wrap licence agreement. By opening the package, the user is agreeing to the terms and conditions of the licence agreement.

Question 10

Identify and briefly describe the circumstances that are of particular importance to negotiators with respect to evaluating risks associated with increases in the cost of materials used to produce a product.Identify and briefly describe contractual terms that may be applied to reduce the risk of market price fluctuations.

Accepted Answer

The answer of Identify and briefly describe the circumstances that...

Question 11

Identify and briefly describe the conflicting consideration that arises from the common law rules of construction.Identify how this conflict arises and under what circumstances parties might find themselves facing such a dilemma.

Accepted Answer

The answer of Identify and briefly describe the conflicting consideration...

Question 12

The court in Tilden Rent-A-Car v.Clendenning refused to uphold an exemption clause because the business knew that the customer had not read the contract.

Accepted Answer

The court in Tilden Rent-A-Car v.Clendenning refused to uphold an exemption clause because the business knew that the customer had not read the contract. This is because in order for an exemption clause to be valid, the customer must have had the opportunity to read and understand it.

Question 13

Identify the terms that are required to be present in a commercial contract in order for it to be considered complete.Identify any additional clauses that could provide additional benefits through their inclusion.

Accepted Answer

The answer of Identify the terms that are required to...

Question 14

Identify and briefly describe the situations in which the court will disregard the parole evidence rule and consider evidence outside the contract.

Accepted Answer

The answer of Identify and briefly describe the situations in...

Question 15

Identify four grounds used by the courts for introducing implied terms into contracts.Give an example of each.

Accepted Answer

The answer of Identify four grounds used by the courts...

Quiz 7: The Terms of a Contract