Question 1

Pat O'Grady owes Robinson $5000 in cash, but resents Robinson talking about O'Grady's debt among mutual acquaintances. O'Grady wants to know which of the following tactics would be legal performance.

Accepted Answer

E

Question 2

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

Accepted Answer

A condition is a fundamental term of the contract, and its breach allows the victim to treat the contract as ended, in addition to suing for damages.

Question 3

Which of the following is true with regard to tender of performance?

Accepted Answer

Pete has fulfilled his obligation by showing up at the agreed time and place. If Valley's manager refuses service, Pete can consider it a breach of contract and is not required to make another attempt.

Question 4

In the case of an anticipatory breach

Accepted Answer

An anticipatory breach occurs when one party indicates in advance that they will not fulfill their contractual obligations. The non-breaching party can then choose to demand performance or sue for breach before the actual time for performance has arrived, without having to wait for the breach to occur.

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. Dagney 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 emailed her publisher, admitting that she would not have the book finished in time. What are the publisher's options?

Accepted Answer

The publisher has the right to demand performance or sue because Dagney's failure to meet the deadline constitutes a breach of contract, especially since the timing was critical as noted in the contract.

Question 6

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 suffers damages as a result and wants to sue Perm, what would the likely result be?

Accepted Answer

The exemption clause is designed to limit liability for negligence, not deliberate wrongful acts. Since Perm deliberately put the wrong pricing information on the website, this act falls outside the protection of the exemption clause.

Question 7

Which of the following is false with regard to ending a contract by agreement?

Accepted Answer

B is false because once a contract is formed, one party cannot unilaterally end the contract simply because they find a better deal. Ending a contract typically requires mutual agreement, performance of the contract terms, or legal justification for termination.

Question 8

On the February 1, Smyth contracted to buy Dupont's van. They had 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 to Smithers on March 5 for $7600. On February 22, Dupont called Smyth and said he wasn't going to sell because he had decided to keep the van. On these facts, which of the following is false?

Accepted Answer

Dupont's express repudiation of the contract before the performance date allows Smyth to treat the contract as breached immediately and sue for breach of contract without having to wait until after the performance date.

Question 9

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

Accepted Answer

D is false because damages can be awarded for breaches of both conditions and warranties in a contract, not just for breaches of conditions.

Question 10

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

Accepted Answer

Option D is correct because if Roscoe attempts to fulfill his contractual obligation by delivering lumber to Jed as agreed and Jed refuses to accept the delivery, Roscoe has grounds to sue for breach of contract. This is because Jed's refusal to accept the delivery constitutes a breach of their agreement, and Roscoe has fulfilled his part of the contract by attempting delivery.

Question 11

In Blundon v. Ashton Pools, the plaintiff sued the defendant after discovering cracks in the patio that surrounded the pool the defendant had installed for them. The defendant claimed that the exemption clause in the contract excused them from liability. What properly described the outcome in this case?

Accepted Answer

The exemption clause was not applied because Ashton Pools did not adequately bring the clause to the attention of Blundon, making it ineffective in excusing them from liability for the damages.

Question 12

Suppliers of goods and services try to eliminate their liability, and the courts have discouraged this by applying the principle that some failures are so significant that there is no performance of the contract. This concept is known as

Accepted Answer

The concept of fundamental breach refers to a failure so significant in a contract that it is seen as if there is no performance at all, leading courts to often not allow parties to limit their liability in such cases.

Question 13

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

Accepted Answer

The Supreme Court of Canada held that the contract had been substantially performed and the option to purchase was still available, indicating that a minor breach which is immediately corrected does not necessarily void the contract or the options within it.

Question 14

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

Accepted Answer

The answer of Which one of the following is true...

Question 15

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

Accepted Answer

A contract ends by agreement when a "condition subsequent" occurs, which is a clause that specifies the contract will terminate upon a certain event.

Question 16

Which one of the following is false with regard to exemption (exclusion) clauses?

Accepted Answer

- Exemption clauses are not universally prohibited in sales of goods contracts. Their validity and enforceability depend on how they are incorporated into the contract, whether they are reasonable under the Unfair Contract Terms Act 1977 (in the UK, for example), and other legal considerations.

Question 17

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

The "as is" clause in a written and signed contract, like the one Ralph agreed to when buying the used lawnmower, typically indicates that the buyer accepts the item in its current condition, and the seller is generally not liable for any issues that arise with the item after the sale. This clause is a clear and agreed-upon exemption clause that can effectively limit the seller's liability.

Question 18

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

Accepted Answer

When an anticipatory breach occurs, the victim has the right to sue immediately without waiting to see if the contract will be performed. This allows the injured party to seek remedies right away rather than having to wait until the contract's performance date, which could potentially mitigate their damages and uncertainty.

Question 19

The principle of substantial performance can best be described as when

Accepted Answer

Substantial performance occurs when all or most of the contractual obligations are fulfilled, allowing for minor deviations that do not significantly affect the overall purpose of the contract.

Question 20

Cleo entered into a contract with Harvey in June to redecorate his apartment before Christmas. However, in the middle of October, she informed him that she would not be able to do his job because she had been offered a big contract in Japan that would take her away until spring. Which of the following is true with respect to this situation?

Accepted Answer

Cleo's announcement that she will not fulfill the contract constitutes anticipatory repudiation, allowing Harvey to pursue legal remedies without waiting until the contract's performance date.

Quiz 9: The End of the Contractual Relationship