Question 1

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

Accepted Answer

While quantum meruit does allow for payment based on the value of the services provided, it is not an unrestricted agreement to pay any amount the supplier chooses. The payment typically needs to be reasonable and reflect the fair market value of the services.

Question 2

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

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Question 3

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

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Question 4

Identify and briefly explain when a court would rely on the customs of trade to imply a term into a contract.

Accepted Answer

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Question 5

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

Accepted Answer

This is because affirmative action, such as clicking a box or typing a signature, shows that the individual has explicitly agreed to the terms and conditions of the agreement. This eliminates any ambiguity or confusion about whether the customer actually agreed to the terms.

Question 6

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 true. When a product contains a shrink-wrap licence, there will typically be a notice on the packaging indicating that opening the package constitutes agreement to the licence terms. This means that by opening the package, the user is agreeing to the terms of the licence agreement that governs their use of the product.

Question 7

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

Accepted Answer

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Question 8

Because a party is never successful in litigation where reliance is made on trade customs to imply a term into a contract, the more prudent course is to ensure that all important terms are explicitly recited.

Accepted Answer

Trade customs can be used to imply terms into a contract if they are well-known, certain, and reasonable, and both parties are aware of them. However, it is generally more prudent to explicitly state important terms to avoid ambiguity.

Question 9

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

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Question 10

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

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Question 11

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 licence does not require the user to actively click an "I accept" icon, but rather the terms are displayed somewhere on the website and using the website implies acceptance of the terms.

Question 12

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

Accepted Answer

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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

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Question 14

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

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Question 15

Briefly explain what is meant by the parol evidence rule. Identify when a court might avoid applying the parol evidence rule.

Accepted Answer

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Quiz 7: The Terms of a Contract