Question 1

Joe owed Harry $500,but Harry was confused when Joe came to pay it back and refused to take the money for the payment.Explain Joe's legal position.

Accepted Answer

The answer of Joe owed Harry $500,but Harry was confused...

Question 2

A person who breaches a contract is responsible for all of the loss that flows from the breach,no matter how unforeseeable.

Accepted Answer

A person who breaches a contract is generally responsible for the loss that was foreseeable at the time the contract was made. They may not be responsible for loss that was completely unforeseeable or caused by an unrelated event.

Question 3

The courts are extremely reluctant to grant any compensation for the breaching party's partial performance of the agreement,unless the contractual obligations have been substantially performed.

Accepted Answer

The statement is true. The courts generally require substantial performance from the breaching party before considering any compensation for partial performance.

Question 4

In rare circumstances,the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

Accepted Answer

This is true. A mandatory injunction is a court order that requires someone to take a specific action or refrain from doing something. In the context of contract law, it may be issued when a party violates a contractual term that creates an ongoing problem that cannot be resolved through damages alone.

Question 5

Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.

Accepted Answer

Legal tender in Canada does include government-produced coins and bills, but there are limits on the amount of coins that can be used in a single transaction for certain denominations.

Question 6

Indicate the various ways that the contractual relationship can come to an end.

Accepted Answer

The answer of Indicate the various ways that the contractual...

Question 7

The victim of a breach cannot recover damages that she could have avoided if she had made a reasonable effort.

Accepted Answer

This principle is called "mitigation of damages" and it applies in many areas of law, including breach of contract and tort. The idea is that a victim is expected to take reasonable steps to minimize her losses after a breach or injury, and she cannot recover damages that could have been avoided with such steps. For example, if a company's computer system is hacked and customer data is stolen, the company may not be able to recover damages for losses that could have been avoided by implementing better security measures.

Question 8

A breaching party is responsible for all lost profits flowing from a breach of contract.

Accepted Answer

A breaching party is generally responsible for damages directly resulting from a breach of contract, including any actual losses suffered by the non-breaching party. However, lost profits are only recoverable if they were within the contemplation of the parties at the time the contract was made, and if they can be proven with reasonable certainty. Therefore, the breaching party is not necessarily responsible for all lost profits flowing from a breach of contract.

Question 9

Lack of financial ability,if proven,will establish frustration.

Accepted Answer

Lack of financial ability does not typically constitute a legal basis for the doctrine of frustration. Frustration applies when an unforeseen event fundamentally changes the nature of a contractual obligation, making it impossible to perform, not merely more difficult or expensive.

Question 10

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half,he will not be successful in claiming compensation for what he has done.

Accepted Answer

The answer of If a contractor has agreed to build...

Question 11

An injunction involves a court order to do something (to perform the contract),whereas specific performance usually involves an order to refrain from some offensive conduct.

Accepted Answer

The statement is incorrect. An injunction involves a court order to refrain from some offensive conduct, whereas specific performance involves an order to perform the contract.

Question 12

When a person informs you before performance is due that he is not going to perform the contract,you don't have to wait to see if he does perform; you can make other arrangements and sue right away.

Accepted Answer

This statement is true. When one party informs the other party beforehand that they will not fulfill the contract, the other party can take immediate action and sue them for breach of contract without waiting for the performance date. This is known as anticipatory breach or anticipatory repudiation.

Question 13

A deposit must be returned if no damage has taken place.

Accepted Answer

The answer of A deposit must be returned if no...

Question 14

Victims of breach have a duty to mitigate damages,meaning they must do what they can to keep those damages as low as possible.

Accepted Answer

This principle is known as the duty to mitigate damages and applies to both contract and tort law. It requires the victim of a breach or injury to take reasonable steps to minimize the damage or injury suffered. Failure to do so may result in a reduction of the damages awarded or a complete bar to recovery.

Question 15

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

Accepted Answer

The answer of Explain under what circumstances the tender of...

Question 16

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Accepted Answer

This is because consideration is a necessary element in any contract, and both parties must agree to the terms of ending the contract for it to be valid.

Question 17

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Accepted Answer

The answer of Will anything short of the complete performance...

Question 18

An injunction is designed to punish someone for breaching a contract.

Accepted Answer

An injunction is a court order that requires someone to stop doing something. It is a tool used to prevent harm or maintain the status quo, not to punish someone for breaching a contract.

Question 19

A breach of warranty allows victims to sue for damages,but they must go through with their obligations under the contract.

Accepted Answer

This statement is true. If a warranty is breached, the victim can pursue legal action for damages. However, the victim is still obligated to fulfill their part of the contract, such as paying for the product or service.

Question 20

Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him,on or before the payment due date.

Accepted Answer

The answer of Explain under what circumstances a creditor would...

Quiz 9: The End of the Contractual Relationship