Question 1

What is the effect of frustration on a contract? What,at common law,happens to a deposit paid prior to a contract being frustrated?

Accepted Answer

The answer of What is the effect of frustration on...

Question 2

Jack sells Payless Habitat 750 hats.These are yet to be produced from a new factory in Centreville,Ontario.Delivery day on the contract is in six months' time.After the contract is entered into,the town of Centreville refused a conditional land permit necessary for the building of the factory.As it turns out,Jack will have to find another piece of land for his factory.Is Jack bound by his contract to supply hats? Give reasons for your answer.

Accepted Answer

The answer of Jack sells Payless Habitat 750 hats.These are...

Question 3

John and Sally enter into a contract for the lease of a used automobile.The term of the contract states that John can terminate the lease agreement if Sally fails to make a required lease payment within 10 days of the due date.Sally fails to make the required payment and on the eleventh day declares the contract cancelled.Will Sally be successful? Explain your answer.

Accepted Answer

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Question 4

A sells goods to B for $5000.00 and no deposit is paid.Before the balance of the goods is delivered,the goods are destroyed.In this case,at common law,explain whether the seller will get anything for the value of the goods delivered.

Accepted Answer

The answer of A sells goods to B for $5000.00...

Question 5

A sells goods to B for $5000.00 and B gives A a deposit of $1000.00.Both A and B agree that the risk remains with the seller,A,until the shipping documents are delivered to the purchaser,B.A ships two of the goods to B and then the rest of the goods are destroyed while in A's possession at no fault of A.In this case,at common law,what would happen to B's deposit?

Accepted Answer

The answer of A sells goods to B for $5000.00...

Question 6

A debtor who makes an unsuccessful but reasonable attempt to pay will be free from further liability on interest owing on the amount.

Accepted Answer

This is known as the doctrine of tender. If the debtor offers to pay the full amount owing but the creditor refuses to accept payment, the debtor will be released from further liability for interest on the debt. However, the tender must be made in good faith and for the full amount owed.

Question 7

Clyde entered into a contract with Lucy Produce to supply eight tons of tomatoes.A flood destroyed the field where Clyde was growing his tomatoes,so he refused to supply the tomatoes.What legal grounds could Clyde advance for not supplying the tomatoes? What is Lucy Produce's best defence? What is the likely outcome of an action commenced by Lucy Produce for breach of contract?

Accepted Answer

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Question 8

Give an example of self-induced frustration.What is the legal result?

Accepted Answer

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Question 9

Jack agrees to paint John's home for $500.00.Wishing to re-negotiate the deal,Jack,the night before the job,throws away his paint brushes and other equipment.The next day he tells John that thieves have stolen his equipment and so the contract will have to be cancelled.Jack's conduct is not a breach of the contract because the contract is frustrated.

Accepted Answer

Jack's conduct is not an example of frustration of contract. Frustration of contract occurs when an unforeseen event occurs which makes it impossible to carry out the terms of the contract. In this case, Jack intentionally threw away his equipment to create a situation where he would not be able to complete the contract. This behavior is a breach of contract.

Question 10

On October 1,Mary Miller,a world-renowned entertainer,entered into a contract with Quality Production Ltd.to perform a concert in Sudbury,Ontario,on December 15.On October 15,Quality signed a contract to rent the Centennial Hall from its owners,Business Buildings Ltd.,for the evening of December 15.Business Bldg.was advised of the purpose for which Quality was renting the hall,and Quality paid Business Bldg.a deposit of $5000.Quality had tickets printed,advertised the concert,hired a band,and paid Mary Miller a $7500 advance.Expenses by December 10 totalled $12 500 excluding the advance to Mary Miller.
a.If on December 10,the Centennial Hall burned to the ground through no fault of Business Bldg.,would Quality be able to sue Business Bldg.for its losses,and if so,what would Quality likely recover? Explain any legal principles and defences the parties may rely upon.
b.If on December 10,the above (a)did not happen but Mary Miller died,could Quality successfully sue Mary Miller's estate for damages,and if so,what would Quality likely recover? What legal principles and defences would be available to the parties?

Accepted Answer

The answer of On October 1,Mary Miller,a world-renowned entertainer,entered into...

Question 11

Contracts can be discharged by agreement.Name and describe four examples of discharge by agreement.

Accepted Answer

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Question 12

Explain the effect of a condition subsequent.

Accepted Answer

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Question 13

Charles and his family live in Halifax.He was offered a good accounting position at Johnstone & Custer Ltd.in Vancouver.He agreed to take the job if the company could find his family suitable housing in the vicinity of the company.After two months,and having been presented with 17 different "suitable" houses,Charles declared that the condition to the employment contract had not been met.Does the firm Johnstone & Custer have any legal claim on the employment contract?

Accepted Answer

The answer of Charles and his family live in Halifax.He...

Question 14

Explain why a waiver might not be enforceable.

Accepted Answer

The answer of Explain why a waiver might not be...

Question 15

When there is a contract for sale of goods,destruction of the source of the goods will frustrate the contract.

Accepted Answer

The answer of When there is a contract for sale...

Question 16

What is tender of performance,and why would a party to a contract make a tender of performance?

Accepted Answer

The answer of What is tender of performance,and why would...

Question 17

A truck slides off a mountain road in a snow storm.The contents,Nike shoes,are spread all over a ravine far below.Explain how the seller of the goods,who retained title,might use frustration in his defence.

Accepted Answer

The answer of A truck slides off a mountain road...

Question 18

An agreement by parties to a contract not to proceed with performance is not supported by consideration.

Accepted Answer

An agreement by parties to a contract not to proceed with performance can be supported by consideration if both parties agree to release each other from their obligations, as this mutual release constitutes consideration for the agreement.

Question 19

Where the required elements for frustration in the Sale of Goods Act are present,the Frustrated Contracts Act will not apply.

Accepted Answer

The Sale of Goods Act includes provisions for frustration, which means that if those elements are present, the Frustrated Contracts Act will not apply. Therefore, the statement is true.

Question 20

Since any possible frustrating event can be made a term of the contract,why do we need the doctrine of frustration?

Accepted Answer

The answer of Since any possible frustrating event can be...

Quiz 12: The Discharge of Contracts