Question 1

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

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Question 2

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

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Question 3

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.

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Question 4

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 5

Explain why a waiver might not be enforceable.

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Question 6

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.

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Question 7

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?

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Question 8

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

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Question 9

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.

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Question 10

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

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Question 11

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?

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Question 12

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 in the sale of goods, so if those elements are present, the Frustrated Contracts Act would not apply.

Question 13

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.

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Question 14

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

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Question 15

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?

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Question 16

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 considered a breach of contract because he purposely disposed of his equipment in an attempt to cancel the contract, rather than external circumstances beyond his control frustrating the contract.

Question 17

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

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Question 18

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?

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Question 19

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 legal principle of tender of payment. If a debtor makes a reasonable attempt to pay but is unsuccessful due to no fault of their own (such as the creditor refusing payment), they will not be liable for further interest on the amount owed. However, they may still be liable for any costs associated with the attempted payment, such as bank fees.

Question 20

Explain the effect of a condition subsequent.

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Quiz 12: The Discharge of Contracts