Question 1

Parties to an e-contract generally have the same legal remedies as traditional contracts.

Accepted Answer

Parties to an e-contract have the same legal remedies as traditional contracts as long as the e-contract meets the same legal requirements as a traditional contract, such as offer and acceptance, consideration, and intent to create legal relations.

Question 2

Provincial consumer protection legislation provides clarity with e-contracts for a business to business transaction.

Accepted Answer

Provincial consumer protection legislation typically focuses on consumer transactions, not business-to-business transactions.

Question 3

As a general rule, a contract must be fully performed before any payments are made. Which is an exception to this rule?

Accepted Answer

Substantial performance is an exception to the general rule that a contract must be fully performed before any payments are made. Under this exception, if one party has substantially performed its contractual duties but has not fully completed them, the other party may be required to make a payment based on the value of the work completed.

Question 4

An injunction is a discretionary remedy.

Accepted Answer

An injunction is a discretionary remedy, meaning that it is up to the court's discretion whether or not to grant it. In this case, Barnum may seek an injunction to prevent Mario from performing at the competitor's opera house in violation of their exclusive agreement.

Question 5

Which of the following is not a way to end a contract?

Accepted Answer

Obligations of law are not a method to end a contract but rather refer to legal requirements that must be followed during the execution of a contract. Ending a contract typically involves breach, frustration, or mutual agreement between the parties involved.

Question 6

When you return an item you have purchased and get your money back your contract has been rescinded.

Accepted Answer

When you return an item and get your money back, the contract is considered rescinded, meaning that both parties are released from their obligations under the agreement.

Question 7

In an e-contract dispute, the Courts will determine the forum to be used based on a "balance of convenience."

Accepted Answer

The Courts will consider factors such as the location of the parties, the place of performance of the contract, and any applicable laws in determining the forum for the e-contract dispute. The goal is to achieve a balance of convenience for all parties involved.

Question 8

Which of the following is not required for a breach of contract to end the contract?

Accepted Answer

A breach of warranty does not automatically end the contract. It may entitle the innocent party to damages, but it does not give them the right to terminate the contract. Only a breach of a condition or an essential term can result in the termination of a contract. Breach of all terms would also terminate the contract, but this is unlikely as most contracts have both essential and non-essential terms.

Question 9

Which of the following is not a discharge of a contract by agreement?

Accepted Answer

Operation of law refers to discharge of contract due to circumstances beyond the control of the parties, such as death or illegality. It is not a discharge by agreement, which means an agreement between the parties to end the contract. A, C, and D are all examples of discharge by agreement.

Question 10

The contract between Bayson's Department Store and Clemson's Manufacturing contains a clause that allows either party to end the contract on 60 days' notice and the payment of liquidated damages, which are set at a reasonable amount. This clause is a(n):

Accepted Answer

The clause described in the contract between Bayson's Department Store and Clemson's Manufacturing is an option to terminate clause. This clause allows either party to end the contract on 60 days' notice and the payment of liquidated damages, which are set at a reasonable amount. This gives both parties the option to terminate the contract if they feel they need to, without breaching the terms of the agreement.

Question 11

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre and nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum may request the court to issue an injunction to prevent Mario from performing at the competitor's opera house.

Accepted Answer

Mario breached the one-year exclusive contract with Barnum by entering into another agreement with a competitor. As a result, Barnum has the right to seek an injunction to prevent Mario from performing at the competitor's opera house.

Question 12

Courts will order equitable remedies for all breaches of contract.

Accepted Answer

While courts may order equitable remedies for some breaches of contract, not all breaches will warrant such remedies. The type of remedy will depend on the specific circumstances of the breach and the contract itself.

Question 13

Jurisdiction and governing law are issues that arise in breaches of e-contracts.

Accepted Answer

Jurisdiction and governing law are important factors in determining the enforcement and validity of e-contracts when a breach occurs. These issues involve determining which country’s laws apply and which jurisdiction has the authority to hear the case.

Question 14

A "balance of convenience" means that the courts will use the forum with the most substantial and real connection to the issue.

Accepted Answer

A balance of convenience is a legal principle used by a court to determine the most appropriate jurisdiction to hear a case based on the convenience of the parties and witnesses, the location of the evidence, and the interests of justice. The court will consider many factors, including the forum with the most substantial and real connection to the issue, when making this determination.

Question 15

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The court may also order Mario to continue to perform at Barnum's theatre because he had promised to work only for him.

Accepted Answer

Mario breached the terms of his exclusivity agreement with Barnum by entering into another agreement with a competitor. The court cannot force him to continue performing at Barnum's theatre as that would be enforcing an illegal contract.

Question 16

The equitable remedy of rescission restores the parties to their original position.

Accepted Answer

Rescission is a remedy that cancels a contract and restores the parties to their original position before the contract was made. It is an equitable remedy that aims to undo the effects of a contract that was entered into under mistake, fraud, undue influence, or duress.

Question 17

Provincial consumer protection legislation provides clarity with e-contracts for a business to consumer transaction.

Accepted Answer

Provincial consumer protection legislation sets out specific requirements for e-contracts in business to consumer transactions, to ensure transparency and protection for the consumer.

Question 18

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre and nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The monetary amount that Barnum would be entitled to receive as compensation from Mario would be the amount of the loss that Mario could reasonably have foreseen at the time that the contract was entered into by the parties.

Accepted Answer

This is the principle of foreseeable damages, which means that the party who breaches the contract is responsible for the damages that the other party could reasonably have foreseen at the time the contract was signed. Therefore, Barnum would be entitled to receive compensation for the loss that he could have reasonably foreseen as a result of Mario's breach of contract.

Question 19

Which of the following type of contract does not have a duty of good faith in performance?

Accepted Answer

Contracts to purchase a cell phone are primarily transactional and do not inherently include a duty of good faith in performance in the same way as contracts that involve ongoing relationships or significant trust, such as insurance contracts, employment agreements, or tender processes.

Question 20

Dick agreed to paint Jane's house for $4,000, inside and out. Normally, it would have cost Jane $6,500 but Dick felt sorry for her because she was a single mother with four children and not much money, so he decided to give her a good deal. When Dick had painted everything except the kitchen ceiling, Arthur asked him to go on a fishing holiday, and Dick, who was rather irresponsible, decided he had done enough painting. He left a note for Jane saying "You've had more than your money's worth with what I've done already. I'll expect your cheque for $4,000 to be at my office when I return in two or three weeks." Which of the following statements is correct?

Accepted Answer

Dick has substantially performed the contract by completing most of the work, except for the kitchen ceiling. Therefore, he is entitled to the agreed payment minus the cost for Jane to have the remaining work completed by someone else.

Quiz 7: Contracts: Ending Contracts

Parties to an e-contract generally have the same legal remedies as traditional contracts.

Provincial consumer protection legislation provides clarity with e-contracts for a business to business transaction.

As a general rule, a contract must be fully performed before any payments are made. Which is an exception to this rule?

An injunction is a discretionary remedy.

Which of the following is not a way to end a contract?

When you return an item you have purchased and get your money back your contract has been rescinded.

In an e-contract dispute, the Courts will determine the forum to be used based on a "balance of convenience."

Which of the following is not required for a breach of contract to end the contract?

Which of the following is not a discharge of a contract by agreement?

The contract between Bayson's Department Store and Clemson's Manufacturing contains a clause that allows either party to end the contract on 60 days' notice and the payment of liquidated damages, which are set at a reasonable amount. This clause is a(n) :

Courts will order equitable remedies for all breaches of contract.

Jurisdiction and governing law are issues that arise in breaches of e-contracts.

A "balance of convenience" means that the courts will use the forum with the most substantial and real connection to the issue.

The equitable remedy of rescission restores the parties to their original position.

Provincial consumer protection legislation provides clarity with e-contracts for a business to consumer transaction.

Which of the following type of contract does not have a duty of good faith in performance?