Question 1

Shamira offered to purchase Brendan's automobile for $3,050 cash, with Brendan to deliver the vehicle the next Wednesday, at which time Shamira would pay the $3,050. On the Wednesday, when Brendan did not deliver, Shamira went to Brendan's home, and found him in his garden. Shamira offered Brendan the money, but Brendan refused, saying that he had changed his mind, and did not wish to sell his automobile. If Brendan refused the tender of the exact amount of money, Shamira would be entitled to take legal action against Brendan for breach of contract.

Accepted Answer

Shamira and Brendan had a valid contract that included an offer, acceptance, and consideration (the car in exchange for $3,050). Brendan's refusal to complete the transaction as agreed upon constitutes a breach of contract, giving Shamira the right to seek legal recourse.

Question 2

In the contract between Canada Oil Company and the Government of Iran for the supply of Iranian crude oil, there is a clause that allows either party a period of one year to bring forward to court any claim arising from events subject to the contract. Any claim raised after one year from the events which give rise to it is agreed to be unenforceable. Had the parties not provided for this themselves, the common law would have provided a somewhat similar measure, represented by the doctrine of

Accepted Answer

The doctrine of frustration in common law refers to an unforeseen event that renders contractual obligations impossible to fulfill, or fundamentally changes the party's principal purpose for entering into the contract, thus excusing them from performance. This is somewhat similar to the clause described, as both deal with the effects of unforeseen events on contractual obligations, although the specific clause in question sets a time limit for claims rather than addressing impossibility or fundamental change directly.

Question 3

Bacall, a building contractor, bid for and won the tender to construct Klegman's Shopping Centre. Due to rampant, unexpected inflation, she found she would not quite break even on the project and she asked Klegman to renegotiate the price. Klegman pointed out that there was no provision in the contract for that and said, "A deal's a deal."

Accepted Answer

Bacall is bound by the terms of the contract she entered into with Klegman. The fact that unexpected inflation occurred does not provide a legal basis for her to renegotiate the contract terms or claim it as frustrated, materially altered, or unjust enrichment without specific provisions in the contract allowing for such adjustments. Contracts are legally binding agreements, and unexpected changes in economic conditions typically do not discharge the obligations agreed upon, unless specifically accounted for in the contract's terms.

Question 4

The University of Excellence has decided that it wants to only accept cash payments for tuition. Its current contract states that payment may be made by cash, cheque or credit card. How can it amend the contract?

Accepted Answer

The contract can be amended by either specifying that only cash payments are accepted or by deleting the clause entirely, which would imply only cash is accepted if no other payment methods are mentioned.

Question 5

Shamira offered to purchase Brendan's automobile for $3,050 cash, with Brendan to deliver the vehicle the next Wednesday, at which time Shamira would pay the $3,050. On the Wednesday, when Brendan did not deliver, Shamira went to Brendan's home, and found him in his garden. Shamira offered Brendan the money, but Brendan refused, saying that he had changed his mind, and did not wish to sell his automobile. Brendan would be entitled to reject the tender of payment if it consisted of $3,100 in cash, instead of the required $3,050 in cash.

Accepted Answer

Brendan was entitled to reject the tender of payment if it consisted of $3,100 in cash, instead of the required $3,050 in cash, because the offer was for $3,050 cash, and Brendan was not obligated to accept any other form of payment.

Question 6

John Stevenson, a plumber, had a contract to repair a slow leak in a toilet in Dr. Ibsen's medical clinic. Because it had to be done when no patients were there, John Stevenson agreed to come on a Saturday. However, when he got there, he found a notice on the door saying "Got a chance for a free trip to Hawaii. Come next Saturday at the same time. Thanks. Dr. Ibsen." John Stevenson did not turn up the next Saturday and, when Dr. Ibsen called to find out why, John Stevenson said he had promised to take his wife shopping that day, and he doubted if he would be able to find the time in the future.

Accepted Answer

Dr. Ibsen breached the contract by not being available on the agreed date, which was the first Saturday, without prior agreement from John Stevenson to reschedule.

Question 7

How can contracts be discharged?

Accepted Answer

Contracts can be discharged through various means including tender of performance (offering to perform one's obligations), operation of law (e.g., bankruptcy, statute of limitations), agreement of the parties (mutual agreement to end the contract), and condition subsequent (a future event that terminates the obligations of the parties).

Question 8

In the contract of sale of Jones' house to Greenwood, no particular method of payment was specified. Greenwood's lawyer has heard rumours that Jones got a much better offer after he signed the deal with Greenwood, and, from the attitude displayed by Jones recently, Greenwood's lawyer thinks Jones may be hoping the deal will fall through. Greenwood

Accepted Answer

The answer of In the contract of sale of Jones'...

Question 9

Kirk entered into a contract with Yemmi to haul gravel in his large tandem truck from Yemmi's gravel pit to a building site some five kilometres distant, at $60 per load. Before Kirk was to begin performance, his truck was destroyed in a serious traffic accident. Because Kirk is bound in contract, Yemmi can require Kirk to purchase a new truck to perform the agreement.

Accepted Answer

Under the doctrine of impossibility, Kirk's obligation to perform under the contract is discharged due to the unforeseen destruction of his essential means of performance (his truck), making it impossible for him to fulfill the contract as agreed.

Question 10

In the contract between Bayson's Department Store and Clem's Manufacturing, there is 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

Accepted Answer

An option to terminate clause in a contract allows either party to end the agreement under specific conditions, such as providing a notice within a certain period and paying liquidated damages, as described in the scenario.

Question 11

Under the Frustrated Contracts Act; can Delores keep a $20,000 deposit?

Accepted Answer

Under the Frustrated Contracts Act, when a contract is frustrated, parties are typically entitled to recover money paid or payable before the frustrating event, unless a specific clause states otherwise.

Question 12

For contracts concerning the purchase of land, once payment in full in accordance with the terms of the contract has been offered by the purchaser, if not provided in turn by the vendor with a deed to the property, the purchaser may

Accepted Answer

The correct legal remedy for a purchaser in a land purchase contract, who has offered full payment but has not received the deed from the vendor, is to bring an action for specific performance. This legal action compels the vendor to complete the sale as agreed, by transferring the deed to the purchaser.

Question 13

When does a waiver have to be in writing and under seal?

Accepted Answer

The answer of When does a waiver have to be...

Question 14

In the contract between Gamil's Building Materials store and Hightrees Logging and Lumber Company for the supply of lumber, there is a clause that allows either party to end the contract on 10-days' notice should actions of logging protesters on Hightrees' property bring logging operations to a temporary halt. This clause is

Accepted Answer

The answer of In the contract between Gamil's Building Materials...

Question 15

Delores is an opera singer who is scheduled to perform in Toronto on October 17^th. She gets laryngitis and is unable to sing. The contract does not include any provisions regarding Delores' health. Is she obliged to perform?

Accepted Answer

The contract is frustrated due to an unforeseen event (Delores' laryngitis), which makes performance impossible. There's an implied term in performance contracts like this that the performer must be in good health to perform.

Question 16

Carson, a fruit wholesaler, delivered bananas to Phil's Fruit Market. A sizeable portion of the truckload was of questionable quality, but no one at Phil's Fruit Market had objected to delivery. After a falling out over another contract a year later, Phil's Fruit Market sued Carson over the banana shipment. Of the following, Carson's best defence would be:

Accepted Answer

Laches is a defense that argues the plaintiff waited too long to bring the lawsuit, causing it to be unfair to the defendant. Since Phil's Fruit Market waited a year to sue over the banana shipment, Carson could argue that Phil's delay has prejudiced his ability to defend against the lawsuit.

Question 17

Shamira offered to purchase Brendan's automobile for $3,050 cash, with Brendan to deliver the vehicle the next Wednesday, at which time Shamira would pay the $3,050. On the Wednesday, when Brendan did not deliver, Shamira went to Brendan's home, and found him in his garden. Shamira offered Brendan the money, but Brendan refused, saying that he had changed his mind, and did not wish to sell his automobile. If Shamira had offered Brendan exactly $3,050 in cash, she had made a valid tender of payment.

Accepted Answer

A valid tender of payment occurs when the exact amount owed is offered in the agreed-upon manner at the agreed-upon time and place. Shamira offering the agreed $3,050 on the specified Wednesday meets these conditions for a valid tender.

Question 18

In the contract between Canada Oil Company and the Government of Iran for the supply of Iranian crude oil, there is a clause that allows either party to end the contract on declaration of war between Canada and Iran, or the imposition of United Nations trade sanctions on either country. This clause is

Accepted Answer

The answer of In the contract between Canada Oil Company...

Question 19

King, a library sciences student, was hired at $400 a week to catalogue the library of the very wealthy Earle family. He estimated that the work would be completed in early August, giving him a month of vacation, which he felt he badly needed. For the first three days on the job, King was kept busy running errands for Mr. Earle, who had a sprained ankle, and keeping him from getting bored. On the fourth day, Mrs. Earle was using the library for her bridge club and a meeting of her church Flower Committee, and on Friday she kept King busy running errands for the dinner party she was giving that night. After two weeks of this, King quit and took a labouring job for $275 a week.

Accepted Answer

The Earles' behavior, which prevented King from performing his contracted cataloguing duties, could be seen as making the contract's fulfillment impossible, thus potentially allowing King to recover the salary difference if a court agrees.

Question 20

Shamira offered to purchase Brendan's automobile for $3,050 cash, with Brendan to deliver the vehicle the next Wednesday, at which time Shamira would pay the $3,050. On the Wednesday, when Brendan did not deliver, Shamira went to Brendan's home, and found him in his garden. Shamira offered Brendan the money, but Brendan refused, saying that he had changed his mind, and did not wish to sell his automobile. If Shamira had in her possession three $1,000 bills, and one $100 bill, her tender would be invalid, even though she had cash in excess of the amount requested.

Accepted Answer

Shamira's tender would be invalid because she did not have the exact amount of $3,050 in her possession. She had three $1,000 bills and one $100 bill, which totals $3,100.

Quiz 13: Performance of Contractual Obligations