Question 1

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

The answer of John and Sally enter into a contract...

Question 2

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 statement is correct, as per the principle of partial payment. If a debtor makes a reasonable attempt to pay but is unable to clear the full amount, any interest owing on the amount will be waived off and the debtor will only be liable to pay the principal amount.

Question 3

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 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

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 6

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

Accepted Answer

The answer of Give an example of self-induced frustration.What is...

Question 7

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 8

A frustrating event is one that was not foreseeable by the parties.

Accepted Answer

The answer of A frustrating event is one that was...

Question 9

A clause entitling an employer to dismiss an employee by giving notice of termination is an agreement to discharge a contract often referred to as an option to terminate.

Accepted Answer

The clause described is indeed an option to terminate agreement.

Question 10

Explain the effect of a condition subsequent.

Accepted Answer

The answer of Explain the effect of a condition subsequent....

Question 11

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 12

Bankruptcy does not discharge a bankrupt from all contractual obligations.

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

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Question 15

The producer of a "musical on ice" show booked a large hockey arena for a local date.Immediately before the scheduled show the arena was destroyed by fire.The evidence disclosed that the cause of the fire was arson and the owner was to blame.The producer sued the owner for breach of contract to compensate for losses sustained as a result of having to cancel the skating show.What will the court likely decide?

Accepted Answer

The answer of The producer of a "musical on ice"...

Question 16

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 has provisions for frustration of contracts, so it will apply in situations where the required elements for frustration are present. The Frustrated Contracts Act applies when a contract becomes impossible to perform or is otherwise frustrated due to an event outside the control of the parties involved, but if the Sale of Goods Act already covers the situation, the Frustrated Contracts Act will not apply.

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

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 19

For a contract to be fully discharged,one party must complete performance.

Accepted Answer

For a contract to be fully discharged, both parties involved must complete their obligations as specified in the contract, not just one party.

Question 20

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 a breach of the contract because frustration of a contract is a legal doctrine that applies in rare circumstances where an unforeseeable event, beyond the control of the parties, makes it impossible to perform the contract. Jack's intentional act of disposing of his equipment is not an unforeseeable event beyond his control.

Quiz 12: The Discharge of Contracts

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

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

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

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

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

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

A frustrating event is one that was not foreseeable by the parties.

A clause entitling an employer to dismiss an employee by giving notice of termination is an agreement to discharge a contract often referred to as an option to terminate.

Explain the effect of a condition subsequent.

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.

Bankruptcy does not discharge a bankrupt from all contractual obligations.

Explain why a waiver might not be enforceable.

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

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.

For a contract to be fully discharged,one party must complete performance.