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Contemporary Canadian Business Law

Business

Quiz 14 :

Breach of Contract and Remedies

Quiz 14 :

Breach of Contract and Remedies

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Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Repudiation before the date fixed for performance is known as anticipatory breach.
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True False
Answer:

Answer:

True

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Trendy Imports entered into a contract on June 1st with Neat Things, a small upscale gift shop, to supply it with 100 tooled leather boxes. Delivery was to be made on September 15th so that the boxes could be on display in the store by October 15th, ready for the pre-Christmas rush. On August 6th, Trendy notified Neat Things that a dock strike in Italy was holding up the shipment and, if the boat on which they were loaded could not leave port within a very few days, Trendy would not be able to make the delivery on September 15th. In this situation,
Free
Multiple Choice
Answer:

Answer:

B

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Ming was dismissed from his senior management position by his employer. He was very upset and said "I'm going to fight this in court." He did not look for another job. The court held that he had been wrongfully dismissed and said that the proper notice period was 6 months.
Free
Multiple Choice
Answer:

Answer:

C

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Eric was painting the interior of Erna's house. While he was painting, Erna was constantly nattering at him. One day, he quietly packed up all of his equipment, waved good-bye and left. He had almost completed the job and had two walls left in the small bedroom. What did Eric's actions constitute?
Multiple Choice
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In rare cases, where monetary damages would be an inadequate compensation for breach of contract, the courts may decree an order of specific performance of the contract. How does this differ from an ordinary monetary judgement?
Multiple Choice
Answer:
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Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Robin's decision not to proceed with the sale was an express repudiation of the contract.
True False
Answer:
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Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Because Robin's bicycle was stolen, Felicia is entitled to demand that Robin replace the stolen bicycle with a similar one and sell it to her.
True False
Answer:
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Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Felicia is entitled to claim damages for the difference in value between the agreed price and the price of a similar bicycle on the market.
True False
Answer:
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Eric was painting the interior of Erna's house. While he was painting, Erna was constantly nattering at him. One day, he quietly packed up all of his equipment, waved good-bye and left. He had almost completed the job and had two walls left in the small bedroom. What remedy is available to Erna?
Multiple Choice
Answer:
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Awards which are not compensation of the plaintiff but rather punishment of the defendant for a breach of contract which is deceitful, malicious, or offensive to ordinary standards of morality are known as which kind of damages?
Multiple Choice
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Petra agreed to purchase franchise rights from Valley Cream Inc. to sell VCI ice cream from small trucks in a large metropolitan area. Her deposit on the transaction was $15,000 against a final price of the rights at $40,000. The contract contained a term, of which Petra was aware, that the deposit would be forfeited as liquidated damages if she did not follow through on the deal. Early on in the process, Petra could not get the financing she needed, and was forced to back out. Valley Cream, whose file contained only the copy of the agreement, refused to return the money. The most important part of Petra's Statement of Claim will be that relating to
Multiple Choice
Answer:
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In which of the following cases will a court order specific performance of the contract? i. Gigantic Electrical Warehouse repudiates its contract with Video Co. to purchase 2,000 VCRs. The loss of this deal might push Video into bankruptcy. ii. Joan, a great opera singer, decides it is too far from New York to the National Arts Centre in Ottawa and so she will not perform at the sold-out concert there next week for which she had contracted months ago. iii. Mitsuko had a contract with Refined Galleries to purchase a small Rembrandt drawing, which Refined wants now to sell to a regular and very wealthy customer of theirs. They will not give Mitsuko the drawing. iv. John is refusing to perform a contract to sell his house to Eli. Eli has wanted to live in that house since he was a small boy. v. Alvin is refusing to perform a contract to purchase Huma's house. Huma has another purchaser but her highest offer is $10,000 less than Alvin's.
Multiple Choice
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Paul ordered a motorbike from Moto-Haus. He had reviewed all the specifications and told the salesperson of his final choice. When the bike arrived, Paul found that it did not live up to the fuel efficiency that he expected or that was claimed in the brochure. He took the bike back to Moto-Haus, and demanded the return of his money, which was refused. Paul would be best advised to:
Multiple Choice
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Princess Alicia hires Renaldo, the artist, to paint her portrait. The two disagreed. Renaldo said, "I'm done!" He left the palace. What did Renaldo's actions constitute?
Multiple Choice
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Princess Alicia hires Renaldo, the artist to paint her portrait. The two disagreed. Renaldo said, "I'm done!" He left the palace. What remedy is available to Princess Alicia?
Multiple Choice
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Zenia contracts with Yvonne for a supply of specialized computer components worth $6,000, which she needs to meet a contract to supply Wendy with 60 laptop computers, a contract which is worth $65,000 to Zenia. Zenia makes it clear to Yvonne that her contract with Wendy is vital to let her get established in the market and that it is imperative that Yvonne meet the deadline. "If you can't," she says, "I'll take the business to someone who can." Yvonne wants the business badly, so, against her better judgment, she agrees to a clause in the contract which says that, for every day delivery is late, she will pay Zenia $10,000.
Multiple Choice
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Catherine agreed to purchase franchise rights from a hamburger restaurant chain to open her own restaurant. Her deposit on the transaction was $10,000 against a final price of the rights at $750,000. The contract contained a term, of which Catherine was aware, that the deposit would be forfeited if she did not follow through on the deal. Early on in the process, Catherine could not obtain ownership of the site upon which she intended to construct her restaurant and was forced to back out. The hamburger chain refused to return her deposit. The most correct statement below is:
Multiple Choice
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Vince agreed to paint Jen's house for $4,000, inside and out. Normally, it would have cost Jen $6,500 but Vince 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 Vince had painted everything except the kitchen ceiling, Matt asked him to go on a fishing holiday with him, and Vince, who was rather irresponsible, decided he had had enough painting. He left a note for Jen 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?
Multiple Choice
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Joe agreed to hire Ron to shovel his sidewalk but they did not agree on a price. Ron shovelled the snow, but they could not agree on a price. Does quantum meruit apply?
Multiple Choice
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Trendy Imports entered into a contract on June 1st with Neat Things, a small upscale gift shop, to supply it with 100 tooled leather boxes. Delivery was to be made on September 15th so that the boxes could be on display in the store by October 15th, ready for the pre-Christmas rush. On August 6th, Trendy notified Neat Things that a dock strike in Italy was holding up the shipment and, if the boat on which they were loaded could not leave port within a very few days, Trendy would not be able to make the delivery on September 15th. Suppose Neat Things does nothing immediately, the boat sails and the delivery would have been made on time, but the boat sinks in a hurricane on August 23rd.
Multiple Choice
Answer:
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