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 made a valid offer to purchase Brendan's automobile for a specific amount of money and Brendan accepted the offer. However, Brendan breached the contract by not delivering the vehicle on the specified day and subsequently changing his mind about the sale. Therefore, Shamira would have legal grounds to take action against Brendan for breach of contract.

Question 2

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

True

Question 3

Under the Frustrated Contracts Act; can Delores keep a $20 000 deposit?
A)Yes.
B)Yes,if the contract included a termination clause.
C)No.
D)No,unless the contract included a termination clause.
E)None of the responses are correct.

Accepted Answer

Under the Frustrated Contracts Act, if a contract is frustrated due to an unforeseeable event that makes contract performance impossible, then the contract is automatically terminated and any deposits or payments made must be returned to the party who made them. Therefore, Delores cannot keep the $20,000 deposit if the contract was frustrated due to an unforeseeable event.

Question 4

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

Kirk's performance is impossible due to the destruction of his truck, therefore Yemmi cannot require him to purchase a new truck to perform the agreement. This is a case of frustration of contract.

Question 5

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
A)force majeure.
B)option to terminate.
C)condition subsequent.
D)condition precedent.
E)frustration.

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 6

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
A)a force majeure clause.
B)an option to terminate.
C)a condition subsequent clause.
D)a frustration of contract clause.
E)an example of laches.

Accepted Answer

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

Question 7

When does a waiver have to be in writing and under seal?
A)If the original contract was required to be in writing pursuant to the Statute of Frauds.
B)If the original contract was in writing due to the parol evidence rule.
C)If both parties have partially performed the contract.
D)If one party has partially formed the contract.
E)If one party has fully performed the contract.

Accepted Answer

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

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
A)should make sure he has a certified cheque for the full amount on the date of closing.
B)should make sure he has cash for the full amount on the date of closing.
C)should make sure that,if he has a personal cheque for the full amount,it is accompanied by a banker's letter guaranteeing the funds are there.
D)need not worry about how payment is made since,as long as it is the exact amount,Jones cannot legally refuse any mode of tender,provided that the contract did not stipulate a particular mode.

Accepted Answer

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

Question 9

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
A)a force majeure clause.
B)an option to terminate.
C)a condition subsequent clause.
D)a frustration of contract clause.
E)an example of laches.

Accepted Answer

This clause is an option to terminate, as it allows either party to end the contract on notice and payment of liquidated damages.

Question 10

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."
A)Bacall can assert that this is a frustrated contract,and,since no work has been started,claim back the bid deposit of $50 000 and walk away from the whole thing.
B)Bacall is stuck with the contract and there is nothing she can do but take the loss.
C)Bacall can say that there has been a material alteration of the terms of the contract,and that this has discharged the contract's terms regarding payment,so she can renegotiate them without losing the contract.
D)Because Klegman will be unjustly enriched if the contract is not renegotiated,Bacall can insist on a substitute agreement,which will discharge the old one.
E)Any of the responses can be true.

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 11

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?
A)Amend the payment clause to state that payment may be made by cash.
B)Amend the payment clause to state that payment by cheque or credit card will not be accepted.
C)The payment clause can be deleted.
D)The clause must be amended to reflect the payment of cash and not by cheque or credit card.
E)The clause must be amended to reflect the payment of cash and not by cheque or credit card or the clause may be deleted.

Accepted Answer

The answer of The University of Excellence has decided that...

Question 12

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.
A)Dr.Ibsen breached the contract on the first Saturday.
B)John Stevenson breached the contract on the second Saturday.
C)Neither man has breached the contract; it is simply suspended.
D)The contract was not breached since it was frustrated on the first Saturday because Dr.Ibsen could not be there.
E)Dr.Ibsen breached the contract on the first Saturday and John Stevenson breached the contract on the second Saturday.

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 13

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.
A)If a court agrees that the Earles' behaviour rendered the performance of the contract impossible,King may be able to recover the difference between the salaries for the two jobs.
B)Since King was getting paid,it was irrelevant that he was not able to do the cataloguing and,when he quit,he breached the contract.
C)If the Earles can convince a court that King abandoned the contract,he will get nothing.
D)Since King was getting paid,it was irrelevant that he was not able to do the cataloguing and,when he quit,he breached the contract.If the Earles can convince a court that King abandoned the contract,he will get nothing.
E)None of the responses are true.

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 14

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:
A)merger.
B)waiver.
C)laches.
D)novation.
E)extinguishment.

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 15

How can contracts be discharged?
A)Tender of performance
B)Operation of law
C)Agreement of the parties
D)Condition subsequent
E)All of the responses are correct.

Accepted Answer

All of the options listed are ways in which contracts can be discharged. Tender of performance occurs when one party offers to fulfill their obligations under the contract, while operation of law can occur through events such as bankruptcy or impossibility of performance. Agreement of the parties allows for both parties to mutually agree to discharge the contract, and condition subsequent allows for the contract to be discharged if a specific event or condition occurs.

Question 16

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? A)Delores is not required to perform.The contract is frustrated as there is an implied term of continued good health. B)Delores is required to perform as there is no provision terminating the agreement in the event of illness. C)Delores is required to perform,but because of her laryngitis she is allowed to lip synch. D)Delores is required to perform as there is an implied term of continued good health. E)Delores is not required to perform because of human rights legislation.

Accepted Answer

Delores is not required to perform because her inability to sing due to laryngitis has frustrated the contract. There is an implied term of continued good health, and her illness has made performance impossible. Therefore, the contract is frustrated, and she cannot be held to perform.

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 means that the buyer has offered to pay the full amount in cash. In this scenario, Shamira offered Brendan the full amount in cash, so her tender of payment was valid. However, Brendan did not deliver the vehicle, which is a breach of contract.

Question 18

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
A)bring an action for tender.
B)bring an action for termination.
C)bring an action for specific performance.
D)bring an action on the condition subsequent.
E)bring an action for delivery of legal tender.

Accepted Answer

The purchaser can bring an action for specific performance, which is a court order requiring the vendor to complete the transaction by delivering the deed to the property. This is often the preferred remedy for the purchaser, as it allows them to complete the purchase without needing to find a new property to buy. Options A, B, D, and E do not provide the same result as specific performance.

Question 19

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

This is because Brendan refused to sell the automobile, so the tender would be invalid regardless of the form of payment. It is not a matter of the cash amount being insufficient.

Question 20

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
A)a force majeure clause.
B)an option to terminate.
C)a condition subsequent clause.
D)a frustration of contract clause.
E)an example of laches.

Accepted Answer

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

Quiz 13: Performance of Contractual Obligations

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

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

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

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?

How can contracts be discharged?

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

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

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

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?