Question 1

Sangster and Williams enter into a verbal contract with each other.They later decide to put it in writing.This is a substituted agreement.

Accepted Answer

The answer of Sangster and Williams enter into a verbal...

Question 2

Ms.Sherbourne bought a candy bar costing 80 cents.She paid for it by presenting the storekeeper with a $5 bill.While this is not a legal tender,it is so customary to give change that the storekeeper would have to warn customers if he was only prepared to accept exact tender of the price of the goods.

Accepted Answer

The statement is true. It is customary for storekeepers to give change to customers who pay with a larger denomination than the price of the goods. While the $5 bill is not exactly the amount of the candy bar, the storekeeper would still give change back. However, if the storekeeper was only prepared to accept exact tender, they would need to warn customers.

Question 3

Julian decides that he would like the house being built for him,under contract with Porter Developers,to have a blue tile roof instead of a red tile roof.The two kinds of tile are equally available and are the same price,and no roofing of the house has yet been done.Porter alleges that this is a material alteration of the terms of the contract,since the roof is one-tenth of the value of the house,and that,therefore,it cannot be done without their agreement to the change,which they will only give for a further payment of $5,000.They are right.

Accepted Answer

Changing the color of the roof tiles, when both options are equally available and priced, and no work has been done yet, typically would not be considered a material alteration of the contract terms. A material alteration fundamentally changes the obligations, rights, or remedies under a contract. A change in color, without additional cost or impact on the availability, generally does not meet this criterion.

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.If Kirk deliberately destroyed his truck,Yemmi can insist that he perform the agreement or compensate Yemmi for any loss that might result from Kirk's nonperformance.

Accepted Answer

If Kirk deliberately destroyed his truck, it would be considered a willful breach of contract, allowing Yemmi to seek specific performance or damages for the losses incurred due to Kirk's non-performance.

Question 5

Cecilia agreed to buy an antique Japanese sword from Andrew.After the contract is formed but before Andrew delivers the sword or Cecilia pays any money to him,the government passes a law that makes it a crime to buy a sword other than a fencing foil.Since the contract was made before the law was passed,it is not frustrated.

Accepted Answer

The contract is frustrated because the new law makes the performance of the contract illegal, regardless of when the contract was formed.

Question 6

The vast majority of contracts are discharged by operation of law.

Accepted Answer

The vast majority of contracts are discharged by performance, meaning that the contracts are fulfilled as agreed upon by the parties involved. Discharge by operation of law is less common and occurs in specific situations such as bankruptcy, the death of a party in certain contracts, or the occurrence of an impossibility to perform.

Question 7

The case of Turney et al.v.Zhilka accurately describes the state of the law in Canada with respect to the effect of conditions precedent.

Accepted Answer

The case of Turney et al. v. Zhilka accurately describes the state of the law in Canada with respect to the effect of conditions precedent.

Question 8

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.If Kirk owned a fleet of trucks,and Kirk had a number of spare trucks,the doctrine of frustration would not apply to the case,and Kirk would be obliged to perform the contract.

Accepted Answer

The doctrine of frustration applies when an unforeseen event renders contractual obligations impossible to perform. Since Kirk has spare trucks, he can still fulfill the contract, thus the doctrine of frustration does not apply.

Question 9

Joe sold a barn full of hay to Sheila but,before Sheila could transfer it to her own barn,a hurricane blew the roof off Joe's barn,and that part of the hay that did not blow away was ruined by the torrential rains.The contract is frustrated.

Accepted Answer

Frustration of contract occurs when an unforeseen event occurs making it impossible to fulfill the contract. In this scenario, the hurricane that caused damage and ruined the hay makes it impossible for Joe to fulfill the contract, thus frustrating it.

Question 10

Lucas offered to purchase Baker's snowmobile if he could arrange a loan with the bank for the funds.Lucas and Baker signed a written purchase agreement which did not mention the fact that Lucas did not have the necessary funds in his possession.If Baker claimed against Lucas for breach of the contract,Lucas could raise the agreement concerning the need for a bank loan as a collateral agreement,allowing him to avoid the contract.

Accepted Answer

The answer of Lucas offered to purchase Baker's snowmobile if...

Question 11

Damian and Raja agree in writing that Raja will buy Damian's cottage.If Raja changes her mind and refuses to buy the cottage,Damian can get specific performance provided he can prove that he tried to transfer the title deed to the property on the closing date and Raja would not accept it.

Accepted Answer

The clause about specific performance suggests that the parties have agreed to a contract and have included this provision in case one party breaches the contract. If Raja refuses to buy the cottage after agreeing in writing, Damian has the right to seek specific performance, which would require Raja to complete the purchase as originally agreed. However, Damian must prove that he tried to transfer the title on the closing date but that Raja refused to accept it.

Question 12

Damian and Raja agree in writing that Raja will buy Damian's cottage.On the date set for closing the sale,it is up to Raja to come to Damian to make payment of the purchase price,unless the contract says otherwise.

Accepted Answer

The statement is true, as it is common for the buyer to make payment and complete the transaction on the closing date, and it is specified that Raja is responsible for coming to Damian to make payment unless the contract specifies otherwise.

Question 13

Lucas offered to purchase Baker's snowmobile if he could arrange a loan with the bank for the funds.Lucas and Baker signed a written purchase agreement which did not mention the fact that Lucas did not have the necessary funds in his possession.If the bank refused to lend Lucas the money,the contract would be enforceable against Lucas.

Accepted Answer

The contract between Lucas and Baker is contingent upon Lucas obtaining financing from the bank. If Lucas cannot secure the loan, the condition precedent (obtaining the loan) is not met, and therefore, the contract cannot be enforced against him for failing to purchase the snowmobile.

Question 14

Gavin is in the business of local transport of goods,as well as running a rural bus service.He contracts for a delivery van from his local truck dealer,but before the dealer places the order with the manufacturer,Gavin amends the order to request the minibus model of the delivery van.Gavin and the dealer have created a new contract that replaces the prior one.

Accepted Answer

Gavin and the dealer have agreed to a new contract by amending the original order, which means the prior contract has been replaced.

Question 15

Imperfect tender,also referred to as imperfect performance,does not represent a breach of contract.

Accepted Answer

Imperfect tender or imperfect performance refers to a situation where the goods or services provided do not fully meet the specifications or requirements outlined in a contract, which can be considered a breach of contract.

Question 16

Lucas offered to purchase Baker's snowmobile if he could arrange a loan with the bank for the funds.Lucas and Baker signed a written purchase agreement which did not mention the fact that Lucas did not have the necessary funds in his possession.The proviso "if he could arrange a loan with the bank for the funds" would be a condition precedent.

Accepted Answer

A condition precedent is a condition that must be fulfilled before a contract can be legally binding. In this case, Lucas arranging a loan with the bank is a condition that must be fulfilled before the purchase agreement can be binding, making it a condition precedent.

Question 17

A judgment by Mr.Justice Exx for the plaintiff Wy,in his suit against Zedd for breach of a condition of a contract,has the effect of discharging the contract,so that Wy has no further obligations under it,and substitutes the terms of the judgment for the terms of the contract,which Zedd must then perform.

Accepted Answer

A judgment for breach of contract typically results in the discharge of the contract and the substitution of the terms of the judgment for the terms of the contract. The defendant is then required to perform those terms as outlined in the judgment.

Question 18

The effect of a condition precedent is that the contract does not come into effect unless the condition is satisfied.

Accepted Answer

A condition precedent is a requirement that must be met before the contract is binding. If the condition is not satisfied, the contract does not come into effect.

Question 19

Bronson signs up to join the army because the advertisements make it look like summer camp.Later,he changes his mind and shoots himself in the foot so he won't have to go.This does not frustrate the contract,though the contract may be avoidable on other grounds.

Accepted Answer

Shooting oneself in the foot to avoid military service is considered a form of self-harm and is punishable under military law. However, it does not frustrate the contract as the individual still signed up for the service and is still bound by the terms of the contract. The contract may be avoidable on other grounds, such as mental health concerns or fraudulent enlistment.

Question 20

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.Kirk need not perform the contract,as the contract was frustrated by the destruction of the truck.

Accepted Answer

Frustration occurs when an unforeseen event renders it impossible to perform the contract. In this case, the destruction of Kirk's truck makes it impossible for him to perform the contract, and therefore the contract is frustrated. Kirk is released from his obligation to perform under the contract.

Quiz 13: Performance of Contractual Obligations