1. AJ contractually agreed to repair Shirley's car within one week. Three days later, however, he informed her that he would not be able to complete the job because he had lost all of his tools in a poker game. The facts most clearly demonstrate the concept of

Select one:

a. novation.

b. bankruptcy.

c. self-induced impossibility

d. breach of warranty.

2. As a general rule, punitive damages will not be awarded for a breach of contract unless

Select one:

a. as a result of that breach, the defendant obtained a benefit that exceeded the value of the plaintiff's loss.

b. the defendant committed an independently actionable wrong.

c. monetary damages would not adequately compensate the plaintiff.

3.Which of the following statements is TRUE?

Select one:

a. The breach of an intermediate term sometimes allows the innocent party to discharge the contract.

b. Because electronic records are easy to create and store, the general limitation period for breach of contract recently was increased to ten years.

c. The doctrine of frustration applies in favour of the innocent party if the other party to a contract intentionally makes it impossible to perform the contract.

d. Bankruptcy always relieves a contractual party from the need to satisfy any obligation that arose under a contract

4.An express term

Select one:

a. is only enforceable if one of the parties agrees to it in writing.

b. is a term made by the court ascertaining the industry custom when interpreting the contract.

c. is a statement made by one party to induce the other party to enter into an agreement.

d. is a statement made by one of the parties to the other party of a contract that a reasonable person would believe was intended to create an enforceable obligation.

5.a court will award punitive damages only if the plaintiff is not entitled to expectation damages

a. true

b. false

6.which of the following have limited capacity to contract for the necessities of life.

a. minor

b. corporation and alcoholic

c. aboriginals and the elderly

7.Business people often sign written agreements on the oral assurance that some of the terms of the written agreement will not be enforced. To sign under written agreements in these circumstances is imprudent because of

Select one:

a. the contra proferentem rule.

b. the absurdity rule.

c. the parol evidence rule.

d. the golden rule.

8.Which of the following statements is TRUE?

Select one:

a. The breach of an intermediate term sometimes allows the innocent party to discharge the contract.

b. Because electronic records are easy to create and store, the general limitation period for breach of contract recently was increased to ten years.

c. The doctrine of frustration applies in favour of the innocent party if the other party to a contract intentionally makes it impossible to perform the contract.

d. Bankruptcy always relieves a contractual party from the need to satisfy any obligation that arose under a contract.

9.Unconscionable transactions can be characterized as one-sided transactions obtained by unfair use of power.

Select one:

True

False