1. Ms. Weir was engaged by Canada Post to deliver advertising flyers for a five-year term. She was entitled to payment on a per-piece basis. The contract provided that Canada Post could terminate the agreement on 60 days notice if it changed its ad flyer distribution system and alternatively, Canada Post may in its sole discretion terminate this agreement immediately on giving written notice to the Contractor. Payment per piece became costly for Canada Post, and two years later it instituted a new payment system based on packages (containing several pieces). Is Canada Post entitled to terminate the contract with Ms. Weir? What evidence is the relevant? Is it a contract at all when one party has so much discretion?

2. Courts are increasingly willing to imply into contracts a term requiring the parties to act in good faith. Is this a welcome development? Why or why not?

3. Louise purchased a shrink-wrapped piece of software from a local software developer. She used the software properly but, much to her dismay, the product contained a virus that destroyed the hard drive of her computer. When Louise looked in the software packaging, she found a card that contained a number of terms of conditions, including a limitation of liability clause. Is this term a part of the contract or can Louise argue that she is not bound by it? Explain.