Background: Dan works for PumpIt an oil and gas company that is primarily concerned with buildingpipelines, in sales. One day, he secures a major contract with TransOil, a company that owns pipelines,worth$160Millionto upgradeapipelinefromaprocessing facilityin NorthernAlbertatoarefinery inSaskatchewan.

1. Danemailshisboss,Lara,totellherthegoodnews.Shecomesbyhisofficelater thatdayandpromiseshima$15,000bonus for, "doing suchagoodjob."

Question: Is Lara legally bound by her promise to give Dan the bonus? Explain why or why not withreference to theprinciplesof contractlaw. (3 marks)

1. Later that day, Dan gets a phone call from his wife, Wanda. Explains that their fourteen year olddaughter, Jenny, had bought herself a new computer for $2,000. Jenny is now experiencing a majorcaseof"buyer'sremorse"afterhavingmadesuchahugepurchase.Wandaexplainsthattherewasa"noreturns" policy on the receipt and the store is refusing to let Jenny return the computer and get hermoney back.

Question: Is Jenny bound by the contract with the store? Explain why or why not with reference to theprinciplesof contractlaw. (3marks)

1. A few months later, things are not goingwell for PumpIt. The upgrade contract Dan landed has amajor problem. When Dan had negotiated the contract, the representative from TransOil had said thatthe land the pipeline had been built on was all flat, high ground away from any water sources.However,whenPumpItcrewsbeganworkingontheproject,theyfoundthatlargepartsofthepipelinewere, in fact, running through bogs and marshes. This terrain is much more difficult to work in, asequipmentand trucks often get stuck in the mud. As a result, it's taking PumpIt crews much longer toperform their work than had the pipeline been on the flat, high ground that TransOil had claimed. Infact, PumpIt now stands to incur a loss due to all the added expense of having to take more time andwork in much more difficult conditions. Unknown to Dan, the TransOil representative wasn't payingattention to the design document and that's why he didn't tell Dan that the pipeline ran through bogs.Question: Is PumpIt bound by the contract with TransOil? Explain why or why not with reference tothe principles of contractlaw.(6 marks)

1. To make matters worse, Lara has still not paid Dan the $15,000 bonus she promised him and nowsays she's not going to give it to him due to all the trouble the TransOil contract has caused. She's soangry at him that she threatens to fire him if he does not sign a contract whereby Dan agrees to handover all the patent rights to an invention he had developed and patented before ever working PumpIt.Danagrees.

Question: Is Dan bound by his promise to hand over the patent rights? Explain why or why not withreference to theprinciplesof contractlaw. (4 marks)

1. That evening, Dan goes out for a few drinks at a pub to try and relax. He ends up drinking heavilythat night and stumbles home, reeking of alcohol. When he wakes up the next day, he finds papersstuffed into his jacket pocket. When he read them, he's horrified to find that, while stumbling homedrunk the previous night, he had gone into a car dealership and purchased a brand new top-of-the-lineBMWwith avery expensivecustompaintjob.

Question: Is Dan bound by this contract for the BMW? Explain why or why not with reference to theprinciplesof contractlaw.(4 marks)

Instructions: Identify and assess whether the promises and contracts in the above scenario are bindingand any relevant remedies. Explain why each promise or contract is or is not binding with reference tothe legalprinciples of contract law.

SampleQuestion and Answer:If a contract was entered into with an illiterate person (4 marks), youranswerwouldbe:Thecontractisnotbinding(1mark)because ofunconscionably (1mark)sincePartyXwasilliterate(1mark)andthereforeparticularlyvulnerable to exploitation(1 mark)