In most bilateral contracts,

exact performance is required to avoid any liability for breach.

one party must complete its obligations prior to the other side performing its obligations.

substantial performance has no effect on full performance.

obligations are performed simultaneously.

it is not important to determine when a party has properly performed its obligations under the contract.

If a party is ready, willing, and able to perform under a contract and such performance is refused or prevented by the other party, which of the following is true?

The party attempting performance must persist when performance is prevented or refused.

In all instances, the performing party is taken to have completed its obligations under the contract.

In no instances, other than where a debt is owed, is the performing party taken to have completed its obligation under the contract.

In all instances, other than where a debt is owed by the performing party, the performing party is taken to have completed its obligations under the contract.

In no instances is the performing party taken to have completed its obligation under the contract.

Ann hires Bob to mow her lawn on Saturday for $5. When Bob arrives, Ann tells him she will not pay him. What can Bob do?

Only insist on payment and mow the lawn

Either refuse to mow the lawn or insist on payment and mow the lawn

Only refuse to mow the lawn

Nothing since he has not yet started to mow the lawn

Mow the lawn and take $5 from Ann's wallet

What is the appropriate action for the victim to take if the other party fails to perform his obligations under the contract?

Only sue for damages

Sue for damages and request the other party be enjoined from doing further business

Refuse to perform and sue for damages

Only refuse to perform her obligations

Only sue for specific performance

Thompson sells his home to Smith. The agreement is structured such that Smith will assume Thompson's mortgage. In this situation, which of the following is not a criterion that must be met to determine that a novation has occurred, in the absence of legislation to the contrary?

The mortgagee must accept the contract between Smith and the mortgagee in full satisfaction and substitution for the contract between the mortgagee and Thompson.

The mortgagee must accept Smith as the guarantor.

Smith must assume complete liability for Thompson's mortgage.

There must be complete agreement among Smith, Thompson, and the mortgagee before the new contract becomes binding.

The mortgagee must accept Smith as the debtor.

Marlin is a well-known Vancouver radio personality. He has negotiated a contract to begin performing for a Toronto radio station, CHOG. The final agreement includes a provision that Marlin will begin the job only if his wife has secured suitable employment in Toronto. Marlin's wife is a professor of oceanography and no university in the Toronto area offers courses in her area of expertise. Marlin refuses to fly to Toronto to begin his show for CHOG. On what grounds is he entitled to take this legal position?

He is discharged from the contract because of a condition subsequent.

He is discharged from the contract because a condition precedent has not been satisfied.

He is simply in breach of contract.

The contract is not formed because his wife could not secure employment.

He is discharged from the contract because it has been frustrated.

A common law rule that causes a particular party, the party who was providing the service before the frustrating event occurred, to bear the loss following a frustrating event is known as which of the following?

He who laughs last ...

It is not my act

Let the loss lie where it falls

A shield but not a sword

A stitch in time

What of the following situations does not involve frustration of the contract?

The contract is for a lawyer to provide legal counsel. The lawyer falls into a coma.

One party contracts to provide tables to the other at a set price but the price of raw materials increases.

The contract is to paint a house. Just before beginning to paint, the house burns down.

The contract is for the sale of oranges. The government outlaws the possession of oranges.

The contract is to rent an apartment to view the scheduled victory parade. The parade is cancelled.

A contract can include an amount agreed on to be paid in damages by a party if it should commit a breach. This type of clause is commonly referred to as

an acceleration clause.

an accounting clause.

a liquidated damages clause.

a specific performance clause.

an immediate clause.

A contract can include an amount agreed on to be paid in damages by a party if it should commit a breach. This type of clause is commonly referred to as

an acceleration clause.

an accounting clause.

a liquidated damages clause.

a specific performance clause.

an immediate possession clause.

Cora enters into a contract to sell shoes to David to be delivered on January 1st. David will then modify the shoes and resell them. She knows that David needs these shoes on time because he can only sell his product at a premium price for the first two months of the year; then his profits decrease greatly. Cora does not deliver the shoes until February 15th. David sues claiming losses based on the high profit he would have received in the first two months of the year. Cora claims the loss should be limited to the normal profit. Who is correct and why?

Cora because damages are based on punishing the wrongdoer and the normal profit calculation would do that

David because the victim is entitled to full compensation for any loss suffered as a result of the breach

Neither because the court will assess damages based on what it feels is fair to both parties

David because the high profits were foreseeable

Cora because loss is always based on normal business profits

What of the following is not a remedy the courts may impose for breach of contract?

Laches

Injunction

Specific performance

Damages

Rescission

The Marathon Mining Corp. (MMC) believes that a vein of gold runs under its property and continues under three neighbouring properties. MMC enters into agreements to purchase the three properties. When Raymond, the owner of property #2 (which lies between properties #1 and #3), realizes why MMC wants to buy the properties, he decides that the selling price for his property is too low and advises MMC that he will not complete the deal. What should MMC do?

Renegotiate the deals with all three property owners

Sue Raymond for specific performance

Renegotiate the deal with Raymond

Only sue Raymond in breach of contract for damages

Sue Raymond for rescission

The obligations under a contract can be discharged when both parties satisfactorily perform the terms of the contract. Which of the following will not constitute proper performance?

When failure to perform involves a warranty

Substantial performance

When a condition is breached in some minor, inconsequential way

Exact performance

When failure to perform involves a condition

What of the following is not considered adequate tender of performance?

The contract is partially performed but not at the specified time or place.

An attempt is made to perform the specified service.

The debtor pays in legal tender.

An attempt is made to perform the specified service at the specified time and place.

The debtor attempts to pay in legal tender, but the creditor refuses.

Accord and satisfaction occurs when

the parties agree to end the contract based on some other satisfaction.

the parties seek the court's help in terminating their relationship.

one party assigns her rights under the contract to another.

one party substitutes a third party into his place in the contract.

one party states that neither has to fulfill the obligations.

Jones entered into a contract with Chan for the purchase of Chan's business. As Jones intended to expand the business and understood that such expansion was contingent on municipal approval to rezone the premises, the contract specified that if the rezoning was not approved, the contract would be terminated and the parties would be placed in their pre-contractual positions. Which of the following is true?

The relevant condition to the contract is commonly referred to as a frustration clause.

Frustration does not apply, as the outside event was anticipated by the parties.

The doctrine of frustration does apply, as the outside event was not reasonably anticipated by the parties.

The relevant clause is commonly referred to as a force majeure clause.

The relevant clause is commonly referred to as a novation clause.

What of the following is not a remedy that an injured party may have available, depending on the type of breach and the subject matter of the contract?

Mitigation

Quantum meruit

Injunction

Rescission

Damages

What of the following remedies are often provided for in the body of a contract?

Liquidated damages and deposit forefeiture

Accounting and quantum meruit

Specific performance and injunctions

Rescission and down payments

Deposits and specific performance

Gwen breaches a contract with Harold. Harold sues for the breach. As part of the award, the Court requires Gwen to complete her contractual obligation to build a building. Gwen refuses to do so. What is the legal result?

Nothing. No one can enforce the order to take a specific action.

The court will find Gwen in contempt of court.

Harold can publically declare that Gwen is a cheat.

Harold can sue again for breach of contract.

The court will order punitive damages.

What of the following statements is false about performance?

A salesman can be required to deliver the car before the buyer is obligated to pay.

A customer can be required to pay at the time he takes his goods.

It is often important to determine if performance has occurred to determine if the other party is obligated.

A person never has to pay for an ordered product if it does not exactly match the description.

An employer is not obligated to pay an hourly employee if she does not work her shift.

Bob hires Sue to paint his portrait. Sue paints a landscape instead, hoping to sell it to a third party for more money after Bob declares the contract breached. Bob wants to keep the landscape and offers the agreed to payment. Can Sue refuse to give Bob the painting because of her breach without violating the contract?

Yes. The painting belongs to Sue because her breach terminated the contract.

Yes. Since Sue is the artist, the painting belongs to her until she accepts payment for it.

No. The victim has the right to terminate a contract due to a breach but does not have to.

No. There is no breach of contract because the type of painting is not important.

No. The contract was binding on both parties once Sue started painting.

What is an exemption clause?

A valid contract clause that limits the property to be sold

A valid contract clause that details what actions constitute a fundamental breach

A valid contract clause that states the liability of a party is significantly limited or eliminated should that party breach the contract

An invalid contract clause that exempts the parties from criminal prosecution for actions related to the contract

An invalid contract clause that states the contract is enforceable if one party breaches a condition

What of the following situations is not repudiation?

A party sells the subject of the contract to someone else.

A party sends a letter to the other saying he plans to sell the subject of the contract to a competitor.

A party is two days late with the second of ten deliveries.

A party fails to make the first five (of seven) deliveries.

A party speaks to the other and states she will not be able to make delivery of the contracted product.

Edna agrees to mow Danny's lawn every week for five dollars per week. After three weeks, Edna wants to stop mowing and Danny has found another lawn mower for less money. They agree that Edna will no longer mow the lawn and Danny will not owe her any further payment. Can the parties end the contract?

No. Contracts cannot be terminated once performance has begun.

Maybe. The contract can be terminated if a court decides the termination is fair to both parties.

Yes. Contracts can always be terminated by agreement of the parties.

No. There is no consideration on Danny's part to terminate the contract so the agreement is invalid.

Yes. Contracts can be terminated by agreement as long as there is consensus and fresh consideration.

A contract states that if Party A sells his home and leaves the jurisdiction before completing the contract then neither party is required to complete performance. This is a(n)

condition precedent.

exemption clause.

anticipatory breach.

condition subsequent.

force majeure clause.

In what of the following situations is the contract not discharged by frustration?

A developer buys a property from the town for the purpose of making affordable tiny apartments in an area zoned for tiny dwellings. The zoning board declares no tiny apartments can be built.

Two parties contract for the sale of the goods inside a ship. Before they sign, the contract the ship sank.

A painter is hired to paint a mural on a school. A tornado completely destroys the school.

An employee is injured and cannot perform the job he was hired to do.

A contractor is hired to roof a home. The home burns down before she can start.

Nancy contracts to purchase a large amount of product from Ivan and paid $500 as a down payment. Ivan starts preparing the order and incurs costs but has not yet delivered any of the product. The contract is then frustrated. Under current legislation, what happens?

Ivan must deliver as promised.

Nancy can get the product from another source and sue Ivan for the difference in the cost and to get her deposit back.

Nancy always gets her money back.

Ivan must return the part of the down payment he did not use preparing to deliver the product.

Ivan always keeps the down payment to defray his costs.

How have statutes modified the type of situations the frustration principle applies to?

Statutes prohibit the principle from applying to the sale of goods where the goods are destroyed at the seller's place of business while the common law allows it.

The common law prohibits the principle from applying to renting while statutes allow it.

Statutes prohibit the principle from applying to renting while the common law allows it.

The common law prohibits the principle from applying to the sale of land while statutes allow it.

The common law prohibits the principle from applying to employment while the statutes allow it.

The purpose of damages in a breach of contract action is

to pay for any costs the victim expended for the contract.

to place the victim, through the payment of money, in the same position he would have been if the contract had been completed.

to only punish the breaching party.

to place the victim in the place she was before the contract occurred.

to make the victim whole.

What of the following statements about mitigation is false?

The victim is not required to risk her life to limit the damage cause by the breach.

A court can reduce the damage award if the victim made no attempt to lessen the harm caused by the breach.

The victim is required to spend as much as necessary to mitigate the damages.

The victim cannot allow his harm to become greater in hopes of a large damage award.

The victim of unlawful employment termination must try to find another job.

Bill hires Ted to help develop a secret recipe. The contract has a non-compete clause prohibiting Ted from working for a competitor for three years after leaving. After six months Ted quits and is hired at a direct competitor. Bill sues for breach of contract and requests the court grant an injunction preventing Ted from working anywhere for the next three years. Will the court grant the injunction, assuming Bill proves his case?

Yes. The court will grant the injunction to punish Ted for his wrongdoing.

No. The court will refuse because the injunction would prevent Ted from being able to have any job.

Maybe. The court will grant the injunction if Ted's actions are shown to be malicious.

No. The court will refuse because damages are more appropriate.

Yes. The court will grant the injunction because it prevents injury to Bill.

What of the following is not a reason for the court to refuse an equitable remedy?

The party requesting the remedy also breached the contract.

The breaching party did not intend harm.

The victim waited two years to request a remedy without a valid reason.

The remedy requested would bankrupt an innocent third party.

The victim also breached the contract. chapter 9 end here