Jason runs an oilfield service business and is looking to lease some light towers and generators in Grande Prairie which can operate in harsh winter conditions. He requires the equipment to allow him to work at a site throughout the night. Jason has been negotiating lease terms with a local rental supply company, owned by Todd. The company's website advertises that the specific equipment he is interested in renting can operate in "very cold conditions for sustained periods of time". The total price for all of the equipment is $600 per day, a price which Jason is happy to pay if it allows his company to work around the clock. They agree on a 3 month lease term. After Jason inspected the equipment Todd presented him with his company's standard form of rental agreement. Jason reviewed the contract and both parties signed it.

Cameron's Crazy Commodities Ltd. (\"CCC Ltd.\") has secured the opportunity to sell a large quantity of dairy cows to a buyer in Grimshaw. CCC Ltd. enters into a contract with Drew's Dank Deliveries lnc. (\"DDD lnc.\") to purchase some of the cattle it needs. Among other things, the contract states: "WHEREAS Cameron's Crazy Commodities Ltd. intends to resell the cattle to a third party on July 15, 2020. Drew's Dank Deliveries Inc. shall source and deliver 200 cattle to a storage centre specified in writing by Cameron's Crazy Commodities Ltd.\" ByJune 30, 2020, DDD Inc. has not delivered any cattle and Cameron asks when the delivery will be made. Drew replies that the delivery will be made July 20, 2020. Delivery on July 20, 2020 will leave CCC Ltd. unable to resell the cattle to its buyer. Cameron reviews the contract and realizes that CCC Ltd. made an oversight: it did not specify a delivery date for the cattle. To convince Drew to speed up the delivery, Cameron argues that there is an implied term in the contract which requires that the delivery occur before July 15, 2020 so that CCC Ltd. will have the opportunity to resell the cattle. Identify reasons for when a Court might imply a term in a contract and describe whether each reason might support Cameron's argument in this case. (3 points) Question 40 (3 points) DDD Inc. delivers 200 cattle on July 10, 2020. Cameron inspects the cattle and realizes that they are of a breed used to produce beef and are not suitable for dairy production. Cameron immediately contacts Drew and explains to him that these cattle are not suitable and that CCC Ltd. will not pay for the cattle. It quickly becomes apparent that CCC Ltd. and DDD Inc. have a dispute about the meaning of the word \"cattle\". \"Cattle\" is not expressly defined in the contract. On top of this, Drew and Cameron do not get along well with one another. What alternatives to litigation could you recommend for these parties? Describe some pros and cons as compared with litigation. (3 points) Question 41 (2 points) Unfortunately, the parties are unable to resolve the dispute. CCC Ltd. commences a lawsuit in the Alberta Court of Queen's Bench against DDD Inc. claiming that DDD Inc. failed to perform the contract. After 2 years, the matter goes to trial and the court finds in favour of DDD Inc. The judge reasoned that the term \"cattle" was ambiguous. The plain meaning of \"cattle\" includes both dairy and beef cows. DDD Inc. did not know that CCC Ltd. needed dairy cattle when it accepted the contract. Therefore, the plain meaning is the appropriate interpretation of the contract and DDD Inc. performed its contractual obligations. CCC Ltd. is devastated and wants to appeal the decision. What successive levels of Court might hear the initial appeal and any subsequent appeals? (2 points) Question 42 (2 points) Though DDD Inc. won at trial, it spent a significant amount of resources throughout the action. Drew wants to avoid lawsuits in the future. He undertakes a legal risk assessment of the company. He identifies that late delivery poses a legal risk. What factors should Drew consider to evaluate this risk? (2 points)