John Stevenson, a plumber, had a contract to repair a slow leak in a toilet in Dr. Ibsen's medical clinic. Because it had to be done when no patients were there, John Stevenson agreed to come on a Saturday. However, when he got there, he found a notice on the door saying "Got a chance for a free trip to Hawaii. Come next Saturday at the same time. Thanks. Dr. Ibsen." John Stevenson did not turn up the next Saturday and, when Dr. Ibsen called to find out why, John Stevenson said he had promised to take his wife shopping that day, and he doubted if he would be able to find the time in the future.

Question 1 options:

Dr. Ibsen breached the contract on the first Saturday and John Stevenson breached the contract on the second Saturday.

Dr. Ibsen breached the contract on the first Saturday.

John Stevenson breached the contract on the second Saturday.

Neither man has breached the contract; it is simply suspended.

The contract was not breached since it was frustrated on the first Saturday because Dr. Ibsen could not be there.

For contracts concerning the purchase of land, once payment in full in accordance with the terms of the contract has been offered by the purchaser, if not provided in turn by the vendor with a deed to the property, the purchaser may

Question 2 options:

bring an action for termination.

bring an action for delivery of legal tender.

bring an action for specific performance.

bring an action for tender.

bring an action on the condition subsequent.

Delores is an opera singer who is scheduled to perform in Toronto on October 17th. She gets laryngitis and is unable to sing. The contract does not include any provisions regarding Delores' health. Is she obliged to perform?

Question 3 options:

Delores is required to perform as there is an implied term of continued good health

Delores is required to perform as there is no provision terminating the agreement in the event of illness.

.Delores is not required to perform. The contract is frustrated as there is an implied term of continued good health.

Delores is not required to perform because of human rights legislation

Delores is required to perform, but because of her laryngitis she is allowed to lip synch.

Thomas' prom is tonight at 8 pm in downtown Toronto. He hires First Rate Limos to pick him up in a black, super-stretch, Navigator Limo and take him to the prom. They are to pick Thomas up at 7pm tonight. The fee for the service is $500. First Rate Limos is running late. They get to Thomas' house at 7:30 and don't get him to the prom until 8:25. Thomas is furious and refuses to pay. Which of the following is correct?

Question 5 options:

a. First Rate Limos breached the contract and is not entitled to any payment

b. Thomas need not pay and he is entitled to another free Limo ride

c. Thomas is required to pay the full amount as he was still picked up and delivered to the prom

d. Thomas is required to pay, but would be entitled to a deduction in the fee

e. Both a and b

f. none of the above

Thomas' prom is tonight at 8 pm in downtown Toronto. He hires First Rate Limos to pick him up in a black, super-stretch, Navigator Limo and take him to the prom. They are to pick Thomas up at 7pm tonight. The fee for the service is $500. First Rate Limos is on time. However, they deliver a charcoal grey super stretch Navigator Limo. Thomas is furious and refuses to pay. Which of the following is correct?

Question 7 options:

First Rate Limos breached the contract and is not entitled to any payment

Thomas need not pay and he is entitled to another free Limo ride

Thomas is required to pay the full amount as he was still picked up and delivered to the prom

Thomas is required to pay, but would be entitled to a deduction in the fee

First Rate Limos Breached a Condition in the contract and does not need to be paid.

none of the above

Triple A Batteries sells batteries in Bulk. Their customers typically buy thousands of batteries in a single order. The battery sizes vary, but they are shipped together in large crates and are usually delivered to warehouses for storage. Triple A knows that sometimes these batteries can be left in storage for months (or even years) before being used. As such, they are concerned that their customers will be upset if some of the batteries no longer work. For this reason, they include in their contracts the following language: "Triple A Batteries makes every attempt to deliver quality products and stands behind its batteries. However, given the size of the orders the buyer acknowledges that some of the batteries delivered may not be in working order and agrees that Triple A Batteries shall not be held liable in the event that some of the batteries delivered do not function as requested." Triple A delivers a shipment of 10,000 batteries to Golden Age Toys. In that shipment, 13 batteries were found to be defective. Golden Age Toys is furious. Which of the following is correct.

Question 8 options:

a. The contract has been breached and Golden Age Toys need not pay for the order

b. A minor breach of contract occurred so Golden Age Toys must pay for the contract but may request a deduction in the fee

c. The contract contained a Formulatory term which exempted liability for the seller. Thus, Golden Age Toys must pay the full amount

d. The clause in the contract protected Triple A from liability and they are not liable for the defective batteries.

e. Both C & D

f. Both A & C

Lisa has a written contract to sell Sarah a Laptop. They agree that the Black Turbo 6200 Laptop will be sold for $2300 and that the transfer will occur on August 1st at 8pm and be delivered to Sarah's home at that time. The payment would be made at that time. At 8pm on August 1st, Lisa brings the laptop to Sarah's home and asks for payment. Sarah offers her a cheque for $2300. Lisa does not want to accept a cheque and refuses to hand over the laptop. Which of the following is correct?

Question 10 options:

a. Since Sarah offered the payment at the correct time and place, and in the correct amount, Lisa is breaching the contract.

b. Lisa has the right to refuse a cheque, but if Sarah were to provide more money it would have to be accepted.

c.As the contract did not specify the form of payment required, Sarah has the right to demand cash and can refuse other types of payment

d. Both A & C

e. None of the above

Deirdre bought a secondhand car from Honest Harry's Autos after being assured by Harry, in response to her questions, that the car had been driven only in good weather by the little old lady from whom he had purchased it. He claimed that was why its mileage was so low, and that it had never, (according to the little old lady), had so much as a scratch. "That's excellent," said Deirdre. "If it had been otherwise, I wouldn't have bought it."

Deirdre soon began having trouble with the car pulling to one side when she applied the brakes, so she took it into the garage for a wheel alignment. The mechanic said "Why on earth would you buy this old heap? Granny Moses, that wild old lady, drove this thing like a madwoman, and it's never been the same since her last crash."

Question 11 options:

Honest Harry's committed Fraudulent misrepresentation. Rescission of contract could be expected.

Honest Harry's committed Fraudulent misrepresentation. Rescission of contract and damages could be expected

Buyer beware is the rule in this situation. No remedy could be expected.

As this was a question of opinion, it is not misrepresentation. No remedy is required.

None of the above.

Rick is 28 years old and a new homeowner. He is looking to sell his car and tells his friends and neighbours that he is looking to sell the vehicle. His neighbor, Emmett approaches him with an offer to buy his car. He says that he will pay twice the value of the vehicle and presents Rick with a contract to sign. Emmett says, you can trust me that all of the terms we discussed are in the agreement. Rick agrees and signs the contract. However, the contract did not deal with the sale of the car. It was a contract to sell Rick's house at a very low price.

Question 13 options:

This is Fraudulent Misrepresentation. It will not be binding.

This is an example of the need to read every contract. Rick signed the agreement and is bound to its terms.

Undue Influence applies. It will not be binding.

Rita hires Pro Flooring to install grey granite floors throughout her home. The home is 21 rooms and 6000 square feet. They fee will $12000. The contract is scheduled to last until September 1st. At first, Pro Flooring seems to be a doing a very good job and Rita is happy with the progress. However, after completing most of the home, they delay the completion of the final room. After not showing up for over 2 weeks. Pro Flooring tells Rita that they will not be able to complete the job and that she should look elsewhere for someone to complete the work. That week, they send her a bill for $12000. Rita is very angry and refuses to pay, Pro Flooring sues her for payment.

Question 14 options:

No payment would be required due to Quantum Meruit.

Rita is correct. The contract was breached. No payment is required

The contract was substantially performed and thus Quantum Meruit would be required.

Quantum Meruit is required as no purchase price was discussed.

Pro Flooring is entitled to full payment as they did most of the job and expended money and energy in the work.

. Hyper est Dictum states that you must read the terms of the agreement and if you do not, you will always be bound to its terms.

Non East Factum states that Rick will likely not be held to the contract.

George is selling a model car online. He posts a picture of the car and is asking for $500.00. Larry sees the ad and is looking for a car that can drive him to and from work each day. The picture online does not show that the car is only a model. Larry thinks that he is getting a really good deal and immediately places an offer. George accepts. When he goes to deliver the car, Larry is shocked that it is not a real car. He immediately refuses to accept the item. Which of the following is correct?

Question 15 options:

a. There was Fraudulent misrepresentation and George will be liable for damages and rescission of contract.

b. This was a unilateral mistake. The contract does not reflect a meeting of the minds. There is no contract.

c. As the Mistake did not pertain to an essential element of the contract, both parties will be bound to it.

d. Mistake only applies to the identity of the parties and not to the subject matter. The contract will be binding.

e. All of the above

f. None of the above.

Samantha is Vanessa's Doctor. Vanessa is being treated for a serious medical condition and requires constant monitoring and administration of medication. Vanessa relies on Samantha to survive. Samantha approaches Vanessa with an offer to sell her a car. Vanessa is hesitant. She can't really drive any more, but feels that she doesn't have a choice and agrees to buy the car. Which of the following is correct?

Question 16 options:

There was Duress. There is no contract.

There was misrepresentation. There is no contract.

There was Undue influence. There is no contract.

All of the above.

None of the above.

Steve orally agrees, at a family reunion picnic, to buy Bob's farm for $250,000, and all the terms of the agreement are settled. Bob agrees to let Steve come onto the property before the closing date so that Steve can renovate the farmhouse kitchen and build a new barn before he takes over formally. By the time Bob tells Steve that he has changed his mind and that he will not be completing the transaction on the closing date, Steve has spent $40,000 on the property.

Question 8 options:

Steve can use the doctrine of promissory estoppel to force Bob to complete the transaction and give him the farm in exchange for $250,000.

Because of the Statute of Frauds, Steve cannot get the farm, but he can sue Bob for the tort of deceit and recover the $40,000.

Under the Statute of Frauds, since their agreement was not evidenced in writing, Steve cannot enforce it in court, and cannot recover the $40,000.

Steve can ask a court to order specific performance of the contract because he has spent a lot of money on the property.

Under the doctrine of part performance, Steve can request that the court order specific performance of the contract.

Zenia contracts with Yvonne for a supply of specialized computer components worth $6,000, which she needs to meet a contract to supply Wendy with 60 laptop computers, a contract which is worth $65,000 to Zenia. Zenia makes it clear to Yvonne that her contract with Wendy is vital to let her get established in the market and that it is imperative that Yvonne meet the deadline. "If you can't," she says, "I'll take the business to someone who can." Yvonne wants the business badly, so, against her better judgment, she agrees to a clause in the contract which says that, for every day delivery is late, she will pay Zenia $10,000.

Since Yvonne was under duress to sign this contract, the court will not enforce the clause, although under normal circumstances they would.

Although the court would not normally enforce this clause, since Yvonne was aware of the vital importance in this case of prompt delivery, the court will uphold the clause if she is late delivering.

This is a liquidated damages clause and it will be enforceable against Yvonne

This is a penalty clause and the court will refuse to enforce it.

Because liquidated damages clauses are against public policy, Zenia will not be able to enforce this clause if Yvonne is late performing