QUESTION 1

Noah entered into a contract to buy a red Porsche convertible, but the car that was delivered to him is a blue SUV. Noah may:

	a.	Cancel the contract and sue for damages.
	b.	Sue for an injunction.
	c.	Sue for specific performance.
	d.	Sue for damages only.

QUESTION 2

If you own a factory and are concerned about not being able to fill orders if your factory is shut down in a covid-19 lockdown, which type of clause should you include in your contracts with your customers?

	a.	Liquidated damages clause
	b.	Condition precedent
	c.	Force majeure clause
	d.	Exclusion clause

QUESTION 3

Scarlett emails Mel and offers to sell her store inventory for $40,000 cash. Mel replies by email: "OK; I will pay $10,000 cash tomorrow and give you a cheque for the rest next Thursday". Mel's reply is a(n):

	a.	Conditional offer
	b.	Acceptance
	c.	Option
	d.	Counteroffer

QUESTION 4

What type of clause is this: "Doggo Inc. may terminate this agreement, in its absolute discretion, by providing 10 business days' notice to Pupper Co."?

	a.	Limitation of liability
	b.	Exclusion clause
	c.	Condition subsequent
	d.	Cancellation clause

QUESTION 5

A party to a contract might wish to include a condition subsequent in the contract:

	a.	To avoid being bound by the terms of the contract if a specific situation occurs.
	b.	To avoid the high cost of litigation if the contract is breached.
	c.	To avoid forfeiting a deposit if a deadline is missed.
	d.	To ensure that any dispute is resolved according to the laws of a chosen jurisdiction.

QUESTION 6

What type of contract clause is this: "This contract, and all disputes arising under it, are governed by the laws of the Province of British Columbia"?

	a.	Force majeure clause
	b.	Choice of venue clause
	c.	Exclusion clause
	d.	Choice of law clause

QUESTION 7

Lisa's Lunches, a catering business, received an offer from Paula's Preschool to purchase 100 cupcakes for their holiday party for $200.00. The offer required that Lisa accept by email by November 15. Lisa accepted on November 16. Why would a court find that there was no agreement?

	a.	The offer had lapsed before acceptance.
	b.	There was no consideration.
	c.	The offer had been revoked.
	d.	The offer was unenforceable due to illegality.

QUESTION 8

If a term of a contract is unclear and the parties disagree on its meaning, a judge will resolve the dispute by:

	a.	Applying her own subjective interpretation of the term.
	b.	Applying the interpretation of the party who commenced the lawsuit.
	c.	Applying the interpretation of the party who drafted the contract.
	d.	Applying the interpretation of a reasonable person.

QUESTION 9

What type of clause is this:" in the event of damage to your vehicle, ParkCo will not be liable for more than $200"?

	a.	Force majeure clause
	b.	Limitation of liability clause
	c.	Condition precedent
	d.	Liquidated damages clause

QUESTION 10

A retailer in British Columbia orders a large quantity of toys from a toy manufacturer in Ontario, in an online transaction. The retailer fills in the online form on the manufacturer's website, pays with a credit card and clicks the "submit" button to complete the transaction. The contract is formed when:

	a.	The retailer clicks the "submit" button.
	b.	The transaction data reach the toy manufacturer's internet service provider.
	c.	The toy manufacturer sends a message to the retailer confirming the transaction.
	d.	The transaction data are processed by the retailer's internet service provider.