QUESTION 14 Newtown Meats Ltd. failed to deliver a restaurant's order for ground beef, forcing the restaurant to find another supplier. Unfortunately, the substitute product was contaminated, and now the restaurant is being sued by customers who became ill. Can Newtown be sued by the restaurant for the damages it must now pay its customers? O a. No, because Newtown was not negligent. O b. Yes, because the restaurant is entitled to expectation damages. O c. No, because the damages would be considered too remote. Od. Yes, because the damages would not have arisen had Newtown met its contractual obligations. QUESTION 15 Novation of a contract will result in the termination of the original contract. O True O False QUESTION 16 Recovery for non-pecuniary damages is not possible in contract law. O True O False QUESTION 17 Shadow Awning Inc.'s employee attended a client's home to install an awning over a window. What has just occurred? O a. vicarious performance O b. novational performance O c. assigned performance O d. substitutional performance QUESTION 18 Two financial institutions unknowingly advanced loans in exchange for an assignment of rents on the same apartment building. The tenants were served with notice of the assignment by one financial institution immediately, the other served notice one week later. With respect to the payment of the rents under the assignments, what advice would a lawyer give to the tenants? O a. Priority ranking is delegated to the first party to advance the loan. O b. Payment of the rents by the tenants is payable to the landlord. Oc. Priority ranking is delegated in the order notice was effected. O d. Payment of rents must be made to the assignor of the rents. QUESTION 19 Valiant Construction Inc. has assigned its contractual right to payment from one of its customers to ABC Lumber Ltd. in order to satisfy its debt to ABC. Which of the following statements is correct? O a. This arrangement is valid even without the consent of Valiant's client. O b. This arrangement must be consented to by Valiant's client in order to be legally enforceable. Oc. Valiant Inc. is now released from its obligations to its client. Od. ABC is liable to fulfill the contract in the event Valiant fails to do so.