QUESTION 46

A party that deliberately makes performance impossible cannot rely on the doctrine of frustration to discharge his obligations. Self-induced frustration is really nothing more than

a) a breach of contract.b) an unforeseeable event.c) something radically different from what the parties initially thought might occur.d) an implied term.e) a statute barred claim.

QUESTION 47

Which of the following provides the best example of discharge of contractual obligations by novation involving a change in material terms?

a) a customer prepays for 5 kilograms of prime rib, but cancels the order because he instead wants to buy 25 kilograms of filet mignon for a business party.b) a butcher's shop changes ownership and the new owner fills the outstanding orders.c) a butcher fills his order two days late because he was seriously ill.d) a butcher runs out of Grade AAA beef and offers Grade A as a substitute (with a good discount) to all customers with existing orders.e) a butcher's shop burns down and the owner is not able to fill his orders.

QUESTION 48

George Edwards has just bought a brand new furnace from Henry's Furnace Company. Towards the end of the installation of the furnace, a piece of piping falls on the furnace and scratches one side of it. Because of the scratch, George does not want to pay for the furnace. In a lawsuit by Henry's Furnace Company for payment

a) George will successfully defend the lawsuit because the scratch is a major breach and terminates the contract.

b) George will successfully defend the action because a brand new furnace is not the same as a scratched furnace.

c) George will successfully defend the lawsuit because the scratch fundamentally changed the contract.

d) George will lose the lawsuit because the scratch is a minor breach of the contract.

e) George will lose the lawsuit because he already provided a post-dated cheque for the full amount of the furnace.

QUESTION 49

Mitigation is an important concept that is often considered by judges in assessing damages in cases involving breach of contract. Mitigation is best described as

a) the obligation to minimize the breach.b) the innocent party taking reasonable steps to reduce or eliminate damage which flows from a breach of contract.c) helping the other party cope with the breach of contract.d) reducing the other party's liability under the contract.e) avoiding adding unnecessary damages to the innocent party.

QUESTION 50

Between the time when a contract is formed and the date that performance is required, a promisee is entitled to

a) notice of any anticipatory breach.b) performance of the warranties.c) notice of any intention on the part of a party to breach the contract.d) notice of all conditions and warranties.e) a continuous expectation of performance.

QUESTION 51

Leslie agreed to buy a unique antique dresser from Fast Eddy's Furniture for $25,000. She made a down payment of $1,000 and agreed to return and pick the item up at a later date. However, when she returned, Fast Eddy refused to give her the furniture saying that he had found a buyer who would pay a significantly higher amount in sixty days. Leslie may be entitled to which of the following equitable remedies

a) quantum meruit.b) rectification.c) damages.d) compensation.e) specific performance.

QUESTION 52

A genuine estimate of damages contained in a contract as a term of the contract can best be described as

a) reliance damages.b) liquidated damages.c) nominal damages.d) expectation damages.e) consequential damages.

QUESTION 53

An injured party may have several remedies available for breach of contract including but not limited to any of the following EXCEPT

a) damages.b) specific performance.c) injunction.d) rescission.e) fine or penalty.

QUESTION 54

General damages are sometimes awarded by judges in civil lawsuits. They are

a) an amount awarded for losses that cannot be quantified with precision in monetary terms but which nonetheless the court believes is necessary to compensate an injured party fairly

.b) anything of value awarded to a party to acknowledge a breach of contract where the loss sustained is negligible.

c) an order requiring a defendant to do a specified act, most commonly to complete a transaction.

d) an award of a reasonable price for work done or services performed at the request of one party but in the absence of a specific agreement as to the compensation for the goods or services.

e) damages that flow naturally from the contract.

QUESTION 55

Dexter purchased some flex tape after seeing an advertisement on TV. When he received the product he noted that there was a paragraph in the instructions entitled "LIMITED WARRANTY" which said, in part, that "product liability is limited to the price paid by the customer". This is a type of

a) sanction.b) implied warranty.c) exemption clause.d) express warranty.e) insurance.