The question/s is relating to Canadian Business Law - Contracts. Instructions: Identify and assess whether the promises
Question:
The question/s is relating to Canadian Business Law - Contracts.
Instructions: Identify and assess whether the promises and contracts in the above scenario are binding andanyrelevantremedies.Explainwhyeachpromiseorcontractisorisnotbindingwithreferenceto the legal principles of contract law.
Background: Brian works for TNC, an oil and gas company that is primarily concerned with building pipelines, in sales. One day, he secures a major contract with DWH, a company that owns pipelines, worth $50 Million to upgrade a pipeline from a processing facility in Fort McMurray to a refinery in Saskatchewan. Brian emails his boss, Tanya, to tell her the good news. She comes by his office later that day and promises him a $20,000 bonus for, "doing such a good job."
Danemailshisboss,Lara,totellherthegoodnews.Shecomesbyhisofficelaterthatdayand promises him a $15,000 bonus for, "doing such a good job."
Later that day, Dan gets a phone call from his wife, Wanda. Explains that their fourteen year old daughter, Jenny, had bought herself a new computer for $2,000. Jenny is now experiencing a major caseof"buyer'sremorse"afterhavingmadesuchahugepurchase.Wandaexplainsthattherewasa"no returns" policy on the receipt and the store is refusing to let Jenny return the computer and get her money back.
Question:IsJennyboundbythecontractwiththestore?Explainwhyorwhynotwithreferencetothe principles of contract law. (3 marks)
Afew months later, things are not going well for PumpIt. The upgrade contract Dan landed has a major problem.When Dan had negotiated the contract, the representative fromTransOil had said that the land the pipeline had been built on was all flat, high ground away from any water sources. However,whenPumpItcrewsbeganworkingontheproject,theyfoundthatlargepartsofthepipeline were, in fact, running through bogs and marshes. This terrain is much more difficult to work in, as equipment and trucks often get stuck in the mud.As a result, it's taking PumpIt crews much longer to perform their work than had the pipeline been on the flat, high ground that TransOil had claimed. In fact, PumpIt now stands to incur a loss due to all the added expense of having to take more time and work in much more difficult conditions. Unknown to Dan, the TransOil representative wasn't paying attention to the design document and that's why he didn't tell Dan that the pipeline ran through bogs.
Question: Is PumpIt bound by the contract with TransOil? Explain why or why not with reference to the principles of contract law. (6 marks)
To make matters worse, Larahas stillnot paid Dan the $15,000 bonus shepromised him and now says she's not going to give it to him due to all the trouble theTransOil contract has caused. She's so angry athim that she threatens to fire himif hedoes notsign acontract whereby Dan agrees to hand overallthepatentrightstoaninventionhehaddevelopedandpatentedbeforeeverworkingPumpIt. Dan agrees.
Question:IsDanboundbyhispromisetohandoverthepatentrights?Explainwhyorwhynotwith reference to the principles of contract law. (4 marks)
That evening, Dan goes out for a few drinks at a pub to try and relax. He ends up drinking heavily that night and stumbles home, reeking of alcohol. When he wakes up the next day, he finds papers stuffed into his jacket pocket. When he read them, he's horrified to find that, while stumbling home drunkthepreviousnight,hehadgoneintoacardealershipandpurchasedabrandnewtop-of-the-line BMW with a very expensive custom paint job.
Question:IsDanboundbythiscontractfortheBMW?Explainwhyorwhynotwithreferencetothe principles of contract law.(4 marks)
To note: Is the contract entered with an illiterate person? If so, why is the contractisnotbinding?