Chapter 10 Contracts Flashcards
Zelda was in a good mood one day, and she went over to her next door neighbour Herb’s house and cleaned all his gutters. When Herb returned home from work, he was thrilled by what Zelda had done, and he said “Zelda, I am going to give you a case of wine for doing this.” Weeks passed, and finally Zelda asked Herb when she could expect to receive her wine. Herb said that he had changed his mind. Zelda is now furious and wants to sue Herb in small claims court. Which of the following statements is most relevant to these facts?
(1) The law will not examine the adequacy of consideration.
(2) A voidable contract exists until it is repudiated by the party entitled to do so.
(3) Past consideration is no consideration.
(4) Breach of a condition of a contract entitles the injured party to terminate the contract.
3
The court will not normally grant the remedy of specific performance where:
(1) the plaintiff is a limited company.
(2) the defendant is without means.
(3) damages are considered to be an adequate remedy.
(4) the contract has already been partially performed.
3
Which one of the following is NOT a requirement to establish misrepresentation in contract law?
(1) There must be an assertion of fact.
(2) The assertion must be false.
(3) The assertion must have been material to the formation of the contract.
(4) The assertion must be in writing.
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Which of the following is NOT an example of a breach of contract?
(1) After Don contracted with Toni to buy his car, the night before Don was supposed to pay the price and take the car, it was struck by lightning in Toni’s driveway and destroyed.
(2) After Babs contracted with Quin in May to rent his motorhome for one week in July, Quin telephoned Babs and told her that he was going to be using the home himself that week, and that she would not be able to rent it.
(3) Fred contracted with Jordan to sell him his collection of hockey cards, but one day later Fred sold them to Andrew, who paid him $15 more than Jordan had agreed to pay.
(4) Adrian contracted to paint Woodie’s house starting on September 1 for a price of $500. On September 1 Adrian failed to turn up, and did not return any of the messages that Woodie left on his answering machine.
1
Which one of the following is NOT a remedy for breach of contract?
(1) damages
(2) specific performance
(3) injunction
(4) rectification
4
A voidable contract is:
(1) one which never existed at all, even if the parties want it to exist.
(2) a contract which one of the parties can cancel.
(3) unenforceable.
(4) one which offends against public policy or against a particular statute.
2
On March 7 Allan contracts, in writing, to sell his home to Bob for the price of $100,000. The sale is to complete on March 31. Unknown to either Bob or Allan, the house was destroyed on March 6. Accordingly, there has been:
(1) a mutual mistake.
(2) a frustration of the contract.
(3) a common mistake.
(4) none of the above.
2
A “subject to” clause in a contract of purchase and sale is correctly known as a:
(1) condition precedent.
(2) warranty.
(3) condition subsequent.
(4) penalty clause.
1
Generally speaking, a contract cannot be enforced against an infant unless:
(1) the contract is affirmed by the infant after he reaches 19 years of age.
(2) the infant performs or partly performs the contract within a year after reaching his 19th birthday.
(3) the infant does not repudiate the contract within a year after reaching his 19th birthday.
(4) All of the above will make a contract with an infant enforceable.
4
Sally contracted to purchase sewing machines wholesale at $100.00 each, with a delivery date of November 30. The wholesaler did not deliver the machines until December 31. Sally had a buyer on November 30 willing to pay $250 each for the machines but by December 31 the value had dropped to only
$75.00 each. Which is Sally’s best remedy against the wholesaler?
(1) quantum meruit
(2) specific performance
(3) damages
(4) injunction
3
On March 7, Allan contracts, in writing, to sell his home to Bob for the price of $100,000. The sale is to complete on March 31. On March 8, the house is destroyed. Accordingly, there has been:
(1) a mutual mistake.
(2) a frustration of the contract.
(3) a common mistake.
(4) none of the above.
2
Bernadette has agreed to purchase Steve’s home for $438,000. However, before the sale completes she discovers that she has been the subject of an innocent misrepresentation which materially affects the contract. Bernadette may go to court and ask for the application of which of the following legal principles?
(1) revocation
(2) rectification
(3) rescission
(4) None of the above
3
Which of the following statements concerning a corporation’s capacity to contract is TRUE?
(1) Under the Business Corporations Act, a contract entered into by a company before that company exists CANNOT be ratified after the company is formed.
(2) There can never be a limitation on the legal capacity of a corporation to enter a contract because a corporation can contract just as an individual person can.
(3) Any person may ascertain the legal capacity of a corporation to contract by reviewing its incorporation documents maintained at its official records office.
(4) None of the above are true.
3
The courts will never allow the remedy of specific performance where:
(1) the plaintiff is a limited company.
(2) the defendant is without means.
(3) damages are considered to be an adequate remedy.
(4) the contract has already been partially performed.
3
The doctrine of privity of contract:
(1) creates the right of a third party to sue on a contract.
(2) only applies to contracts creating an interest in land.
(3) does not apply to bare licences.
(4) does not apply to contracts where an interest in land is created.
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