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If neighbours have a contract agreeing not to erect a building that blocks the other's view, which remedy might the court impose if that agreement is breached?
Mandatory injunction.
In which of the following situations would the contract not be discharged by agreement?
A condition subsequent that calls for termination of the contract has not been met.
Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?
An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a "fundamental breach" of the contract.
Which of the following is false with regard to ending a contract by agreement?
A contract can be ended by one party if he finds a better deal, e.g., by cancelling an order that has been accepted, as long as this is done before performance.
Ibolya entered into an employment contract with a Toronto advertising firm, VertaNet Ltd. The agreement included a non-competition clause that prevented her from participating in the advertising field in Toronto for five years after termination of her employment. In the event of abreach, the contract provided that Ibolya would have to pay VertaNet the sum of $500,000 as liquidated damages. Ibolya worked for VertaNet for a period of time, then took another job in Vancouver where she worked for four and half years. Six months before the expiry of the five-year period in her VertaNet contract, Ibolya returned to Toronto to take a part-time position as a small advertising firm. Although VertaNet did not suffer any damage, VertaNet sued Ibolya claiming $500,000. What is the likely outcome?
The non-competition clause is likely a penalty and therefore unenforceable.
In all but one of the following situations, the contract is frustrated. Identify the exception.
Ed, a trucker with whom you contracted last month to transport stoves tomorrow, phones to tell you that his truck has broken down.
Sam entered into a contract for the purchase of a used dump truck from "Joe's Heavy Duty Trucks." The written contract clearly specified, among other things, that "it shall be a warranty for this contract that the truck has the capacity of carrying and properly dumping loads of up to 4,000 kg of gravel." In fact, when Sam loaded the truck with 4,000 kg of gravel, he discovered that the hoist on the truck was not capable of dumping it. Only if the load was reduced to 3,000 kg could the gravel be dumped. Sam obtained an estimate stating that it would cost $8,000 to reinforce the hoist mechanism of the truck so that it could handle the dumping of 4,000 kg of gravel. When Sam approached Joe demanding satisfaction, Sam pointed out another term of the agreement that stated that in the event of a breach of contract the "maximum damages payable to the purchaser are limited to $5,000." Sam sued. Which of the following statements is correct with respect to the legal position of the parties?
Sam must keep the truck and sue for damages, but those damages are limited to $5,000.
The principle of substantial performance can best be described as:
All or most of contractual obligations are fulfilled.
Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?
If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again.
In which of the following is the contract not ended by agreement?
Randy visited Terry two weeks after the contract but one month before performance date to say he wouldn't do it. Terry had already paid Randy for the work. After hearing Randy's story, Terry said, "Just forget it, good bye and good luck."
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