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Chapter 9 The End of the Contractual Relationship
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Chapter 9 The End of the Contractual Relationship Business Law In canada 11th Edition By Yates -Test Bank
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Business Law in Canada, 11e (Yates)Chapter 9 The End of the Contractual Relationship
1) Which of the following is true with regard to ending a contract by performance, agreement, or
breach?
A) A contract can be ended by breach if there was a either a breach of condition or a breach of
warranty.
B) A person has legally tendered performance if he pays a $500 debt in 25-cent coins.
C) If a person properly tenders performance of a service that is rejected by the other party, he is
required to try again and again.
D) A contract ends by agreement when the parties include in the contract a "condition
subsequent," i.e., a clause that says the contract will end upon the happening of a specified future
event that then takes place.
E) If one party to the contract has paid for a service, but now the other doesn't want to perform,
the contract is ended by agreement as long as they both agree to call it off.
Answer: D
Diff: 2 Type: MC Page Ref: 277
Topic: Ch. 9 - Discharge by Performance
Skill: Applied
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
2) Pat O'Grady owes Robinson $5000 in cash, but resents Robinson talking about O'Grady's debt
among mutual acquaintances. O'Grady wants to know which of the following tactics would be
legal performance.
A) Deliver the money to his house (instead of to his office) at 3:00 a.m. on the due date
B) Not pay Robinson until Robinson came for the money
C) Pay Robinson on time but pay it all in dimes
D) Pay him on time but with a cheque
E) Pay him on time in $5 bills
Answer: E
Diff: 1 Type: MC Page Ref: 277
Topic: Ch. 9 - Discharge by Performance
Skill: Applied
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
1
Copyright © 2017 Pearson Canada, Inc.
,3) Which one of the following is true with regard to the ending of a contract by performance?
A) In law, a certified cheque is the same as cash.
B) If a person owing money has tendered payment in a reasonable way, at a reasonable time, and
it has been refused, he is free from any further obligation to pay.
C) If a person attempts to perform services in accordance with the terms of the contract and the
buyer refuses those services, the person attempting to perform can sue the buyer with no further
attempt to perform.
D) Legal tender consists of bills or coin in any amount.
E) If a warranty is breached, the victim has no further obligation to perform under the contract.
Answer: C
Diff: 2 Type: MC Page Ref: 277
Topic: Ch. 9 - Discharge by Performance
Skill: Recall
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
4) Which of the following is false with regard to ending a contract by agreement?
A) A contract can be ended by the happening of a "condition subsequent" provided for in the
contract.
B) 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.
C) A contract can be ended by agreement if neither party to the contract has performed his or her
obligation.
D) A contract can be ended by agreement if one party has performed his obligation and agrees to
take something as satisfaction from the other although that other hasn't performed according to
the contract.
E) A contract can be ended by agreement by "mutual release."
Answer: B
Diff: 2 Type: MC Page Ref: 288
Topic: Ch. 9 - Discharge by Agreement
Skill: Recall
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
2
Copyright © 2017 Pearson Canada, Inc.
,5) Which of the following is true with regard to tender of performance?
A) If the seller attempts to deliver the contract goods at the time and place designated in the
contract but the buyer refuses delivery, the seller will have to make another attempt to deliver
before he can sue for breach of contract.
B) If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he
was supposed to, but Valley's manager tells him to come back later, Pete has no further
obligations and can sue for breach of contract.
C) If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the
place designated in the contract, she will have to accept that cheque even though there was no
mention of payment by cheque in the contract.
D) If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful
tender of Ivan's obligation.
E) If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m.
Saturday, they cannot be refused as long as the delivery was before the specified July 10
deadline.
Answer: B
Diff: 3 Type: MC Page Ref: 277
Topic: Ch. 9 - Discharge by Performance
Skill: Applied
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
6) 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?
A) If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic
has to take them.
B) If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said
he wouldn't take a cheque.
C) If Jed shows up with cash for the mechanic on the day and at the place designated in the
contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him.
D) 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.
E) If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor
seeks her out for payment.
Answer: D
Diff: 2 Type: MC Page Ref: 277
Topic: Ch. 9 - Discharge by Performance
Skill: Applied
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
3
Copyright © 2017 Pearson Canada, Inc.
, 7) The principle of substantial performance can best be described as when
A) all or most of the contractual obligations are fulfilled.
B) a major term of the contract is mostly fulfilled.
C) minor terms of the contract are yet to be fulfilled.
D) minor terms of the contract are disregarded.
E) only exact compliance with the contract will qualify as performance.
Answer: A
Diff: 1 Type: MC Page Ref: 277
Topic: Ch. 9 - Discharge by Performance
Skill: Recall
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
8) Suppliers of goods and services try to eliminate their liability, and the courts have discouraged
this by applying the principle that some failures are so significant that there is no performance of
the contract. This concept is known as
A) repudiation.
B) frustration.
C) anticipatory breach.
D) fundamental breach.
E) exculpatory clause.
Answer: D
Diff: 1 Type: MC Page Ref: 280
Topic: Ch. 9 - Discharge by Breach
Skill: Recall
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
9) The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a
breach of a contract that was inconsequential and immediately corrected. What did the Supreme
Court of Canada hold?
A) The contract had been substantially performed and the option was still available.
B) The breach, although minor, rendered the contract unenforceable.
C) The breach, although minor, rendered the contract voidable at the option of the non-breaching
party.
D) The contract had not been perfectly performed, so the contract was void.
E) No breach can be considered inconsequential at law.
Answer: A
Diff: 2 Type: MC Page Ref: 278
Topic: Ch. 9 - Discharge by Performance
Skill: Recall
Objective: Chapter 9: 1. Illustrate how a contract is discharged by performance.
Bloom's Taxonomy: Knowledge
4
Copyright © 2017 Pearson Canada, Inc.
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