Reference no: EM133376277

Question

1. The privity of contract rule:

a. Stipulates that a contract does not confer any benefits or place any obligations on a third party.

b. Can be justified by the third party's lack of consideration.

c. Can have exceptions, as would be the case if a third party replaced an existing party to the contract.

d. All of the above.

2. Which of the following statements most accurately describes the concept of a fiduciary duty?

a. A duty to ensure that the affairs of other persons are well attended to.

b. A duty to act honestly and in good faith.

c. A duty to take all proper and necessary precautions in dealing with the public.

d. A duty to avoid acts that will injure another person.

e. A duty to act with all due diligence.

3. This remedy requires payment of a reasonable amount to cover work done, even though there was no agreed-upon sum or the work is less than what was contracted for:

a. Specific performance

b. injunction

c. Rescission

d. Quantum Meruit

4. Which of the following shows accurate use of the doctrine of promissory (equitable) estoppel?

a. George told Hans that he would give him his printer. If he doesn't, Hans could use the doctrine to force him to do so.

b. George wants to force Elaine to honour her promise to pay him $2. After he paid for a video they watched, she was so moved by the movie she said she would pay half the cost.

c. This doctrine can be used by a plaintiff to endorse a written promise signed and sealed (i.e., a seal has been affixed next to the signature of the promisor).

d. Lee, a defendant, can use this doctrine as a defence against a plaintiff insisting on his full legal right when he had promised to forgive Lee some of Lee's legal obligation and Lee relied on that promise.

e. If Lam requests services from Jones and there is no mention of price, if Lam doesn't pay Jones, this doctrine can be used to force Lam to pay a reasonable amount.

5. Which of the following best describes an illegal contract?

a. A contract that is illegal at the time it is formed.

b. A contract that is illegal in the way in which it is performed

c. A contract that has been breached by one of the parties.

d. A contract that lacks consensus, consideration, capacity, and intention.

e. A and B

6. A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

a. Mistake

b. Illegality of object

c. Rescission

d. Non-est factum

e. Rectification

7. Creative Farming Ltd. manufactures fertilizer from organic matter, a by-product of which is explosive methane gas. During the processing, some of this gas escaped and drifted onto the adjacent property, where it caused an explosion, extensively damaging a building owned by XYZ Co. Creative Farming Ltd. would be liable for the loss under which one of the following principles of tort law?

a. Strict liability

b. Vicarious liability

c. Product liability.

d. Occupiers' Liability Act.

e. Contributory negligence