Commercial Law
1. Who is the plaintiff in this case: Febasco Ltd v Cogan (1990) Or (2d) 254 (HCJ)?
2. Is it true that acceptance occurs -when an electronic document enters an information system designated or used by the address. for the purpose of receiving documents of the type sent and is capable of being retrieved and processed by the addressee” Nova Scotia E-Commerce Act s. 24121(2)(a)? Why/why not?
3. A wedding planner had a contract to plan a white wedding for a happy couple. She has strict instructions that everything had to be white and — the flowers had to be white so she bought lilies; the food had to be white so she chose scallops, pasta, onions, cauliflower,haddock, and a white wedding cake with vanilla ice cream; she bought white wine; the groom’s suit was white; the wedding dress was white, and the limousine to take the bridal party to the wedding had to be white.
But when the limousine arrived to pick up the bridal party immediately before the wedding,the colour of the limousine was black. Did the wedding planner breach a condition or a warranty? Why?
4. Chris, who is an engine mechanic, purchased a new machine to diagnose problems with engines from Engine Diagnostics Ltd. The contract stated it would be delivered October 1.
Chris and the salesperson discussed the fact that Chris had to have the machine on October 1 or else he would lose a contract with Saint Mary’s University to service and fix all their engines. However. the machine was not delivered until October Chris believes he is entitled to sue Engine Diagnostics for breach of contract. The one thing he is not sure about is whether his losses due to losing the Saint Mary’s contract are remote. Are they? Why/why
not?
5. What is the aim of damages when someone has breached a contract?
6. Ali paid Sport Fisherman Ltd for a week of fishing off the coast of Nova Scotia. When Ali showed up for his trip Sport Fisherman Ltd told him that they could not take him fishing because they did not have a license for the boat they wanted to use. At the last minute Ali had to pay twice as much money to go fishing with a rival company. Ali’s lawyer found out
that Sport Fisherman owned 4 fishing boats. but had only been granted three fishing licenses from the federal government that year which they decided to use with the other boats.
When Ali’s lawyer decided to sue Sport Fisherman for breach of contract Sport Fisherman said the contract was frustrated. Was the contract frustrated? Why/Why not?
7. Suzie paid Beth for a Rocket Propelled Grenade Launcher. In Canada it is illegal to possess Rocket Propelled Grenade Launchers.) Beth promised to deliver the launcher to Suzie the next day. There was no sign of Beth or the grenade launcher the next day. Would Suzie be successful if she sued Beth for breach of contract?
8. Bedford Computer Corp had a contract with Cardboard Ltd to buy 100 cardboard boxes
each week for one year so that Bedford Computer Corp could ship computers to their customers. After one month of doing business, and without any warning, Cardboard Ltd told Bedford Corp they would not sell them any more boxes. Bedford Computer did not immediately start looking for a new supplier of boxes. They waited 2 weeks before beginning to look. And 3 weeks after that they started looking they found a new supplier of cardboard boxes. At that point Bedford Corp sued Cardboard Ltd for breach of contract claiming their damages amounted to 5 weeks of lost profits because they could not ship any computers without boxes for 5 weeks. Is Cardboard Ltd likely to be successful in arguing Bedford
Computer should have mitigated their losses? Why/Why not?
9. Charlie and Bob are best friends.
Charlie said to Bob, “Would you give me $200 for my bicycle?”
Bob said, “That price is too high, how about $150?”
Charlie said. “No, I will sell it to someone else.”
A short time later Charlie sold his bicycle to David.
Bob phoned up Charlie and said, “OK. I will give you $200 for your bicycle.”
Charlie said “Sorry, you are too late. I already sold it to David.”
Is Bob too late? Why/why not
10. Peter has a contract with Carbon Fiber Boats Inc in Nova Scotia to build him a special type of carbon fibre kayak for $5,000 that he needs for the Canadian Olympic Trials. But before they began building the boat Carbon Fiber Boats Inc told Peter they would not build him the boat because they would lose money on the job. Peter discovered that it would cost him $9,000 to have a similar boat built by another firm in Germany. Peter is thinking about suing Carbon Fiber Boats Inc for $4,000, his damages due to the breach of contract, or getting a court order for specific performance ordering Carbon Fiber Boats to build him the
kayak. Which remedy, damages or specific performance, is a judge more likely to award to Peter? Why?
11. Last night you invited your Valentine (who is also a classmate in CMLW 2201) to go to a movie with you. You both agreed to meet at Park Lane Movie Theatre. When you arrived you bought two tickets and waited for your Valentine, but they never showed up? The next day you asked your ex-Valentine to pay you for the wasted movie ticket. Your ex-Valentine
said “Forget it. We don’t have a contract!!” Is your ex-Valentine correct? Why or why not?
12. What are the advantages of mediation compared to suing someone in court?
13. Pierre breached a contract he had with Michelle to build Michelle a new workshop to repair cars. They agreed that the damages would be $1,000 and Michelle and Pierre signed a document stating that “Pierre would pay Michelle $1,000 to settle the problem and Michelle would not to sue him in court.” If Michelle changed her mind and wanted to sue Pierre,
could Michelle successfully argue that there is no consideration for this new agreement?
Why/why not?
14. On April 1 Jane read on Saint Mary’s website a statement saying that “SMU was offering to anyone who qualified for admission a 25% reduction on next year’s tuition fees if they registered by April 30. But on April 7 they took down this webpage because so many people wanted to take advantage of the offer. When Jane tried to register on April 9 she was told by the clerk that the offer had been cancelled. Is SMU correct? Can SMU do this? Why/why not?
15. Saint Mary’s Art Gallery advertised a sale of art works on their website. Anyone wanting to buy something was instructed to email the gallery director at [email protected]
Ping emailed the gallery director saying she wanted to buy a particular painting of the McNally Building. The gallery director emailed her back telling her she could pick up and pay for the painting the next day. When Ping went to the gallery the next day the gallery director told her they had sold the painting to someone else.
But Ping thinks she has a contract. Does she? Why/why not
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