Obligations Imposed Under Tort Law - Essay Example

?True or False Civil litigants have an automatic right of appeal to the Supreme Court of Canada. FALSE p2 2. Filing requirements for partnershipsare generally less onerous than for corporations. TRUE p36 3. A contractor who builds a house then sells it to the first owner will generally not be contractually liable to the second owner of the property for defective construction. TRUE p143 4. When a contract is voidable, the non-breaching party has the option to continue with the contract. TRUE p50 5. Because of the doctrine of remoteness, damages will only be awarded for breach of contract if the loss was caused by the breach. TRUE p59 6. When the intentions of the parties are clear from the written contract, a court will not consider additional evidence on the parties’ intentions. TRUE p64 7. An employment contract could contain an exclusion clause that prevents the employer from recovering from the employee damages the employer has to pay under the doctrine of vicarious liability. TRUE p151 8. Upon being issued a demand for documents, a party must produce all relevant documents. TRUE p158 9. Supervision connotes a greater degree of involvement during construction process than inspection. TRUE p168 10. Not all agreements are contracts. FALSE p44 Multiple Choice: 11. Which of the following is a federal power under the Canadian Constitution? A. FISHERIES p1 12. A director is considering buying a car for the corporation from a car dealership that is owned by his brother. To be absolutely safe, what should the director do before making the purchase? C. DISCLOSE THE DIRECTOR’S RELATIONSHIP WITH THE SELLER AND HAVE THE PURCHASE APPROVED BY THE INDEPENDENT DIRECTORS ON THE BOARD p39 13. To establish causation, the plaintiff must show that B. BUT FOR THE BREACH OF DUTY OF THE DEFENDANT, THE LOSS WOULD NOT HAVE OCCURRED, AND THAT THE DEFENDANT’S BREACH WAS THE PROXIMATE CAUSE OF THE LOSS. P137 14. When can a party revoke an offer? D. ANYTIME BEFORE IT IS ACCEPTED p45 15. Which of the following would be acceptable consideration in exchange for a contractor building a house? D. ALL OF THE ABOVE p46 16. The owner insists that the contractor perform certain work that the contractor claims is not part of the contract. Which of the following is an appropriate course of action for the contractor? C. PERFORM ALL CONTRACTUAL OBLIGATIONS APART FROM THE DISPUTED WORK p61 17. What is the name of the rule that generally excludes extrinsic evidence when interpreting a contract? C. PAROL EVIDENCE RULE p66 18. Which is the most common remedy for breach of construction contracts? B. DAMAGES p59 Short Answer: 19. What rule applies when federal and provincial legislation have a direct operational conflict? p1 When federal and provincial legislation have direct operational conflict, the Canadian Constitution declares that the federal law shall prevail. The constitution assigns all issues that have national importance under the power of the Federal Parliament. The fact that the federal laws also touch on the matter being handled by a provincial legislation means that it is of national importance. Therefore, the federal law should prevail over the provincial legislation. 20. If you are setting up a business and are not concerned about liability, but expect to be very successful, what disadvantages is there to operating as a sole proprietor? P34-35 If one operates as a sole proprietor, the primary disadvantage is the fact that the sole proprietor shall bear all liabilities that may be incurred by the business. Business losses, debts, and third-party liabilities are all for the account of the sole proprietor. Another disadvantage is on the matter of taxation. The income of the sole proprietor is subject to individual income tax which may have higher rate than partnerships and corporations. Also, he may not avail of any tax incentives that are available to partnerships and corporations. 21. What is the key difference between obligation imposed under tort law compared to those imposed under contract law? P131 The obligation imposed under contract law is defined by the terms of the contract itself. The only parties who need to comply with the obligations set forth in the contract are those who are privy and party to the contract. In the event of failure to comply with these obligations, only the parties to the contract may sue in court to enforce the terms and conditions of the contract. Non-parties do not have the right to sue based on the contract. On the other hand, the obligations imposed under tort law arise out of one’s failure to perform his legal obligations as required by law. The existence of a contractual relationship is not required in order to sue for damages for failure to comply with his legal obligations by reason of negligence, both intentional and unintentional. 22. Why is it advisable to record contracts in writing? P44 It is always best to record all contracts in writing so that in the event of disputes there is this piece of paper that the parties can refer to. Such details as what have been agreed upon by the parties, what are the considerations and when the contract became effective and when it will end can be easily read from the contract. There would be no more need for arguments or court litigation in order to ascertain the agreements between the parties. Also, in case one party to the contract commits breach, the terms and conditions of the contract that have been violated can be easily found in the written contract. The written contract is the best evidence of the agreement between the parties. 23. When will courts prefer the customary meaning of a word over its ordinary meaning? P65 When the courts are asked to interpret a contract that involves technical documents like in the case of construction contracts, the customary meaning of the ambiguous words are preferred over their ordinary meaning in everyday usage. This is done to ensure that the contract is interpreted within it proper context. Technical words are given their technical meanings as they would have been used and intended within the context of the contract. Read More