CEN Quiz #3

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CEN Contract Principles Quiz

Test your knowledge on important contract principles with our CEN Contract Principles Quiz! This quiz explores various legal concepts essential for understanding contracts and their enforcement. Whether you're a student, professional, or simply interested in contract law, this quiz is for you!

Multiple-choice questions covering key legal principles
Understand the nuances of contract enforceability
Enhance your knowledge of contract law applicable to engineers

25 Questions6 MinutesCreated by NavigatingLaw327

Which of the following statements are true?

A. A contract is usually enforceable if the non-mistaken party did not know of the mistake made by the other party at the time the contract was signed

B. Contra proferentum is the legal principle whereby a court will interpret an ambiguous clause in favor of the party that drafted the clause

C. A court will apply a liberal construction approach to the interpretation of limitation of liability clauses

d. A court will permit extraneous evidence to be used to interpret contract clauses

E. None of the above

Which of the following statements are correct?

A. Contract A/Contract B is a legal principle applied to ensure that one party to a contract does not take advantage of the other party’s mistake

B. Penalty clauses in contracts are sometimes enforceable

C. A non-defaulting or innocent party can sue for breach of contract only to recover indirect or consequential damages

D. Limitation of liability clauses are not enforceable

E. None of the above

Which of the following are necessary elements of an enforceable contract?

Which of the following statements are true?

A. The case of Hunter vs. Syncrude is a case dealing with Quantum Meruit

B. A limitation of liability clause which limits one party’s liability to $1.00 is not enforceable

C. Equitable estoppel is a legal principle applied to ensure that one party to a contract can take advantage of the other party’s mistake

D. Both (b) and (c)

E. None of the above

Which of the following statements are correct?

A. Equitable estoppel is a legal principle applied to ensure that one party to a contract does not take advantage of the other party’s mistake

B. The case of Hunter vs. Syncrude is a leading case dealing with fundamental breach of contract

C. A limitation of liability clause which limits one party’s liability to $1.00 is not enforceable

D. Both (b) and (c)

E. None of the above

Which of the following statements are true?

A. Types of duress include economic duress and threatened violence

B. The case of Gotaverken Energy Systems vs. Cariboo Pulp and Paper is a case dealing with duress

C. Where an innocent party claims that undue influence has been exerted by the other party to a contract, the innocent party must take prompt action when the undue influence or threat is removed

D. Both (a) and (b)

E. All of the above

Which of the following statements are true?

A. Two types of duress are threatened violence and undue influence

B. Courts always adopt a strict construction approach to contract interpretation

C. Courts will always look to extraneous evidence when interpreting the terms of a contract

D. Both (a) and (c)

E. None of the above

As general legal principles, in the event of a breach of contract, which of the following are true statements?

A. The non-defaulting party is required to increase its damages as much as possible

B. The non-defaulting party may in certain circumstances be entitled to terminate the contract

C. The defaulting party may be required to compensate the non-defaulting party for its indirect or consequential damages suffered as a result of the breach of contract

D. Both (b) and (c)

E. All of the above

Which of the following statements are false?

A. Courts will imply a term into a contract when necessary to give the contract business efficacy

B. The Parol Evidence Rule applies to documents or happenings prior to, or contemporaneously with the making of the contract

C. Specific performance is a remedy which is always available to a non-defaulting party where there has been a breach of contract

D. The legal principle of frustration that the performance of the contract becomes impossible and not just more expensive

E. None of the above

Which of the following statements are false?

A. A minor does not have the legal capacity to enter into any contracts

B. The Statute of Frauds requires some contract to be in writing

C. Duress and undue influence are examples of a lack of consideration

D. Most corporations have the legal capacity of a natural person to enter into a contract

E. Both (a) and (c)

Which of the following statements are false?

A. Offers may be accepted by facsimile (fax)

B. Both parties must have a mutual intention to enter into a contract

C. Contract must always be in writing

D. Both (b) and (c)

E. Both (a) and (b)

Which of the following statements are true?

A. Consideration may consist of an exchange of promises to provide something of value

B. Quantum Meruit is the legal principle by which a court may enforce an otherwise unenforceable gratuitous promise

C. Letters of intent are only expressions of interest and are never enforceable

D. Both (a) and (b)

E. All of the above

Which of the following statements are true?

A. Consideration can simply be the exchange of $1.00 between two parties to a contract

B. Most offers are revocable even if states to be irrevocable unless special formalities are followed

C. Quantum Meruit is the legal principle applied by courts to determine whether a limitation of liability clause in enforceable

D. Both (a) and (b)

E. All of the above

The Hedley Byrne vs. Heller case is important to engineers because it establishes that:

A. Reliance on professional skill and judgement can give rise to a duty of care

B. Professionals may be liable for negligent advice

C. Both of the above (a and b)

D. A disclaimer will not protect a professional from liability for negligent advice

The Hedley Byrne vs. Heller case is important to engineers because it establishes that:

A. Professionals may be liable for negligent advice

B. Reliance on professional skill and judgement can give rise to a duty of care

C. A disclaimer may protect a professional from liability for negligent advice

D. All of the above

A defendant who is concurrently liable in tort and contract:

A. Is liable to more than one plaintiff at the same time

B. Is liable under tort and contract at the same time

C. Has limited liability under the new Limitations Act, 2002

D. None of the above

Limitations periods establish:

A. The scope of the engineers scope of services

B. The maximum hourly rates which professionals may charge for their services

C. The rate of tax which must be paid in Canada

D. The time period within which an action be commenced by the plaintiff

E. The deadline by which an engineer must deliver his or her report to a client

The Donoghue vs. Stevenson case establishes that:

A. Reliance on professional skill and judgement can give rise to a duty of care

B. A disclaimer will not protect a professional from liability for negligent advice

C. Engineers may be liable for economic loss

D. None of the above

Which of the following will affect the enforceability of a contract

A. The acceptance of an offer was communicated by facsimile (fax)

B. The contract requires that all disputes must be resolved by using binding arbitration

C. The contract contains a limitation of liability clause

D. There is no consideration, but the contract is under seal

E. None of the above

Which of the following statements are true?

A. Special formalities are required to ensure irrevocability of an offer

B. Most offers are revocable even if they are states to irrevocable

C. Offers must be accepted in their entirety, otherwise it is simply a counter-offer

D. Both (a) and (c)

E. All of the above

Which of the following project structures has the highest risk when it comes to the Occupational Health and Safety Act:

Which of the following statements are true?

A. Dabous vs. Zuliani is a case dealing with inspection services

B. Engineers can be concurrently liable for breach of contract and for negligence

C. In administrating the term of a construction contract, an engineer may be required to make decisions affecting the rights of the owner and the contractor.

D. Both a and b

E. All of the above

Which of the following statements are false?

A. If one party makes a fraudulent misrepresentation, the other party has the right to sue for damages

B. An engineer is not normally a party to construction contract between an owner and a contractor

C. The case of Dabous vs. Zuliani is a case dealing with improper inspection services by an architect

D. Contract A and Contract B are legal terms used to describe contracts that may arise in a bid and tender procurement process

E. None of the above

Which of the following are necessary elements of an enforceable contract?

Which of the following will affect the enforceability of a contract?

A. The acceptance of an offer was communicated by facsimile (fax)

B. The contract requires that all disputes must be resolved by using binding arbitration

C. The contract contains a limitation of liability clause

D. There is no consideration, but the contract is under seal

E. None of the above

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CEN Quiz #3

CEN Contract Principles Quiz

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