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Exam 4: Enforceability of Contractual Rights

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Question 71

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Anderson Ltd.was negotiating a contract with the Bolton Manufacturing Co.for a large number of components for the office equipment Anderson Ltd.sells.Anderson is well aware that the normal way of pricing the components is "by the piece",but Bolton Manufacturing sent a written offer to Anderson to sell the components at $5 a pound.The components would normally cost about $5.50 each and there are about two of them to the pound.After receiving Anderson Ltd.'s acceptance of the offer,Bolton realized the mistake it had made and is now refusing to perform the contract.Anderson has sued for breach of contract.

A) Bolton will succeed since a mistake as to value makes the contract void.
B) Since the mistaken phrase is ambiguous,the courts will not interpret it and Bolton will succeed.
C) A reasonable person would have realized that there was a mistake about the price so Anderson will not be allowed to snap up the offer.
D) There is offer,acceptance,and consideration from each party and,since the court will not consider the adequacy of consideration in a contract,Bolton has no grounds to refuse to perform the contract.
E) While a reasonable person might not have realized that there was a mistake in the offer,the court will not allow Anderson to enforce the contract if doing so will cause hardship for Bolton.

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Question 72

True/False

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The Auto Garage advertised vehicle repairs by "licensed mechanics." Tony,a car owner,took his vehicle to Auto for repairs.The garage owner,Xavier,examined the car,and indicated that extensive repairs were required.Tony left his car with Xavier,and the repairs were carried out by another licensed mechanic,Rick,an employee.Tony paid $150 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine. -Tony may sue only Rick,the mechanic who negligently performed the service.

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Question 73

True/False

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The Auto Garage advertised vehicle repairs by "licensed mechanics." Tony,a car owner,took his vehicle to Auto for repairs.The garage owner,Xavier,examined the car,and indicated that extensive repairs were required.Tony left his car with Xavier,and the repairs were carried out by another licensed mechanic,Rick,an employee.Tony paid $150 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine. -Money damages awarded by the court for the negligence would be approximately equal to Tony's loss.

While new federal and provincial legislation allows for the creation of valid and enforceable documents,there are several types of documents that are not valid if executed electronically.Name four classifications of such documents.