Contract Law
Contract Essentials
Voiding a Contract
Breach of Contract
Procurement
100

What is a contract?

A contract is an enforceable voluntary agreement between two or more parties

100

Name 5 elements of a binding and enforceable contract

Offer and Acceptance; Mutual Intent Consideration;  Legal Capacity; Lawful Purpose

100

False statement made knowingly to induce a contract

Fraud

100

What is the Breach of Contract?

Failure by one party to perform their obligations

100

Steps during tendering process

Plan; Advertise; Request Formal Proposals; Evaluate Vendor Proposals; Sign Contracts

200

In which forms can a contract be legally made?

Written or Oral; Explicit or Implied. (except sale/transfer of land, sale > $500, activities longer than 1 year )

200

What document indicates parties' intentions to enter a contract

Letter of Intent (non binding)

200

This common contract clause allows parties to be excused from obligations when unforeseeable events, like floods or earthquakes, prevent performance.

Force Majeure clause (Frustration - circumstance to void the contract when an unforeseen event makes the performance of the contract either impossible or of no value)

200

A plant shutdown resulting from a contractor failing to perform services would be an example of

Indirect damages - "consequential" to the breach

200

What contracts are involved in tendering process?

A - when bid is submitted; B - when bid is accepted, actual contract that addresses the substance of work and services

300

Who has the legal right to enforce a contract under the doctrine of privity

Only parties to the contract (privy to the contract) can enforce a contract

300

T or F: A contract is enforceable if one party is a minor

False. Contract my be enforceable by the minor but unenforceable by the other party (Legal capacity)

300

When contract provisions agreed but documented inaccurately, a court may issue this 

A common mistake may be corrected by an order of rectification

300

A contractor delivers a bridge slightly later than agreed but the bridge is safe and functional. What type of breach is this?

"Simple" Breach; does not allow the innocent party to terminate the contract or stop their performance. 

300

What can an owner do if all submitted bids exceed the budgeted price?

Reject all bids, revise the scope and start a new bidding process

400

What is fiduciary duty?

Duty to prioritize the interests of another party above one's personal interests

400

Provide an example of consideration given by the client and the consultant

Client - pay the consultant's fees and expenses; Consultant - perform the design work

400

A contractor demands that the client amends the contract or else face a long delay. What legal doctrine can a client use?

Duress - improper threat, pressure or intimidation used as a means of persuading a party to enter into a contract

400

When the principle of "quantum meruit" applies?

Applied when a party deserves payment for work done despite no valid or complete contract

400

What is a guarantee provided by a contractor to assure the owner that the contractor will enter into the contract if selected?

Bid Bond (issued by surety company)

500

What is an important contractual duty and also a Central Rule of Law in Canada?

Honesty

500

During tendering, how does an owner ensure a contractor's bid cannot be withdrawn?

Through Irrevocable Offer, which mean offer cannot be changed or withdrawn for a specified period

500

An engineer allows a contractor to submit a late report without penalty. Later, the engineer tries to enforce strict deadlines for that same contractor. What principle prevents this?

Equitable Estoppel (prevents a party from asserting a legal right or fact contrary to their past conduct)

500

What occurs when one party clearly indicates they do not intend to perform their obligations

Repudiation

500

What is bid shopping?

Disclosing a submitted bid to competing contractors as a negotiating tool

M
e
n
u