Question 1
Caribbean Excavators just received a major contract and needs a special
drill to continue its operations so it orders one for $5,500 from Mining
Supplies Company which promptly ships it to Rapid Shippers which is the
shipping company that Caribbean Excavators is using. Caribbean Excavators tells
Rapid Shippers that it must receive the drill by June 16 or it will lose $12,000.
Rapid Shippers delays the shipment and ships the drill a week later and Caribbean
Excavators is forced to suspend
operations until the drill arrives. Caribbean
Excavators files a suit Rapid Shippers asking for compensatory, consequential, and punitive
damages.
A) Explain the three types of
damages that are specified in the case. (6 marks)
B) Will Caribbean Excavators get
all three damages that they are seeking? Explain why or why
not. (3 marks)
b)
Explain which types of damages they are most likely to be awarded,
clearly stating your
reasons for your answer. (6
marks)
(Total:
15 marks)
Question 2
Kerry’s son is
getting married so in preparation, she enters into a contract to buy 6 cases of
vintage wine from Golden Grapes Wine Co. for $1,100. The contract states that
delivery is to be made at Kerry's residence "on or before June 19, to be
used for the wedding reception on June 20." On June 19, Golden Grapes’
delivery van is involved in an accident but Golden Grapes does not inform Kerry.
On the morning of June 20, Jane buys the wine from the Vineyard Wine Co. That
afternoon, just before the reception begins, Golden Grapes delivers the wine to
Kerry's residence. She refuses to accept it so Golden Grapes Wine Co. sues her
for breach of contract.
A) Explain if there was a valid contract and if this was breached and by
whom. (7 marks)
B) How is the court most likely to
rule? Why? Explain clearly. (8
marks)
(Total: 15 marks)
Question 3
Quik Credit is a
financial institution that provides loans to persons for various reasons. Sonya
borrows $20,000 from them to buy a SUV. When she fails to repay the loan as
agreed, Quik Credit transfers the right to the payment to Rapid Collection
Agency which agrees to pay Quick Credit for this right, but for a price that is
less than the amount owed.
A) Identify and explain the type of
contractual arrangement that this transfer describes. (3 marks)
B) Can Quik Credit transfer this
right to Rapid Collection Agency without Sonya's consent?
(2
marks)
C) If Sonya disagrees with the
right being transferred, can she legitimately refuse to pay,
considering that she didn't borrow any money from Rapid Collection
Agency? Explain. (7 marks)
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