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QUESTION 1 A breach can have the effect of terminating a contract. O True False QUESTION 2 A creditor has assigned a debt to a collection agency. As an assignee, the collection agency is not a party to the original contract and is therefore barred under the doctrine of privity from acquiring any rights to own the debt under it. True False QUESTION 3 A court has refused to order specific performance owing to the effects it would have on a third party. What would the defendant's lawyer most likely identify as the circumstances that gave rise to the court's refusal? a. improper delay on the part of the defendant b. improper imposition of severe hardship c. the impossibility to enforce an employment contract d. improper behaviour on the part of the defendant QUESTION 4 A lawyer was negligent in his duties, causing his client to lose her entitlement to ongoing support she needed and was legally entitled to receive. The error remained unresolved, and the client, unable to meet her mortgage commitments, went into foreclosure six months later. In these circumstances, why would the client's new lawyer commence an action including the damages relating to the foreclosure? a. There was no exclusion clause in the retainer agreement. b. They are a special consequence of the breach. c. They are a natural consequence of the breach. d. The degree of suffering is sufficient to warrant compensation. QUESTION 5 A party to a contract erroneously acted on an assumption involving breach of an innominate term. That party is itself now being sued for breach. What was the erroneous action taken by this party? a. the repudiation of the contract b. the initiation of a claim for damages c. an incorrect application of a warranty d. a delay of performance of obligations