Contracts Final Facts

Question 1

Redgrave v Hurd

Answer 1

Redgrave advertised selling his business premises and a share in his business representing that he made a certain amount. H bought this and then learned the practice was worthless and refused to complete his payments.

Question 2

Bank of British Columbia v Wren Developments

Answer 2

Two company directors (S&A) wanted a loan, put shares that one of them owned as collateral, S had the bank cash the shares without A knowing, bank claimed balance in place of collateral from A

Question 3

Kupchak v Dayson

Answer 3

K had a mortgage from D, K stopped making payments because they discovered past earnings were false, D unsuccessfully tried to foreclose on K, K commenced action against D for rescission.

Question 4

Helibut, Symons & Co v Buckleton

Answer 4

An agent of B bought shares from H twice on the representation that it was a “rubber company”, company turned out to be sour, brought an action for breach of warranty

Question 5

Dick Bentley Productions Ltd v Harold Smith (Motors)

Answer 5

B bought car from S relying on representation that it had only travelled 20k miles, after the purchase it was clear it was more than that and more repairs were needed. Action for breach of warranty.

Question 6

BG Checho International Ltd v British Columbia Hydro & Power Authority

Answer 6

BG successfully bid to build for BC, contract said BC would clear land first, they didn’t and BG couldn’t do the work.

Question 7

Harwish v Bank of Montreal

Answer 7

P signed a guarantee for the indebtedness and liability of a new company, was told by bank manager it would only be for X amount until they got a guarantee from directors. They got it, company goes bankrupt, bank goes after P

Question 8

Bauer v Bank of Montreal

Answer 8

Bank didn’t properly register interest in collateral, B’s company went bankrupt and because it didn’t register it was not a preferred creditor. Clause in the contract that said bank had right not to register.

Question 9

J Evans & Sons (Portsmout) Ltd v Merzario (Andrea) Ltd

Answer 9

J imported machines from Italy to England, M were their forwarding agents. In a contract between parties M had complete freedom regarding the transport. M proposed a change in transport method orally, not put in writing, promised they would put them below deck. Kept them above deck and one machine was lost at sea.

Question 10

Gallen v Allstate Grain Co

Answer 10

Farmers told by D that buckwheat would kill weeds (orally). Farmers bought it based on this and it didn’t work. Want the statements used at trial.

Question 11

Greater Fredericton Airport Authority Inc v Nav Canada

Answer 11

Parties to an agreement, G requested N extend the runway, rather than relocate equipment N wanted to replace it. G said N should pay for it and N said it wouldn’t get it unless G agreed to pay the acquisition cost. G wrote to N saying they would pay “under protest” N did it and G refused to pay.

Question 12

Geffen v Goodman Estate

Answer 12

GO had mental health issues, her mom knew she would need help after she died, gave property to GO, her brothers thought she would not take care of the estate. Sent her to a lawyer who set up a trust in her brothers names and they got it after she died. GO son was not happy with this, claimed undue influence.

Question 13

Morrison v Coast Finance Ltd

Answer 13

M, an old widow, persuaded by 2 men to borrow money from C and to lend it to them. The 2 men failed to pay it back and M commenced an action to have the mortgage set aside.

Question 14

Lloyds Bank v Bundy

Answer 14

B owned a house, son asked him for collateral for a loan from L, father signed original collateral for smaller amount, son needed more B had to put house as collateral, L said it was the only thing he could do to help his son, B signed. Son went bankrupt, they seized the house, B refused to leave, L suing for eviction.

Question 15

KRG Insurance Brokers (Western) Inc v Shafron

Answer 15

S employed by K, left K to work for competitor, K commenced action to enforce restrictive covenant that S signed saying he would not for 3 years after leaving be affiliated at all with insurance brokerage in the Metropolitan City of Vancouver.

Question 16

Still v Minister of National Revenue

Answer 16

S was a visitor (documented) to Canada with the intention of becoming a permanent resident. On the record it said she could work in Canada, S believed that meant she could apply for a job and became a housekeeper, then granted permanent residency. S laid off and denied unemployment status saying her employment contract was illegal and invalid before she became a resident.

Question 17

Paradine v Jane

Answer 17

P sued J for 3 years unpaid rent, J claims didn’t pay rent because of an invasion forcing her out of possession of the property and was unable to profit. J says contract was frustrated.

Question 18

Taylor v Caldwell

Answer 18

T contracted with C to use their music hall, before the performance, through no fault of either party, the hall burned down. T sued for breach of contract.

Question 19

Atlantic Paper Stock Ltd v St. Anne-Nackawic Pulp & Paper Co

Answer 19

S signed an agreement with A to be supplied with a minimum of 10k tons of paper waster per year for 10 years. Clause saying if there was non-availability of markets they could not accept it anymore. They stopped accepting.

Question 20

R v Ron Engineering & Construction (Eastern) Ltd

Answer 20

Call for tenders with a deposit of $150k if tender was withdrawn. Ron submitting an offer at a price far lower than intended, they made a mistake calculating total bid. They told the owner of the mistake and tried to have the offer changed, which the owner refused. Contract given to another company and deposit kept.

Question 21

Great Peace Shipping v Tsavliris Salvage

Answer 21

T hires G to save a stranded ship, contract says T has an option of a 5 day cancellation fee. G further away than T thought so T cancels but refuses to pay fee saying contract void due to common mistake.

Question 22

Miller Paving Ltd v B Gottardo Construction Ltd

Answer 22

M contracted to supply materials to B for a highway extension. M and B signed a release doc stating B had paid in full. M later found it forgot to bill for $500k and sent invoices. G refused to pay and M claims common mistake.

Question 23

Shotgun Finance Ltd v Hudson

Answer 23

Rogue dishonestly got ID from someone, buys a car from S and sells it to H as the stolen ID then vanished. S claimed the car or its value from H.

Question 24

Marvco Color Research Ltd v Harris

Answer 24

H mortgaged from M based entirely on assurances of his son-in-law that the documents being signed were just to correct a minor discrepancy. H didn’t read before signing. H sought to avoid liability due to fraudulent misrepresentation from son-in-law

Question 25

Sylvan Lake Golf and Tennis Club Ltd v Performance Industries Ltd

Answer 25

Parties orally agreed P would buy S’s land, P thought it was for 2 rows of houses and S thought it was 1. Written agreement drafter by P’s lawyer who wrote 2. Contract looked at 5 years later when building was supposed to happen. S refused to let P build

Question 26

Smith v Land and House Prop Corp

Answer 26

L contracted with S to buy the title of a hotel. S had advertised that it was let to F a “very desirable tenant”. F who was overdue on rent went bankrupt just before the transfer of title. L refused to complete the transaction on the basis of the description of F being grounds for misrepresentation.

Question 27

Heart v O’Connor

Answer 27

O sold a farm to H. O was very old and of unsound mind, H did not know this and was fair in negotiations. H occupied and improved the land. O’s brother sought to set aside the contract.