Zenia contracts with Yvonne for a supply of specialized computer components worth $6,000, which she needs to meet a contract to supply Wendy with 60 laptop computers, a contract which is worth $65,000 to Zenia

Question

Zenia contracts with Yvonne for a supply of specialized computer components worth $6,000, which she needs to meet a contract to supply Wendy with 60 laptop computers, a contract which is worth $65,000 to Zenia. Zenia makes it clear to Yvonne that her contract with Wendy is vital to let her get established in the market and that it is imperative that Yvonne meet the deadline. "If you can't," she says, "I'll take the business to someone who can." Yvonne wants the business badly, so, against her better judgment, she agrees to a clause in the contract which says that, for every day delivery is late, she will pay Zenia $10,000.

Question 4 options:

	This is a liquidated damages clause and it will be enforceable against Yvonne
	Since Yvonne was under duress to sign this contract, the court will not enforce the clause, although under normal circumstances they would.
	Because liquidated damages clauses are against public policy, Zenia will not be able to enforce this clause if Yvonne is late performing
	This is a penalty clause and the court will refuse to enforce it.
	Although the court would not normally enforce this clause, since Yvonne was aware of the vital importance in this case of prompt delivery, the court will uphold the clause if she is late delivering.

Question 5 (1 point)

Thomas’ prom is tonight at 8 pm in downtown Toronto. He hires First Rate Limos to pick him up in a black, super-stretch, Navigator Limo and take him to the prom. They are to pick Thomas up at 7pm tonight. The fee for the service is $500. First Rate Limos is running late. They get to Thomas’ house at 7:30 and don’t get him to the prom until 8:25. Thomas is furious and refuses to pay. Which of the following is correct?

Question 5 options:

	a. First Rate Limos breached the contract and is not entitled to any payment
	b. Thomas need not pay and he is entitled to another free Limo ride
	c. Thomas is required to pay the full amount as he was still picked up and delivered to the prom
	d. Thomas is required to pay, but would be entitled to a deduction in the fee
	e. Both a and b
	f. none of the above

Question 6 (1 point)

Thomas’ prom is tonight at 8 pm in downtown Toronto. He hires First Rate Limos to pick him up in a black, super-stretch, Navigator Limo and take him to the prom. They are to pick Thomas up at 7pm tonight. The fee for the service is $500. First Rate Limos arrives on time but delivers a Red Honda Civic. Thomas is furious and refuses to pay. Which of the following is correct?

Question 6 options:

	a. First Rate Limos breached the contract and is not entitled to any payment
	b. Thomas need not pay and he is entitled to another free Limo ride
	c. Thomas is required to pay the full amount as he was still picked up and delivered to the prom
	d. Thomas is required to pay, but would be entitled to a deduction in the fee
	e. First Rate Limos breached a Warranty in the contract and Thomas need not pay
	f. none of the above

Question 7 (1 point)

Thomas’ prom is tonight at 8 pm in downtown Toronto. He hires First Rate Limos to pick him up in a black, super-stretch, Navigator Limo and take him to the prom. They are to pick Thomas up at 7pm tonight. The fee for the service is $500. First Rate Limos is on time. However, they deliver a charcoal grey super stretch Navigator Limo. Thomas is furious and refuses to pay. Which of the following is correct?

Question 7 options:

	First Rate Limos breached the contract and is not entitled to any payment
	Thomas need not pay and he is entitled to another free Limo ride
	Thomas is required to pay the full amount as he was still picked up and delivered to the prom
	Thomas is required to pay, but would be entitled to a deduction in the fee
	First Rate Limos Breached a Condition in the contract and does not need to be paid.
	none of the above