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.


  1. A) Explain the three types of damages that are specified in the case.                               (6 marks)


  1. B) Will Caribbean Excavators get all three damages that they are seeking? Explain why or why

not.                                                                                                                                (3 marks)


  1. 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.

  1. A) Explain if there was a valid contract and if this was breached and by whom.             (7 marks)
  2. 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.

  1. A) Identify and explain the type of contractual arrangement that this transfer describes. (3 marks)


  1. B) Can Quik Credit transfer this right to Rapid Collection Agency without Sonya’s consent?

(2 marks)


  1. 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)


  1. D) Can she still continue paying to Quik Credit instead? Explain clearly.                           (3 marks)