CH9 DISCUSSION

Questions for Critical Thinking

1. A contract is considered frustrated only in very unusual situa�ons. Should the doctrine of frustra�on be applied more o�en? Would a broader applica�on produce fairer results? What is the downside of such a change in commercial contracts?

2. Breach of a condi�on can signify the end of the contract, while breach of warranty does not. Should courts be allowed to exercise discre�onary power in determining whether an innominate term should have this same result? What should par�es do if they want to reduce the uncertainty as to how a given term will be classified?

3. The privity rule is one of the basic elements of contract law. Is it too restric�ve? On the other hand, is there a danger in crea�ng too many excep�ons to the rule?

4. Contract law is intended to facilitate commercial ac�vi�es and enable businesses to conduct their affairs so that their legal obliga�ons are certain. Do you think, a�er considering the material in the last five chapters, that contract law achieves its goals? Can you think of ways to improve the effec�veness of contract law?

5. The Supreme Court of Canada stated that mental distress damages for breach of contract can be awarded when an object of the contract was to secure a psychological benefit. What kinds of contracts can you think of that promise a psychological benefit?