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?

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