Analysis of legal contract and issues in Compact and International Tire Inc. case study

Part one - Validity and Breach of Contract (50 Marks)

Questions for analysis

Part one (total 50 marks)

1. Is there a valid contract between Compact and International Tire Inc.?  Explain fully with specific reference to the key elements. (10 marks)

2. Assuming that there is a valid Contract, was the contract breached?  Which party (or parties) breached the contract?  How specifically was the contract breached?  At what point in time could legal action be started by each party that you have identified as breaching the contract? (10 marks)

3. How would the court approach the question of damages relating to the Compact and International Tire Inc. contract?  What factors would be considered?  (10 marks)

4. Is there a valid contract between Compact and American Tire Corporation?  Will Compact be able to successfully bill American Tire Corporation for $100,000 per year?  What arguments can Compact bring forward?  Will it be successful? (8 marks)

5. Does Shawna have any action that she can take against Compact?  What steps can she take (assuming her parents let her out of the house)?  Will she be successful?  In a court action, who would be the plaintiff and who would be the defendant?  (6 marks)

6.Can Shady successfully sue Compact in court for the return of his money based on the fact that the software did not work?  Why, or why not? (6 marks)

Part Two (Total 60 Marks)

1. Define “Passing off" and describe how it is an issue in this case. Who is the defendant? Who is the Plaintiff? What remedies would be available? What specific losses would be addressed? (10 marks)

2. What is interference with contractual relations and how is it relevant in this case? Who is the plaintiff and who is the defendant? What are the facts that support a possible claim? What remedies would be available in this situation?  (8 marks)

3. Describe how defamation is an issue in this case. What specific form of defamation occurred? Who is the plaintiff and who is the defendant? Which defenses, if any, would be available to Sidney and Nancy? What would be the most probable outcome (remedy) and why. (8 marks)

4. Is the restrictive covenant (non-competition clause) that Sidney and Nancy signed with National one that would be enforced by the courts? Explain your answer thoroughly.  (10 marks)

5. Explain how trespass is an issue in this case from Compact’s perspective? Who is the trespasser?  If an action for trespass is commenced, who would be the plaintiff and who would be the defendant? What would be the most probable outcome (remedy) and why.  (8 marks)

6. Do the trespasser(s) that you identified in question 5 above have any action against Compact?  Who would be the plaintiff(s) and on what basis?  Who would be the defendant(s)?  Please explain your answer thoroughly.  (6 marks)

7. Describe the steps taken by Sid and Nancy immediately prior to the bankruptcy that may be offences under the Bankruptcy and Insolvency Act.  What is the legal term used to describe each of these steps (events)?  (4 marks)

8. Does Lucky Accounting have a potential cause of action against Compact?  If so, what type of action (give its legal name) would Lucky pursue?  Explain the cause of action and whether or not they might be successful.  If Lucky was successful, what would be the most probable outcome (remedy) and why. (6 marks)