The Case of Sail Labrador Ltd

question 121

Multiple Choice

The case of Sail Labrador Ltd. v. Challenger One (The) involved an option to purchase and a breach of a contract that was inconsequential and immediately corrected. What did the Supreme Court of Canada hold?

• A) The contract had been substantially performed and the option was still available.
• B) The breach, although minor, rendered the contract unenforceable.
• C) The breach, although minor, rendered the contract voidable at the option of the non-breaching party.
• D) The contract had not been perfectly performed, so the contract was void.
• E) No breach can be considered inconsequential at law.

---

Definitions:

Discontinued Segment

A part of a business that has been sold off, shut down, or is no longer operating as a distinct unit.

Trend Percentages

Analysis technique that involves calculating the percentage change for a financial statement item over a period of time to identify patterns or trends.

Cost of Goods Sold

The direct financial outlays involved in creating a company's goods for sale, encompassing labor and material costs.

Acid-Test Ratio

A stringent measure of liquidity that indicates a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.