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.

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Definitions:

Commercial Fishing Boat

A vessel used for catching fish commercially for profit, often equipped with specialized fishing gear.

New Stock

New stock refers to shares that a company issues to the public for the first time, typically through an initial public offering (IPO) to raise capital.

Earnings After Tax

The net income a company retains after deducting all its expenses, including taxes, highlighting its profitability.

Deferred Taxes

Taxes owed that are not paid at the current time but are instead deferred to be paid in the future.