The Case of Sail Labrador Ltd

question 9

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

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Definitions:

Indirect Costs

Expenses not directly tied to a specific product, service, project, or activity, typically including utilities, rent, and administrative salaries.

Cost Object

Any item for which costs are measured and assigned, including products, services, projects, activities, or customers.

Cost Object

Any item for which costs are separately measured and tracked, such as products, services, projects, or customers.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.