Humber/Ontario Real Estate Course 1 Exam Practice

Which scenario is NOT a breach of contract?

1. A buyer fails to close the sale and the seller is forced to resell the property to someone else.

2. A buyer requests an extension of the closing date and the seller does not want to extend the date, but finally agrees in writing to do so.

3. A homeowner signs an agreement to build a house, but the builder starts the work and then fails to complete the job.

4. An experienced chef sells his restaurant and agrees not to open another within 20 kilometers, but does so shortly after the sale.

The correct answer is: A buyer requests an extension of the closing date and the seller does not want to extend the date, but finally agrees in writing to do so.

In the scenario described in option B, the buyer requesting an extension of the closing date, and the seller eventually agreeing in writing to do so, does not constitute a breach of contract. In contract law, when both parties agree to a modification of the terms, such as the closing date in this case, and formalize the change in writing, it becomes a valid amendment to the contract. As long as the new agreement is documented and both parties adhere to the revised terms, no breach of contract has occurred. On the other hand, options A, C, and D all involve clear breaches of contract. In option A, the buyer failing to close the sale, leading to the seller having to resell the property, constitutes a breach. In option C, the builder starting the work and then failing to complete the job after signing the agreement is also a breach of contract. Finally, in option D, the experienced chef selling his restaurant and then opening a new one within the agreed-upon radius shortly after the sale violates the non-compete clause, thus constituting a breach of contract. Each of these scenarios involves a party not fulfilling their obligations as agreed upon in the contract.