Exam 9: Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Dot sold her land to Seth.Three weeks before making the contract,she told Seth that the well on the property has a flow of 40 litres per minute.Dot had obtained the information from a certified water surveyor.Two months after taking title to the property,Seth discovered that the flow in the well was only 4 litres per minute.What remedy might Seth be entitled to from Dot?

The domination of one party over the mind of another to such a degree as to deprive the latter of the will to make an independent decision is

Define undue influence and distinguish undue influence from duress.

Why are loan transactions among the most heavily scrutinized consumer contracts? What protections are provided to consumers?

If a preliminary bargaining statement is expected to influence the decision of the other party,then it is said to be ___________ to the contract.

What must an innocent party to a contract show in order to rely on the defence of non est factum?

Exerting domination over the mind of another party so as to make him or her enter into a contract constitutes duress.

Linda took out a new auto insurance policy.She signed without reading each of the papers presented to her by the agent.What she didn't realize was that the insurance only covered accidents on "public roads." This term in no way was brought to her attention nor explained.A few days later she got into a serious accident in a large housing development where the roads had not as yet been turned over to the municipality.The insurance company refused to pay the claim.Can Linda get damages under misrepresentation?

Where the wrong words are inadvertently used by a party in stating the terms of a contract,resulting in a mistake,the contract will be binding on the party if it was reasonable for the other party to rely on the words used.

Where a party inadvertently uses the wrong words in stating the terms of a contract,and another party enters into the contract,the court may set aside the contract if a reasonable bystander would conclude that the party had made a mistake.

Use the fact situation in Q33 to answer the related question that follows. Referring to the above fact situation,in a lawsuit by Alice against Marvin,Alice will seek

What is the difference between a void and a voidable contract?

If rescission is unavailable in a case of innocent misrepresentation,and the misstatement was an important inducement,and the aggrieved party has suffered substantial loss,the court may look at the misrepresentation as

With the issue of undue influence,what must the victim do to shift the burden of proof to the dominant party?

When will the courts presume that there has been undue influence in the signing of a contract that favours the dominant party?

Contracts between parties of unequal bargaining power that are unfairly advantageous to the powerful parties have long been considered

If the parties disagree over what the words in a contract mean,the court will declare the contract void.

Regarding insurance contracts,utmost good faith is important because

In contract law,a mistake is

Explain the importance of independent legal advice.