Exam 8: Non-Enforcement of Contracts

When applying for life and disability insurance protection on her mortgage,Marabou neglected to disclose that she had been diagnosed with type 2 diabetes.As players in the commercial contractual area have a duty to look after their own interests,the insurance policy will be enforced should she become disabled or die as a result of the undisclosed pre-existing condition.

Which of the following might prove that a contract was freely entered into by the parties?

A judge has determined that offending portions of a contract can be severed and the remaining portions saved.What type of common law contractual infraction is this judge resolving?

Which of the following situations might give rise to a "voidable contract"?

Sanjip has elected to build up the earth around the cracked foundation of his home prior to listing the home for sale.Sanjip's action will not amount to misrepresentation if he fails to disclose the cracks to potential purchasers.

Only misrepresentations that were significant to the decision to enter into the contract are actionable.

Which of the following would be enforceable against a minor?

Why do the courts subject restrictive covenants in the employment context to greater scrutiny than those arising in the sale of a business?

A sales representative knowingly entered into a contract for an alarm system during a door-to-door sales campaign with an obviously mentally ill individual.Why could the contract be immediately rendered voidable at that individual customer's request?

Which of the following are competing goals that contract law attempts to balance when enforcing contracts?

What interests do the courts balance in deciding whether a noncompetition covenant,preventing an employee from leaving and going into competition with her former employer,is enforceable? What is the test applied by the courts?

Which of the following elements would a court consider when determining the enforceability of a non-competition clause on the grounds of reasonableness?

In the case of Bank of Montreal v.Duguid (2000),47 O.R.(3d)737 (C.A.),the court was asked to consider whether a wife who had signed a guarantee on a loan for her husband's business was entitled to be released from the guarantee on the basis of undue influence exerted by her husband.Why did the majority of the court find that the guarantee was enforceable against the wife?

How does Canadian contract law protect minors and mentally incapacitated individuals?

A seller unknowingly made a misrepresentation during negotiations to sell his car.Now that the seller is aware of the misrepresentation and the prospective buyer is returning to make an offer,what recourse is available to rectify the situation and accept the offer without risking an ensuing lawsuit?

The value in obtaining a certificate of independent legal advice is that it can help prove a contract was freely entered into.

The remedy of rescission is only available in the case of fraudulent or negligent misrepresentation.

What is the legal definition of "mistake"?

Which of the following are achieved through the law's enforcement of contracts?

What was the intended purpose of the creation and enactment of the Statute of Frauds?