Exam 11: Failure to Create an Enforceable Contract

A tort that arises when a party suffers damage by acting upon a false representation made by a party, with the intention of deceiving the other is called

While George was visiting his physician, he mentioned to him that he wished to sell his expensive sailboat. The physician expressed an interest in buying the boat and offered to pay George $10,000 for it. George had intended to advertise the boat for $12,000 in the local newspaper but agreed to sell it to the physician for $10,000. Some weeks after the boat had been sold; George wished to avoid the contract. George may raise the claim of undue influence in an attempt to recover the sailboat.

Trent purchased a car from Veritas Motors. The sales agent stated that the car was new, although, in fact, it had been used as a demonstrator for three weeks. Two days after the purchase was completed, Trent learned that the car had previously been in an accident while a customer was test driving it. The sales agent had known all of this but had not informed Trent of it. Two weeks later, a problem arose with the brakes, which necessitated repairs on three occasions. After the first repair, Trent wrote to Veritas claiming rescission of the contract and asked for a refund of his payment. Veritas refused. Two months later, Trent sued Veritas for rescission of the contract and damages equal to the amount he had spent on the car.

Brianne discovered that her younger sister, Alda, desperate to break her addiction to cocaine and unable to get into a Canadian addiction program for many months, has made a contract with a doctor from the U.S.A. The doctor will treat at his centre immediately, in return for which Alda has signed over to him the inheritance from her grandmother to which she will have access when she turns 22 next year. Since the cost of the treatment is only a fraction of the value of Alda's inheritance, Brianne promises to pay for the treatment if Alda can reimburse her next year. However, the doctor refuses to release Alda from their contract, and she does not know what to do.

While George was visiting his physician, he mentioned to him that he wished to sell his expensive sailboat. The physician expressed an interest in buying the boat and offered to pay George $10,000 for it. George had intended to advertise the boat for $12,000 in the local newspaper but agreed to sell it to the physician for $10,000. Some weeks after the boat had been sold; George wished to avoid the contract. The physician could rebut the presumption of undue influence by proving that he paid a reasonable price for the sailboat, and that George had freely offered to sell him the boat.

Fraudulent misrepresentation renders a contract void ab initio.

A met B while shopping, and in the course of conversation, mentioned that he had a motorcycle for sale. B was familiar with A's motorcycle and offered to purchase it for $500. A accepted the offer, and A and B walked to A's home to get the motorcycle. When they reached A's house, they were told by A's father that the motorcycle had been stolen earlier in the day and was subsequently found by the police in a badly damaged and burned condition in a local stone quarry. B is bound in contract and must purchase the motorcycle even though it is badly damaged.

Wes, a neighbour of Stan, wished to borrow a sum of money from a local bank. Stan was quite wealthy, but elderly, with very poor eyesight. He frequently requested Wes to read his newspaper to him when Wes would drop by for a visit, because reading bothered his eyes. One evening, Wes placed a paper before Stan, and explained to him that he wished to borrow a sum of money but required a letter of reference before the bank would make the loan. He requested Stan to sign the paper to satisfy this requirement. Stan trusted his friend Wes and signed the paper at his request without reading it. Unknown to Stan, the paper was a guarantee of Wes's indebtedness, and not a letter of reference. Wes later defaulted on his debt. Wes required Stan's signature on the paper because the Statute of Frauds requires a guarantee to be in writing, and signed by the guarantor to be enforceable.

Bev and Renee moved to a large farm they recently purchased. The couple wish to subdivide some of the land and sell a lot. They contracted a local surveyor who completed the survey of the prospective lot to be severed. After the deal had been completed and the lot sold, the couple was confronted by the new lot owner, and a neighbour of the couple. They produced an older deed showing the newly severed lot belonged to the neighbour's farm and did not belong to Bev and Renee. With the threat of legal action looming, the couple confronted the surveyor who told them they cannot sue him because he is an unlicensed professional and is free from any responsibility for the services he renders.

Sarah Burns is suing her lawyer, Tom Lachey, for the return of property worth $20,000 that she had given him. She had signed a properly sealed document making the gift to him. She says she knew what she was signing but felt overwhelmed by his manner. It is up to Tom Lachey, under these circumstances to prove that he did not unduly influence Sarah Burns, if she simply alleges that he did.

Sarah Burns is suing her lawyer, Tom Lachey, for the return of property worth $20,000 that she had given him. She had signed a properly sealed document making the gift to him. She says she knew what she was signing but felt overwhelmed by his manner. If Sarah Burns had not yet given him the property, she would not be obligated to do so since it was simply a gratuitous promise on her part. Since she has given it to him, she must prove duress on his part to get it back.

Innocent misrepresentation renders a contract voidable at the option of either party.

Your car dealer hands you documents for your signature, "the paperwork on the deal" you have just shaken hands on. Among the papers is an undiscussed extended warranty plan. You sign all the documents where the dealer so indicated. You first become aware of the warranty when its cost is automatically debited from your chequing account. Your successful defence to further payments will be non est factum.

A met B while shopping, and in the course of conversation, mentioned that he had a motorcycle for sale. B was familiar with A's motorcycle and offered to purchase it for $500. A accepted the offer and A and B walked to A's home to get the motorcycle. When they reached A's house, they were told by A's father that the motorcycle had been stolen earlier in the day and was subsequently found by the police in a badly damaged and burned condition in a local stone quarry. A and B made a valid contract, and A must deliver to B the motorcycle in the condition that it was in before it was stolen.

Sarah Burns is suing her lawyer, Tom Lachey, for the return of property worth $20,000 that she had given him. She had signed a properly sealed document making the gift to him. She says she knew what she was signing but felt overwhelmed by his manner. If Sarah Burns is married to Tom Lachey, she cannot sue him for undue influence.

. Red Stripe replied saying the $4 price is in Canadian currency, not Jamaican currency. When a contract does not specify the currency but only contains the $ symbol, the contract