Exam 5: Identity of Offeror and Offeree

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O and A wish to enter into a contract. However, A has lied to O about several matters. Which of the following untruths would render the contract voidable? Please select all that apply.

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A,B,C,D

O writes to A personally to order a special blend of coffee beans. Unbeknownst to O, A has died but C duly fulfils the order. Upon learning that C and not A supplied the beans, O refuses to pay C. The beans have been ground up to make coffee powder. Advise C.

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C

The Law Reform Committee accepted Devlin LJ's proposed reform that loss be apportioned between an original owner and a subsequent bona fide purchaser.

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False

Shogun Finance Ltd v Hudson is a decision which cannot be reconciled with any of the earlier authorities and should be treated as a special case on account of its facts.

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Where a rogue fraudulently obtains a car from the original owner and sells the car to a third party, in which of the following scenarios will bona fide purchase for value without notice be a defence against a claim by the original owner?

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R offers to buy a used bicycle from O. He gives O a name card which falsely indicates that he is a famous philanthropist. Based on the repute of that man, O agrees to accept a cheque for the bicycle, but it bounces when O attempts to cash it. The bicycle is later found in the possession of a bona fide purchaser A. What is the likely outcome should O sue A for the bicycle?

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How did the court in King's Norton Metal Co Ltd v Edridge, Merrett & Co Ltd distinguish the facts of that case from those of Cundy v Lindsay?

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The Law Reform Committee proposed that all mistakes of identity should make contracts voidable not void.

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