Question 1

A separate contractual obligation that can stand alone, independent of the written contract, is known as ________.

Accepted Answer

a collater

Question 2

With regard to the law governing privity of contract and assignment, which of the following is False?

Accepted Answer

A)  The privity of contract rule states that only the parties to the contract have rights and obligations under the contract. 
B)  Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract. 
C)  A statutory assignment is easier to enforce than an equitable assignment. 
D)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
E)  Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
A)  The privity of contract rule states that only the parties to the contract have rights and obligations under the contract. 
B)  Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract. 
C)  A statutory assignment is easier to enforce than an equitable assignment. 
D)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
E)  Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.

Question 3

Misgana ran into Tarja at their local gym. Tarja, it turns out, operated an art gallery that did custom framing and mounting. Misgana had some beautiful prints she wanted to have put into special frames and agreed to pay Tarja $400 to have this done. Tarja passed the task along to her new assistant, Shandy. Shandy used the wrong adhesive when mounting the prints, which meant they did not stick properly to the backing. Which of the following is true?

Accepted Answer

A)  Misgana could successfully sue only Shandy or Tarja for breach of contract, whichever she chooses, but not both. 
B)  Misgana could successfully sue only Tarja for breach of contract. 
C)  Misgana could only sue Shandy because she is the one who did a poor job of the framing. 
D)  Misgana could successfully sue Shandy and Tarja for breach of contract because both were connected with the job. 
E)  If Tarja doesn't pay Shandy, Shandy could sue Misgana directly for her pay because she worked on Misgana's prints. 
A)  Misgana could successfully sue only Shandy or Tarja for breach of contract, whichever she chooses, but not both. 
B)  Misgana could successfully sue only Tarja for breach of contract. 
C)  Misgana could only sue Shandy because she is the one who did a poor job of the framing. 
D)  Misgana could successfully sue Shandy and Tarja for breach of contract because both were connected with the job. 
E)  If Tarja doesn't pay Shandy, Shandy could sue Misgana directly for her pay because she worked on Misgana's prints.

Question 4

Keri went to Crandon's computer outlet with her brother Paul, who was buying a laser printer. While she was waiting for him, she saw a poster saying the store was collecting funds for a special computer for a student recently disabled in an accident. The seller induced Paul to buy the model "X" printer by stating as a fact that the printer could interface with his iMac. Paul paid $400 for the printer. Also, Keri gave $15 to the student fund after the seller confirmed he was collecting for the student's computer. Later Paul and Keri learned that neither statement was true-the printer didn't work with Paul's computer and the store was doing nothing for the student-and that the seller didn't believe that either statement was true when he made them. On these facts, which of the following is true?

Accepted Answer

A)  Keri could sue for damages due to a misunderstanding. 
B)  Paul could sue for damages due to an innocent misrepresentation. 
C)  Paul could sue for rescission because of the misrepresentation. 
D)  The court would rescind Paul's contract only with proof that the seller knew his statement was False. 
E)  Only Keri has a remedy because she had been fraudulently misrepresented. 
A)  Keri could sue for damages due to a misunderstanding. 
B)  Paul could sue for damages due to an innocent misrepresentation. 
C)  Paul could sue for rescission because of the misrepresentation. 
D)  The court would rescind Paul's contract only with proof that the seller knew his statement was False. 
E)  Only Keri has a remedy because she had been fraudulently misrepresented.

Question 5

The original party cannot enforce a contract that bestows benefits on an outsider.

Accepted Answer

A) True 
 B)False

Question 6

In order to succeed in suing for a misrepresentation, that misrepresentation must have been in writing.

Accepted Answer

A) True 
 B)False

Question 7

In Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd., the defendant attempted to take advantage of a mistake made by the plaintiff. What did the Court hold?

Accepted Answer

A)  The defendant's conduct was sharp business, and the Court dismissed the plaintiff's claim. 
B)  The defendant's conduct was improper, but there is no remedy available to address such a mistake. 
C)  The defendant's conduct was equivalent to a fraud or a misrepresentation amounting to fraud, and the Court awarded damages in lieu of rectification. 
D)  The defendant's conduct was essentially a breach of a fiduciary duty and the Court ruled that the entire contract was void as a result. 
E)  The defendant's conduct was admirable and the Court ordered the plaintiff to pay costs. 
A)  The defendant's conduct was sharp business, and the Court dismissed the plaintiff's claim. 
B)  The defendant's conduct was improper, but there is no remedy available to address such a mistake. 
C)  The defendant's conduct was equivalent to a fraud or a misrepresentation amounting to fraud, and the Court awarded damages in lieu of rectification. 
D)  The defendant's conduct was essentially a breach of a fiduciary duty and the Court ruled that the entire contract was void as a result. 
E)  The defendant's conduct was admirable and the Court ordered the plaintiff to pay costs.

Question 8

Which of the following will have the likely consequence of the court finding the contract void on the grounds of mistake?

Accepted Answer

A)  Mr. Twigg carelessly signed a mortgage for $24,000, which he was told was a mortgage for only $14,000. This was assigned to Mr. Jones. 
B)  Mr. Ideer bought some property, erroneously thinking that the province was planning to put a highway nearby, even though the seller had never made any such suggestion. 
C)  The parties signed a document that stated the consideration as $1200 instead of the $1100 that the buyer and seller had contracted for, but the buyer cannot prove the terms of the original contract. 
D)  Mr. Ille, although using due care, signed a cheque for $100 in favour of his secretary, who had told him it was a receipt for money received. 
E)  Mr. Jones, without reliance on a salesperson, purchased an HTC smartphone, thinking it was actually a Samsung smartphone. 
A)  Mr. Twigg carelessly signed a mortgage for $24,000, which he was told was a mortgage for only $14,000. This was assigned to Mr. Jones. 
B)  Mr. Ideer bought some property, erroneously thinking that the province was planning to put a highway nearby, even though the seller had never made any such suggestion. 
C)  The parties signed a document that stated the consideration as $1200 instead of the $1100 that the buyer and seller had contracted for, but the buyer cannot prove the terms of the original contract. 
D)  Mr. Ille, although using due care, signed a cheque for $100 in favour of his secretary, who had told him it was a receipt for money received. 
E)  Mr. Jones, without reliance on a salesperson, purchased an HTC smartphone, thinking it was actually a Samsung smartphone.

Question 9

Gomer paid the seller of a car with a worthless cheque. He then sold the car to an innocent person who paid him good consideration. Gomer took the money and left the country. The original seller found out who had the car and wanted it back. Who is entitled to the car if the court holds that the contract between the original seller and Gomer is voidable?

Accepted Answer

A)  Original seller 
B)  Gomer 
C)  Innocent purchaser 
D)  The innocent purchaser, but he must pay damages to the original seller 
E)  The original seller, but he must pay compensation to the innocent party 
A)  Original seller 
B)  Gomer 
C)  Innocent purchaser 
D)  The innocent purchaser, but he must pay damages to the original seller 
E)  The original seller, but he must pay compensation to the innocent party

Question 10

When you went home for Thanksgiving dinner, your great aunt, now 80 years old, seemed very unhappy. You learned that she had just signed a contract to buy an expensive condominium in a retirement community. She had attended a real estate "seminar" with her friend. In trying to think of a way for her to get out from under this contract, you review mistake, duress, undue influence, and unconscionability. Which of the following is False?

Accepted Answer

A)  To avoid the contract on the basis of non est factum, she would have to prove, among other things, that she did not understand the nature of the document signed. 
B)  To avoid the contract on the basis of undue influence, she would have to show that she was improperly pressured by a trusted person in a dominant position. 
C)  To avoid the contract on the basis of duress, she would have to show that she was forced into signing the contract against her will by serious threats. 
D)  To avoid the contract on the basis of unconscionability, she would have to have evidence that the sellers of the property knowingly took advantage of their superior bargaining position and that the consideration was grossly unfair. 
E)  To avoid the contract on the basis of mistake, there is a presumption of mistake and she will automatically get out of the contract. 
A)  To avoid the contract on the basis of non est factum, she would have to prove, among other things, that she did not understand the nature of the document signed. 
B)  To avoid the contract on the basis of undue influence, she would have to show that she was improperly pressured by a trusted person in a dominant position. 
C)  To avoid the contract on the basis of duress, she would have to show that she was forced into signing the contract against her will by serious threats. 
D)  To avoid the contract on the basis of unconscionability, she would have to have evidence that the sellers of the property knowingly took advantage of their superior bargaining position and that the consideration was grossly unfair. 
E)  To avoid the contract on the basis of mistake, there is a presumption of mistake and she will automatically get out of the contract.

Question 11

With regard to the law governing privity of contract and assignment, which of the following is False?

Accepted Answer

A)  Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out in good faith to the first assignee to give him notice, he has no further obligation. 
B)  If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee, and the assignee must look to the assignor for payment. 
C)  A statutory assignment is easier to enforce than an equitable assignment. 
D)  An exception to the doctrine of privity of contract is a contract granting an interest in land. 
E)  Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
A)  Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out in good faith to the first assignee to give him notice, he has no further obligation. 
B)  If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee, and the assignee must look to the assignor for payment. 
C)  A statutory assignment is easier to enforce than an equitable assignment. 
D)  An exception to the doctrine of privity of contract is a contract granting an interest in land. 
E)  Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.

Question 12

Explain what remedies are available to the victim where misrepresentation becomes a term of the contract.

Accepted Answer

Normal contractual remedies, i

Question 13

The longer Adolph stayed on his job, the more he hated it. He thought his boss was too demanding. He especially disliked being reprimanded for being late. One afternoon, he was asked by a secretary to take a letter to his boss for his signature. His boss had had an eye operation and was recuperating at home. Adolph got two signatures, one on the letter and one on a note promising to pay Adolph $1000 in consideration for services rendered. His boss was not careless, but couldn't read the papers. What plea or argument, if any, could his boss use to avoid paying on the promissory note?

Accepted Answer

A)  Duress 
B)  Unconscionability 
C)  Shared mistake 
D)  Non est factum 
E)  Rectification 
A)  Duress 
B)  Unconscionability 
C)  Shared mistake 
D)  Non est factum 
E)  Rectification

Question 14

Indicate under which circumstances the remedy of rescission might not be available.

Accepted Answer

Rescission may not be available where th

Question 15

Explain what is meant by a novation.

Accepted Answer

A novation occurs where two parties have

Question 16

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Accepted Answer

A)  Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered. 
B)  The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question. 
C)  The defendant has a justifiable defence of non est factum. 
D)  A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement. 
E)  The contract is one requiring "utmost good faith." 
A)  Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered. 
B)  The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question. 
C)  The defendant has a justifiable defence of non est factum. 
D)  A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement. 
E)  The contract is one requiring "utmost good faith."

Question 17

Victims of misrepresentation who have affirmed the contract are bound by the affirmation and cannot later insist on

Accepted Answer

A)  rescission. 
B)  remedies. 
C)  breach. 
D)  original positions. 
E)  quantum meruit. 
A)  rescission. 
B)  remedies. 
C)  breach. 
D)  original positions. 
E)  quantum meruit.

Question 18

With respect to having the court set aside a contract on the basis of undue influence, which of the following is False?

Accepted Answer

A)  If a client transferred property to his lawyer and later claimed the transfer was due to undue influence, the law would presume the transfer was due to undue influence. 
B)  If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back. 
C)  A contract made in favour of a dominant person who exerted undue influence over the weaker party is voidable at the option of the weaker party. 
D)  If you are a dominant person in relation to an aged relative who wants to sell you his house below market value, you should insist that the aged relative receive independent legal advice. 
E)  Where undue influence is established, the resulting contract is voidable, not void. 
A)  If a client transferred property to his lawyer and later claimed the transfer was due to undue influence, the law would presume the transfer was due to undue influence. 
B)  If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back. 
C)  A contract made in favour of a dominant person who exerted undue influence over the weaker party is voidable at the option of the weaker party. 
D)  If you are a dominant person in relation to an aged relative who wants to sell you his house below market value, you should insist that the aged relative receive independent legal advice. 
E)  Where undue influence is established, the resulting contract is voidable, not void.

Question 19

A woman sought to set aside a mortgage on the grounds of misrepresentation, undue influence, and non est factum. She had been persuaded to enter into that mortgage contract with a mortgage company by her doctor. Which of the following is true with regard to these challenges to the mortgage contract?

Accepted Answer

A)  If she were influenced to sign the mortgage by her doctor and the mortgage benefited the doctor, the court would presume undue influence. 
B)  If she were influenced to sign the mortgage by her doctor and the court found undue influence, the mortgage would be void and she wouldn't have to pay the mortgage company. 
C)  If she failed to read the mortgage agreement, the mortgage would be void on the basis of non est factum. 
D)  If the person who misled her as to the contents of the mortgage agreement honestly thought what he was stating was correct, she could sue for only damages, not rescission. 
E)  If the court found that there was undue influence by her doctor, who obtained the money from the mortgage, she would not have to repay the mortgage company. 
A)  If she were influenced to sign the mortgage by her doctor and the mortgage benefited the doctor, the court would presume undue influence. 
B)  If she were influenced to sign the mortgage by her doctor and the court found undue influence, the mortgage would be void and she wouldn't have to pay the mortgage company. 
C)  If she failed to read the mortgage agreement, the mortgage would be void on the basis of non est factum. 
D)  If the person who misled her as to the contents of the mortgage agreement honestly thought what he was stating was correct, she could sue for only damages, not rescission. 
E)  If the court found that there was undue influence by her doctor, who obtained the money from the mortgage, she would not have to repay the mortgage company.

Question 20

Len was behind in his work at the office. He decided to go in for a few hours on Sunday to catch up. He asked an assistant to come in for four hours. He turned on his office TV. Just then his assistant came in and asked him to sign four letters that she said concerned general office matters. He carelessly signed them without taking his eyes off the TV screen. One of the "letters" was, in fact, a cheque for $500 payable to the assistant. The assistant cashed the cheque at her bank, and when her bank presented the cheque for payment, Len instructed his bank not to honour it. He said that he had been tricked and that his signing it was all a big mistake. On these facts, which of the following is true?

Accepted Answer

A)  Because Len did not know what he was signing, he cannot be held liable. 
B)  Len's carelessness in failing to read what he was signing will likely defeat any claim of non est factum. 
C)  Len could avoid his obligation on the cheque on the basis of duress. 
D)  Len could avoid his obligation on the cheque on the basis of unconscionability. 
E)  Undue influence would be his best defence on these facts. 
A)  Because Len did not know what he was signing, he cannot be held liable. 
B)  Len's carelessness in failing to read what he was signing will likely defeat any claim of non est factum. 
C)  Len could avoid his obligation on the cheque on the basis of duress. 
D)  Len could avoid his obligation on the cheque on the basis of unconscionability. 
E)  Undue influence would be his best defence on these facts.

A separate contractual obligation that can stand alone, independent of the written contract, is known as ________.

With regard to the law governing privity of contract and assignment, which of the following is False?

The original party cannot enforce a contract that bestows benefits on an outsider.

In order to succeed in suing for a misrepresentation, that misrepresentation must have been in writing.

In Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd., the defendant attempted to take advantage of a mistake made by the plaintiff. What did the Court hold?

Which of the following will have the likely consequence of the court finding the contract void on the grounds of mistake?

With regard to the law governing privity of contract and assignment, which of the following is False?

Explain what remedies are available to the victim where misrepresentation becomes a term of the contract.

Indicate under which circumstances the remedy of rescission might not be available.

Explain what is meant by a novation.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Victims of misrepresentation who have affirmed the contract are bound by the affirmation and cannot later insist on

With respect to having the court set aside a contract on the basis of undue influence, which of the following is False?

A woman sought to set aside a mortgage on the grounds of misrepresentation, undue influence, and non est factum. She had been persuaded to enter into that mortgage contract with a mortgage company by her doctor. Which of the following is true with regard to these challenges to the mortgage contract?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 8: Factors Affecting the Contractual Relationship

A separate contractual obligation that can stand alone, independent of the written contract, is known as ________.

With regard to the law governing privity of contract and assignment, which of the following is False?

The original party cannot enforce a contract that bestows benefits on an outsider.

In order to succeed in suing for a misrepresentation, that misrepresentation must have been in writing.

In Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd., the defendant attempted to take advantage of a mistake made by the plaintiff. What did the Court hold?

Which of the following will have the likely consequence of the court finding the contract void on the grounds of mistake?

With regard to the law governing privity of contract and assignment, which of the following is False?

Explain what remedies are available to the victim where misrepresentation becomes a term of the contract.

Indicate under which circumstances the remedy of rescission might not be available.

Explain what is meant by a novation.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Victims of misrepresentation who have affirmed the contract are bound by the affirmation and cannot later insist on

With respect to having the court set aside a contract on the basis of undue influence, which of the following is False?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters