Question 1

Which one of the following mistakes voids a contract?

Accepted Answer

A)  Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. 
B)  Sally and Wacky had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was Sally's. 
C)  Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900. 
D)  Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient. 
E)  When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat. 
A)  Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. 
B)  Sally and Wacky had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was Sally's. 
C)  Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900. 
D)  Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient. 
E)  When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat.

Question 2

In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?

Accepted Answer

A)  The Court refused to grant an equitable remedy to correct a mistake that the businessman himself had allowed. 
B)  The Court held that the contract was void due to a lack of consensus. 
C)  The Court held that the contract was unenforceable due to a lack of consensus. 
D)  The Court ordered rectification to correct the mistake in the contract. 
E)  The Court ordered severance due to a lack of intention to be bound to the particular provision. 
A)  The Court refused to grant an equitable remedy to correct a mistake that the businessman himself had allowed. 
B)  The Court held that the contract was void due to a lack of consensus. 
C)  The Court held that the contract was unenforceable due to a lack of consensus. 
D)  The Court ordered rectification to correct the mistake in the contract. 
E)  The Court ordered severance due to a lack of intention to be bound to the particular provision.

Question 3

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is False with regard to the law of contracts?

Accepted Answer

A)  Assignments are modifications of the Privity of Contract Rule, since they do allow a stranger to the contract to receive benefits from the contract. 
B)  An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
C)  The assignee for value of a negotiable instrument may acquire better rights than the assignor had. 
D)  A statutory assignment is easier to enforce than an equitable assignment. 
E)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
A)  Assignments are modifications of the Privity of Contract Rule, since they do allow a stranger to the contract to receive benefits from the contract. 
B)  An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
C)  The assignee for value of a negotiable instrument may acquire better rights than the assignor had. 
D)  A statutory assignment is easier to enforce than an equitable assignment. 
E)  A party to a contract for services can assign both his contractual obligations and his contractual rights.

Question 5

The court will not allow the careless party to escape responsibility when a shared mistake is the result of the negligence of one of the parties.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the development and importance of the principle of unconscionable contracts. In your answer compare unconscionability to insanity, duress, and undue influence.

Accepted Answer

Unconscionable contracts are a relativel

Question 7

Discuss the signs that the doctrine of privity may be breaking down. In your discussion, include a reference to the leading cases in this area.

Accepted Answer

Case law, especially some recent Supreme

Question 8

Privity of contract applies in which of the following situations?

Accepted Answer

A)  Where an interest in land is involved 
B)  Where a trust is involved 
C)  Where an insurance contract is involved 
D)  Where goods are being sold 
E)  Where a trust has been created 
A)  Where an interest in land is involved 
B)  Where a trust is involved 
C)  Where an insurance contract is involved 
D)  Where goods are being sold 
E)  Where a trust has been created

Question 9

Explain the impact of the principle of privity of contracts.

Accepted Answer

When two people enter into a c

Question 10

The purpose of contract law is to give effect to the reasonable expectations of the parties to an agreement.

Accepted Answer

A) True 
 B)False

Question 11

When there is clear evidence that both parties agreed to something different than what was in the written document, the courts will rectify the document.

Accepted Answer

A) True 
 B)False

Question 12

A unilateral mistake refers to a breach of a unilateral contract.

Accepted Answer

A) True 
 B)False

Question 13

Explain what is meant by a "trust."

Accepted Answer

It is a principle from the law

Question 14

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

Accepted Answer

A)  Barry and Mary contracted for the sale and purchase of a boat for the price of $1200. When the contract was written up, the price was incorrectly stated as $1700. 
B)  Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract the ship had sunk and the fish had been lost. 
C)  Carson and Leno had a serious misunderstanding about a term in the contract and the court found that the more reasonable interpretation was that of Leno. 
D)  Sarah bought three rolls of wallpaper, but found she had made a mistake, since two would have been sufficient. 
E)  Although the seller said nothing to the buyer about the characteristics of the answering machine, the buyer bought it, thinking that it would tell him the date and time of the call. Later, he learned that it did not perform this function. 
A)  Barry and Mary contracted for the sale and purchase of a boat for the price of $1200. When the contract was written up, the price was incorrectly stated as $1700. 
B)  Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract the ship had sunk and the fish had been lost. 
C)  Carson and Leno had a serious misunderstanding about a term in the contract and the court found that the more reasonable interpretation was that of Leno. 
D)  Sarah bought three rolls of wallpaper, but found she had made a mistake, since two would have been sufficient. 
E)  Although the seller said nothing to the buyer about the characteristics of the answering machine, the buyer bought it, thinking that it would tell him the date and time of the call. Later, he learned that it did not perform this function.

Question 15

The thing or benefit (such as a claim or the right to sue) that is transferred in an assignment is known as ________.

Accepted Answer

The answer of The thing or benefit (such as a...

Question 16

Privity of contract is a principle that holds that a contract can only affect the immediate parties to it.

Accepted Answer

A) True 
 B)False

Question 17

Often a party to a contract wants to avoid his obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress. Which of the following is False with regard to these areas of the law?

Accepted Answer

A)  A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his misrepresentation, which persuaded the buyer to buy, was true. 
B)  If a seller persuades a person to buy something by a fraudulent misrepresentation, the buyer could ask for rescission and/or damages for the tort of deceit. 
C)  A person can successfully argue non est factum and avoid his obligations under a contract only if he was misled about the very nature of the document and was not careless. 
D)  Independent legal advice given to a person who wants to give a gift to a dominant person (e.g., his doctor) is good evidence to rebut a presumption of undue influence. 
E)  Where, because of a mistake, a written document does not embody the unchanged term of the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification. 
A)  A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his misrepresentation, which persuaded the buyer to buy, was true. 
B)  If a seller persuades a person to buy something by a fraudulent misrepresentation, the buyer could ask for rescission and/or damages for the tort of deceit. 
C)  A person can successfully argue non est factum and avoid his obligations under a contract only if he was misled about the very nature of the document and was not careless. 
D)  Independent legal advice given to a person who wants to give a gift to a dominant person (e.g., his doctor) is good evidence to rebut a presumption of undue influence. 
E)  Where, because of a mistake, a written document does not embody the unchanged term of the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification.

Question 18

"Joe received a cheque from Sam for work he had done painting Sam's house, and Joe passed that cheque onto Harry. Harry took it, not knowing that the work done was defective. Because of the principle that an assignee of contractual rights is in no better position than an assignor, Harry would not be able to demand payment on that cheque from Sam." Discuss the accuracy of this statement.

Accepted Answer

It is incorrect. Negotiable instruments

Question 19

Explain what is meant by a "chose in action."

Accepted Answer

The thing or benefit that is t

Question 20

The doctrine of privity of contract is unique in that is has no exceptions.

Accepted Answer

A) True 
 B)False

Which one of the following mistakes voids a contract?

In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Which of the following is False with regard to the law of contracts?

The court will not allow the careless party to escape responsibility when a shared mistake is the result of the negligence of one of the parties.

Discuss the development and importance of the principle of unconscionable contracts. In your answer compare unconscionability to insanity, duress, and undue influence.

Discuss the signs that the doctrine of privity may be breaking down. In your discussion, include a reference to the leading cases in this area.

Privity of contract applies in which of the following situations?

Explain the impact of the principle of privity of contracts.

The purpose of contract law is to give effect to the reasonable expectations of the parties to an agreement.

When there is clear evidence that both parties agreed to something different than what was in the written document, the courts will rectify the document.

A unilateral mistake refers to a breach of a unilateral contract.

Explain what is meant by a "trust."

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

The thing or benefit (such as a claim or the right to sue) that is transferred in an assignment is known as ________.

Privity of contract is a principle that holds that a contract can only affect the immediate parties to it.

Often a party to a contract wants to avoid his obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress. Which of the following is False with regard to these areas of the law?

Explain what is meant by a "chose in action."

The doctrine of privity of contract is unique in that is has no exceptions.

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

Which one of the following mistakes voids a contract?

In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Which of the following is False with regard to the law of contracts?

The court will not allow the careless party to escape responsibility when a shared mistake is the result of the negligence of one of the parties.

Discuss the development and importance of the principle of unconscionable contracts. In your answer compare unconscionability to insanity, duress, and undue influence.

Discuss the signs that the doctrine of privity may be breaking down. In your discussion, include a reference to the leading cases in this area.

Privity of contract applies in which of the following situations?

Explain the impact of the principle of privity of contracts.

The purpose of contract law is to give effect to the reasonable expectations of the parties to an agreement.

When there is clear evidence that both parties agreed to something different than what was in the written document, the courts will rectify the document.

A unilateral mistake refers to a breach of a unilateral contract.

Explain what is meant by a "trust."

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

The thing or benefit (such as a claim or the right to sue) that is transferred in an assignment is known as ________.

Privity of contract is a principle that holds that a contract can only affect the immediate parties to it.

Often a party to a contract wants to avoid his obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress. Which of the following is False with regard to these areas of the law?

Explain what is meant by a "chose in action."

The doctrine of privity of contract is unique in that is has no exceptions.

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