Exam 8: Factors Affecting the Contractual Relationship

Rescission of contract citing innocent misrepresentation on behalf of one of the parties is not available in four situations, list and describe these.

Outline the restrictions on the ability of a person to claim non est factum.

With regard to the law concerning misrepresentation, which of the following is true?

Explain what is meant by an "involuntary assignment."

Explain what is meant by rectification.

Len's new secretary came in and asked him to sign four letters that he said concerned general office matters. One of the "letters" was, in fact, a cheque for $500, payable to the secretary. The secretary cashed the cheque at his bank, and when his bank presented the cheque for payment, Len refused to pay it. He said he had been tricked and it was all a mistake. On these facts, which of the following is true?

In Rochdale Credit Union v. Barney, a lawyer persuaded his client to guarantee a loan. The relationship of solicitor/client leads to a presumption of

Explain what is meant by a collateral contract.

________ attempts to return both parties to their original positions. The subject matter of the contract must be returned to the original owner, and any monies paid under the contract must also be returned.

Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?

The victim of intentional misrepresentation can sue for damages but cannot ask for rescission.

Mr. Ho talked with Mr. Tarr, who ran a business called Roscali Roofing. Mr. Ho agreed to pay Tarr $250 for the repair of his roof. In time, Gene Fix, Tarr's employee, came to Mr. Ho's and worked on the roof. Fix used the wrong material in the repairs, which made all his effort worthless, and during the next rain the roof leaked as before. Which of the following is true?

What does it mean that an assignee is "subject to the equities"?

"A misrepresentation involves one person making a False statement of fact that misleads another and induces that person to enter into the contract." Discuss the accuracy of this statement.

The principle that contract terms apply only to the actual parties to the contract is known as ________.

In Works v. Works, what was the result where one party was mistaken about something significant in the contract?

The contract for an Oakville property had been signed by both parties. Which of the following is necessary for the contract to be set aside on the grounds of misrepresentation?

Indicate what must be present in order for an assignment to qualify as a statutory assignment.

What is the status of the doctrine of privity today?

The Weyburn Farmers' Co-op contracted to sell a carload of grain to Mr. Takemori for $2000. The co-op assigned, in writing, its contractual right to receive the $2000 to the Royal Bank, to which it was indebted. The Royal Bank gave written notice of the assignment to Takemori. Unknown to the buyer and the seller, at the time of the contract the grain had been destroyed because of a train derailment caused by the negligence of the train conductor. On these facts, which of the following is true?