Exam 4: Enforcing Contractual Obligations

If Jones receives a promissory note from Smith and passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

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

What is the effect of a court determining that undue influence has been present in a contractual relationship?

Len's new secretary asked him to sign four letters that she 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 her bank, and when her 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?

The longer Adolph stayed on this job, the more he hated it.He thought the 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 the boss for his signature.The 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.The boss was not careless, but couldn't read the papers.What plea or argument, if any, could the boss use to avoid paying on the promissory note?

"Where fraudulent misrepresentation is involved, the victim can obtain rescission and/or damages, but where innocent misrepresentation is involved, the only remedy is damages." Discuss the accuracy of this statement.

Which of the following is one of the remedies generally available for a breach of contract?

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?

What does an innocent party to an anticipatory breach risk should he or she continue to demand performance?

On February 1, Smyth contracted to buy Dupont's van.They agreed that Smyth would pay the price of $7000 on March 1 and take delivery and the risk on that date.Smyth then contracted to sell the van in Smithers on March 5 for $7600.On February 22, Dupont called Smyth and said he wasn't going to sell the van; he had decided to keep it.On these facts, which of the following is false?

A misrepresentation must be a false statement of fact unless it is a statement by an expert.

Which of the following is an example of duress?

A computer salesman innocently misrepresented a fact about a Macintosh computer to a customer.Although this fact was not about a term of the contract, it did induce the customer to buy the computer.The customer has now learned the true facts and wants to return the computer.If the store refused to take it back, the customer would ask the court for which equitable remedy?

A contract is terminated by agreement in which of the following situations:

Quantum meruit is applied where the contract is breached after all work has been done.

Which of the following is true with regard to remedies for breach of contract?

Clive and Bill were not friends but worked in the same firm.Both worked with computers and had computers at home.They entered a contract in which Clive agreed to sell Bill his "Apple, printer, and a compatible word processing program for $3000." When Bill went to take delivery of the goods, he realized that there had been a great mistake.He thought Clive was selling his Apple Macintosh.By "Apple" Clive meant his Apple IIe.Furthermore, unknown to both of them at the time of the contract, the program disk had been destroyed by some coffee accidentally spilled on it by a friend of Clive's wife.Bill refused to go through with the deal.On these facts, which of the following is true if Clive sues Bill?

Discuss what happens when the parties to a contract make mistakes with respect to what they have agreed.

Distinguish between duress and undue influence.

Mr.Copperfield, a collector of movie memorabilia, bid $50 000 on the Batmobile.After taking delivery, he discovered that the car was not the one actually used in the film Batman; it was merely one of five cars used to promote the film.He is suing the seller, Mr.Eisenberg.If Copperfield could prove any of the following, which would entitle him to return the Batmobile and get his money back?