Exam 8: Factors Affecting the Contractual Relationship

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

If Mills agreed to sell Boothe a used Nissan automobile,which in the contract was described as a 2012 Nissan Murano with a rebuilt transmission,Boothe could sue for _________ if the vehicle turned out to be a 2010 Murano and the transmission was used,not rebuilt.

What is the significance of an assignment being "statutory" rather than merely an "equitable" assignment?

Which of the following is an example of duress?

A week after signing a contract,you became aware that you and the other party,Sheldon,seemed to have a different understanding of one of the provisions of the contract.Before you said anything to him,you reread it to see if your interpretation was valid.As you reread it,you noticed that not only was that provision vague,but also other terms and provisions were ambiguous or left out.Which of the following is false with regard to the methods used by the courts to interpret contracts?

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 Macintosh clone.Paul paid $900 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 interface 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.Based on these facts,which of the following is true?

Able Company contracted to sell to Baker Company 400 barrels of chemical C for $1200.Able Company assigned the entire $1200 in writing to Mr.Long,who sent a letter informing Baker Company of the assignment and directing Baker Company to forward money to him instead of Able Company.Unbeknown to both companies,at the time of the contract the ship carrying the chemical had sunk and all cargo was lost.Which of the following is true?

Non est factum is available as a defence even when there is negligence on the part of the person claiming it.

Undue influence takes place when one person uses violence to force another to enter into a contract.

A computer salesperson 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?

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?

Discuss the various remedies that are available where one of the parties to the contract is a victim of misrepresentation.

You and your parents were both surprised when your grandmother said the doctor told her to come for weekly checkups,because she didn't seem sick.Nevertheless,you dutifully took her to and from her appointments for a period of about six months.She never talked about these sessions,but loved to go.Now she has come to the family and said that she is sorry that she gave the doctor the oil paintings and sold him the farm.On these facts,which of the following is false?

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

"Misrepresentation involves a misleading statement of fact,not opinion." Discuss the accuracy of that statement.

What is a constructive trust?

A victim of fraud cannot seek damages where rescission is not available.

For a contract to be unconscionable,it is necessary that the victim was particularly vulnerable and that the bargain was unfair.

If the person making the misrepresentation is in no way at fault,the misrepresentation is innocent,and the remedies are limited.

On September 1,Beeton contracted to sell $4000 worth of specified Kenyan lumber to Cairns.Beeton expected the arrival of the lumber soon,so the delivery date was set for September 8.On September 5,Beeton assigned,in writing,his contractual right to receive the $4000 to his bank,which was pressing him to reduce his $17 000 debt.The bank sent a written notice to Cairns instructing him to forward the $4000 to the bank and not to pay Beeton directly.Unknown to either Beeton or Cairns,the lumber had been lost at sea in August,before they had even entered the contract.On these facts,which of the following is true?