Question 1

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

Accepted Answer

Normal contractual r

Question 2

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 true 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 innocent misrepresentation, the buyer could ask for rescission and 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 is good evidence of undue influence. 
E)  Where, a written document embodies the 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 innocent misrepresentation, the buyer could ask for rescission and 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 is good evidence of undue influence. 
E)  Where, a written document embodies the the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification.

Question 3

"Joe received a cheque from Sam for work he had done painting Sam's house,and Joe passed that cheque on to 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 a

Question 4

What is a novation?

Accepted Answer

A novation occurs where two parties have

Question 5

An 80-year-old woman signed,in the presence of a solicitor,a contract for land by which she sold property to her daughter.She later asked the court to set the contract aside on the grounds of non est factum (mistake)and undue influence.Which of the following is true with regard to these grounds for the contract?

Accepted Answer

A)  She can successfully use the plea of non est factum if there is evidence that she was careless when she signed the document. 
B)  She can successfully use the plea of non est factum if she was not misled about the very nature of the document. 
C)  If the court presumes that undue influence was used by the adult who gained from the contract with an aged parent, the contract is automatically set aside. 
D)  If the lawyer were the daughter's husband, his advice would be seen as independent legal advice. 
E)  If the aged mother received independent legal advice, it would be good evidence for the daughter that the mother's transferring the property was done freely, without undue influence being exerted. 
A)  She can successfully use the plea of non est factum if there is evidence that she was careless when she signed the document. 
B)  She can successfully use the plea of non est factum if she was not misled about the very nature of the document. 
C)  If the court presumes that undue influence was used by the adult who gained from the contract with an aged parent, the contract is automatically set aside. 
D)  If the lawyer were the daughter's husband, his advice would be seen as independent legal advice. 
E)  If the aged mother received independent legal advice, it would be good evidence for the daughter that the mother's transferring the property was done freely, without undue influence being exerted.

Question 6

What is the status of the doctrine of privity today?

Accepted Answer

The doctrine still a

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

Explain the impact of the principle of privity on contracts.

Accepted Answer

When two people enter into a c

Question 10

The office manager of a real estate agency was at an office supply store to replace a filing cabinet when he saw a demonstration of a new Xerox copier.Undoubtedly,the agency would benefit from the copier,especially since it had the capability of enlarging the original-a good feature when dealing with the small print of contracts.The next day,he called the manager of the store to discuss the machine further.The seller said that it was "10 years ahead of the competition," that it "was rated as maintenance-free by an independent consumer research group," and that he had "sold five to other real estate agencies in this area" and "had only one left." The agency,relying on these statements,asked to have it delivered.When it arrived,the office manager had learned that every statement made by the seller had been false; furthermore,the seller did not send out the machine discussed,but the old model.Which of the following is true?

Accepted Answer

A)  The agency would have to keep the machine, but could sue the seller for damages for the tort of deceit. 
B)  This is a "buyer beware" situation, and the buyer has no remedy. 
C)  The agency would have a remedy for breach of contract, but no remedy for other statements that merely persuaded it to enter the contract. 
D)  The agency could have returned the machine even if it had been sent the right model, since the remedy of rescission was available to it for misrepresentations made. 
E)  Had the office supply store sent the right machine, the agency would have had no remedy. 
A)  The agency would have to keep the machine, but could sue the seller for damages for the tort of deceit. 
B)  This is a "buyer beware" situation, and the buyer has no remedy. 
C)  The agency would have a remedy for breach of contract, but no remedy for other statements that merely persuaded it to enter the contract. 
D)  The agency could have returned the machine even if it had been sent the right model, since the remedy of rescission was available to it for misrepresentations made. 
E)  Had the office supply store sent the right machine, the agency would have had no remedy.

Question 11

The major problem with _____________ is the need to establish that the person being sued knowingly misled the victim.

Accepted Answer

A)  fraudulent misrepresentation 
B)  innocent misrepresentation 
C)  negligent misrepresentation 
D)  undue influence 
E)  deceit 
A)  fraudulent misrepresentation 
B)  innocent misrepresentation 
C)  negligent misrepresentation 
D)  undue influence 
E)  deceit

Question 12

Joe owned an apartment building and entered into a contract with Sam whereby Sam would operate that apartment building,but the proceeds from the rent and profits would be distributed among Joe's children.This is an example of what kind of an agreement?

Accepted Answer

The answer of Joe owned an apartment building and entered...

Question 13

What is meant by the term "non est factum"?

Accepted Answer

"It is not my act"; grounds fo

Question 14

Misunderstanding occurs when each party has a different understanding of the terms of the agreement,in which case the courts apply a reasonable interpretation of the contract.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

Where the victim of the misrepresentatio

Question 16

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; during the next rain the roof leaked as before.Which of the following is true?

Accepted Answer

A)  Ho could successfully sue only Tarr for breach of contract. 
B)  Ho could successfully sue only Fix or Tarr for breach of contract, whichever he chooses, but not both. 
C)  Ho could successfully sue Fix and Tarr for breach of contract since they were both connected with the job. 
D)  If Tarr doesn't pay Fix, Fix could sue Ho directly for his pay because he worked on Ho's roof. 
E)  Ho could only sue Tarr because he is the one who did a poor job of the roof. 
A)  Ho could successfully sue only Tarr for breach of contract. 
B)  Ho could successfully sue only Fix or Tarr for breach of contract, whichever he chooses, but not both. 
C)  Ho could successfully sue Fix and Tarr for breach of contract since they were both connected with the job. 
D)  If Tarr doesn't pay Fix, Fix could sue Ho directly for his pay because he worked on Ho's roof. 
E)  Ho could only sue Tarr because he is the one who did a poor job of the roof.

Question 17

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

Accepted Answer

That the c

Question 18

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 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 (a relic).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?

Accepted Answer

A)  With regard to which computer is the subject matter of the contract, the court will determine which computer was meant to be sold by the seller and declare that one to be the subject matter of the sale. 
B)  Since the parties to the contract have a different understanding as to the subject matter of the sale, they can ask the court for rectification-that is, for the court to rewrite the contract. 
C)  With regard to the program disk, since all the elements of a contract exist-offer, acceptance, consideration-Bill must pay for it. 
D)  With regard to which computer is the subject matter of the sale, the court will examine which interpretation is the more reasonable; if they are equally reasonable, that part of the contract, at least, will be void. 
E)  This is an example of caveat emptor and the purchaser has no remedy. 
A)  With regard to which computer is the subject matter of the contract, the court will determine which computer was meant to be sold by the seller and declare that one to be the subject matter of the sale. 
B)  Since the parties to the contract have a different understanding as to the subject matter of the sale, they can ask the court for rectification-that is, for the court to rewrite the contract. 
C)  With regard to the program disk, since all the elements of a contract exist-offer, acceptance, consideration-Bill must pay for it. 
D)  With regard to which computer is the subject matter of the sale, the court will examine which interpretation is the more reasonable; if they are equally reasonable, that part of the contract, at least, will be void. 
E)  This is an example of caveat emptor and the purchaser has no remedy.

Question 19

According to Braut v.Stec,what is the Court's position when one enters into a contract where a claim is made that a bargain is unconscionable?

Accepted Answer

A)  There is an automatic presumption of undue influence due to the relationship of the parties. 
B)  A close relationship between business associates prevents a finding of unconscionability. 
C)  When one party lacks the intellect to enter into a contract, the contract continues to be binding on both parties. 
D)  A presumption of fraud is raised when there is an inequality in the position of the parties due to the ignorance of the weaker party. 
E)  Because a party to the contract is an uneducated immigrant, the contract is voidable. 
A)  There is an automatic presumption of undue influence due to the relationship of the parties. 
B)  A close relationship between business associates prevents a finding of unconscionability. 
C)  When one party lacks the intellect to enter into a contract, the contract continues to be binding on both parties. 
D)  A presumption of fraud is raised when there is an inequality in the position of the parties due to the ignorance of the weaker party. 
E)  Because a party to the contract is an uneducated immigrant, the contract is voidable.

Question 20

What is rectification?

Accepted Answer

Correction,by the co

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

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 true with regard to these areas of the law?

What is a novation?

What is the status of the doctrine of privity today?

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

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

Explain the impact of the principle of privity on contracts.

The major problem with _____________ is the need to establish that the person being sued knowingly misled the victim.

Joe owned an apartment building and entered into a contract with Sam whereby Sam would operate that apartment building,but the proceeds from the rent and profits would be distributed among Joe's children.This is an example of what kind of an agreement?

What is meant by the term "non est factum"?

Misunderstanding occurs when each party has a different understanding of the terms of the agreement,in which case the courts apply a reasonable interpretation of the contract.

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

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

According to Braut v.Stec,what is the Court's position when one enters into a contract where a claim is made that a bargain is unconscionable?

What is rectification?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 8: Factors Affecting the Contractual Relationship

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

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 true with regard to these areas of the law?

What is a novation?

What is the status of the doctrine of privity today?

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

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

Explain the impact of the principle of privity on contracts.

The major problem with _____________ is the need to establish that the person being sued knowingly misled the victim.

Joe owned an apartment building and entered into a contract with Sam whereby Sam would operate that apartment building,but the proceeds from the rent and profits would be distributed among Joe's children.This is an example of what kind of an agreement?

What is meant by the term "non est factum"?

Misunderstanding occurs when each party has a different understanding of the terms of the agreement,in which case the courts apply a reasonable interpretation of the contract.

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

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

According to Braut v.Stec,what is the Court's position when one enters into a contract where a claim is made that a bargain is unconscionable?

What is rectification?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters