Exam 8: Factors Affecting the Contractual Relationship

Mrs.Reid prepared her house for the market by contracting with Silversteps Ltd.to have her front steps replaced for the sum of $800.Warren,an employee of the company,worked for days framing the stairs and pouring the concrete.Unfortunately,he had done the framing wrong and,in addition,the concrete mix was faulty,so all of his efforts were in vain; the stairs were worthless.On these facts,which of the following is true?

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

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

In Sylvan Lake Golf & Tennis Club Ltd.v.Performance Industries Ltd.,the defendant attempted to take advantage of a mistake made by the plaintiff.What did the Court hold?

Where the misrepresentation is innocent,explain the remedies available to the victim.

Correction,by the court,of the wording of a mistake in the contract is known as ________.

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

Which one of the following mistakes voids a contract?

Which of the following will have the likely consequence of the court's finding the contract void on the grounds of mistake?

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

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

Victims of misrepresentation who have affirmed the contract are bound by the affirmation and cannot later insist on ______________.

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

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

Joe agreed to paint Sam's house for $1000.Joe then assigned the $1000 claim to Harry,who served notice on Sam about the assignment.When it came time for payment,Harry was informed by Sam that he would not pay because the paint was peeling off his house.Harry said that that was nothing to do with him and demanded payment.Explain the legal position of the parties.

Adam bought a boat from Charlie for $900 payable on November 6.On November 6,when Charlie came for the money,Adam didn't have it.Adam was,however,employed by Ms.Bey to do some market research.He was to be paid $1000 for his report,due on November 12.Charlie wanted an assignment of $900 of the amount Adam expected to receive November 12.Adam wrote out an assignment with all the essential information and signed it.Charlie gave written notice of the assignment with all pertinent information to Ms.Bey the next day,November 7.On November 12,Adam had not finished his report.The contract provided that he would lose $100 for every week he was late.Adam was two weeks late in submitting his report.Which of the following is true?

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar,her employee.After the ad was run,it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.Based on these facts,which of the following is true?

Distinguish between duress and undue influence.

The equitable remedy of rectification is granted by the courts in which of the following situations?

A real-estate agent,Jones,was owed a $7000 commission,having sold property for Mr.Quick.Mr.Quick couldn't be found,but Jones did find his wife and learned that she had over $20 000 in treasury bills.Mr.Jones told her that if she didn't assign to him $7000 of the $20 000,he would make sure her husband was imprisoned for his debts and "for other crimes" he knew about.If she did make an assignment in writing to Jones of the $7000 but later tried to void the agreement,she would argue which of the following?