Exam 8: Factors Affecting the Contractual Relationship

The contract for the Surrey 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?

When Gary went into Computer Heaven,Ltd.to get a better manual for the program he was trying to master,he was caught by a demonstration of a computer created by Next Inc.He was fascinated by its performance.The salesperson,Ross,told Gary that he should have this machine; that "it was the last computer,no other will ever be better"; that "UBC,Simon Fraser University,and BCIT just ordered over 1000 of them"; that he only had "a few left and the demand is so great it will take almost a year for the next shipment to arrive." When Gary said he needed a computer with at least 1000 Gigabytes,Ross said this model had 2500 Gigabytes.Gary was persuaded and contracted for it.Later Gary learned that every statement made by Ross was untrue,including the statement about the memory capacity; the model only had 400 Gigabytes.On these facts,which of the following is true?

When you went home for Thanksgiving dinner,your great aunt,now 80 years old,seemed very unhappy.You learned that she had just signed a contract buying an expensive condominium in a retirement community.She had attended a real estate "seminar" with her friend.In trying to think of a way for her to get out from under this contract,you review mistake,duress,undue influence,and unconscionability.Which of the following is false?

Damages as a remedy will not be available in which of the following situations?

With regard to the law governing privity of contract and assignment,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?

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

When it has been clearly established that one of the parties to the contract has been the victim of undue influence,that contract is void.

Explain why agency is not really an exception to the privity rule.

Negotiable instruments can sometimes convey better rights than existed between the original parties.

Lars Jepsen,a fisherman from Tofino,regularly sells his catch to packing plants in Steveston.His shipment had already left dock last Monday,but he didn't contract for its sale until yesterday.He sold this shipment for $10 000 to B.C.Packers.Jepsen still owes Sam $3,000,part of his commission for having sold one of his waterfront properties.This morning he assigned to Sam,in writing,$3000 of the $10 000 owed under the contract with B.C.Packers.Unknown to Jepsen or B.C.Packers,at the time they made the contract,his transporter had gone down in a storm and all the cargo was lost.Jepsen had no insurance for loss of his boat.Which of the following is correct with respect to his legal position?

Allen hired Beth to do a marketing survey.The contract provided that she would start the work on January 15 and finish it by March 15,the date for completion being a condition on the contract.She would be paid $2000.After one month of work,when the work was half completed,Beth assigned the $2000 contract price to Charlie,from whom she had bought computer hardware.Charlie gave written notice of the assignment to Allen on the same day.The second month's work went badly.Information entered into the computer was lost and Beth could not finish on time.She was five days late,and each day cost Allen $100.His total foreseeable loss was $500 because of her breach.On these facts,which of the following is true?

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.Based on these facts,which of the following is true?

What is a negotiable instrument?

When there is clear evidence that both parties agreed to something different than what was in the written document,the courts will rectify the document.

The purpose of contract law is to give effect to the reasonable expectations of the parties to an agreement.

Mr.Copperfield,a collector of movie memorabilia,bid $50 000 on the Batmobile.After taking delivery,he discovered the car was not the car 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.In which of the following cases would Mr.Copperfield not be entitled to a remedy? (Assume that in each case the facts could be proven.)

A trust inferred by the courts to benefit a third party to a contract is known as ________.

"Novation" is the term used when a new party is substituted for an original party to the contract.

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