Exam 8: Factors Affecting the Contractual Relationship

Mr.and Mrs.H were induced to sign a mortgage in favour of M Co.Ltd.by Johnston,a man living with their daughter.Johnston led them to believe that the document was an unimportant amendment to an existing mortgage,when in reality,it was a second substantial mortgage of their home.Neither read the document nor questioned it.When the payments were in arrears,the mortgagee took an action for foreclosure (to take their home).Which of the following is correct with respect to the legal position of the parties?

What is the parol evidence rule?

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

What is an involuntary assignment?

With regard to the law concerning misrepresentation,which of the following is true?

An assignee can be in no better position than was the assignor.

Jones offers to sell Smith his car.Smith thinks Jones is selling his 2011 Toyota,and Jones thinks he is selling his 2009 Pontiac.This is an example of which of the following?

What is a chose in action?

In 978011 Ontario Ltd.v.Cornell Engineering Co.,a businessman signed a contract without reading it.He later discovered it contained a provision with which he did not agree.What did the Court hold?

The principle that courts will not permit outside evidence to contradict clear wording of a contract is known as ________.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Mrs.Sharp,the owner of a restaurant,induced the Morissons to buy the business by a misrepresentation; the invoices made her costs appear less than they actually were,and thus her profits more than they actually were.On these facts,which of the following is false?

"A misrepresentation involves one person making a false statement of fact that misleads another and induces that person to enter into the contract." Discuss the accuracy of this statement.

___________ is a false statement of fact that persuades someone to enter into a contract.

Where one person transfers his rights to benefits under a contractual relationship to a third party,this is an example of ________.

A salesperson innocently misrepresented a fact to a customer about a new printer.She honestly believed his statement was true and was not careless.Although this fact was not about a term of the contract,it did induce the customer to buy that printer.The next day,the customer learned the true facts and wanted to return the printer.If the store refused to take it back and the customer sued,which of the following would be the most likely result?

What is unjust enrichment?

What is the significance of determining that the misrepresentation was negligent rather than innocent?

The court will not allow the careless party to escape responsibility when a shared mistake is the result of the negligence of one of the parties.

The thing or benefit (such as a claim or the right to sue)that is transferred in an assignment is known as ________.