Exam 8: Factors Affecting the Contractual Relationship

Mary has a little scam most everywhere she goes.She sells by saying anything.Her buyers just have woes.Which of the following is true with regard to misrepresentation?

Explain what is meant by the parol evidence rule.

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

Explain what is meant by rectification.

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

The facts of a case heard by the Supreme Court of Canada are as follows: Mr.and Mrs.H were induced to sign a mortgage in favour of M.C.R.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 on their home.Neither read the document or questioned it.When the payments were in arrears,the mortgagee took an action for foreclosure (to take their home).Mr.and Mrs.H.pleaded non est factum.Would this defence succeed? Why or why not?

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

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

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?

Mike is given a bottle of wine as a gift.Josh,a neighbour,sees it and recognizes it as a very rare bottle.Knowing that Mike doesn't drink,Josh offers him $300 for it,which he believes to be a fair price.Mike happily agrees.Later,when Josh is looking up the price of the bottle on eBay,he realizes that it is not a valuable bottle of wine at all.He had confused it with another vintage.Josh,who is taking a law class,wonders whether or not he could have the contract set aside.Which of the following statements is true?

The threat of violence makes a contract voidable.

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just some aspect of it.

Able Company contracted to sell to Baker Company 400 barrels of chemical C for $12,000.Able Company assigned the entire $12,000 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.Unknown 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?

Explain the impact of the principle of privity of contracts.

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

In which of the following would the court find that the contract is void (i.e.,not a binding agreement)?

Which one of the following mistakes voids a contract?

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

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 StarSystem Inc.He was fascinated by its performance.The salesman,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 1 terabyte of hard drive space,Ross said this model had 2.5 terabytes.Gary was persuaded and contracted for it.Later Gary learned that every statement made by the salesman 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?

Which of the following is an example of duress?