Question 1

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

Accepted Answer

a construc

Question 2

Explain what is meant by a "trust."

Accepted Answer

It is a principle from the law

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

Mr.Copperfield,a collector of movie memorabilia,bid $250,000 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.)

Accepted Answer

A) Fraudulent misrepresentation by Mr.Eisenberg 
B) Innocent misrepresentation by Mr.Eisenberg 
C) Breach of contract by Mr.Eisenberg 
D) Negligent misrepresentation by Mr.Eisenberg 
E) Unilateral mistake by Mr.Copperfield 
A) Fraudulent misrepresentation by Mr.Eisenberg 
B) Innocent misrepresentation by Mr.Eisenberg 
C) Breach of contract by Mr.Eisenberg 
D) Negligent misrepresentation by Mr.Eisenberg 
E) Unilateral mistake by Mr.Copperfield

Question 5

When a negotiable instrument is used,the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

The answer of Where one person transfers his rights to...

Question 7

Privity of contract applies in which of the following situations?

Accepted Answer

A) Where an interest in land is involved 
B) Where a trust is involved 
C) Where an insurance contract is involved 
D) Where goods are being sold 
E) Where a trust has been created 
A) Where an interest in land is involved 
B) Where a trust is involved 
C) Where an insurance contract is involved 
D) Where goods are being sold 
E) Where a trust has been created

Question 8

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

Accepted Answer

When an agent acts on behalf of a princi

Question 9

Randal embezzled $6000 of his employer's money and then disappeared.The employer's accountant called at Randal's residence and found out that his wife had a $3500 term deposit.When the accountant threatened to have her husband arrested and imprisoned if she did not agree,she assigned the term deposit to the employer to help to defray the loss from the embezzlement.If the wife were later to sue for return of the term deposit,what would be her ground for avoiding the assignment?

Accepted Answer

A) Undue influence 
B) Duress 
C) Mistake of law 
D) Fraudulent misrepresentation 
E) Non est factum 
A) Undue influence 
B) Duress 
C) Mistake of law 
D) Fraudulent misrepresentation 
E) Non est factum

Question 10

When parties enters into a contract where a claim is made that a bargain is unconscionable,which of the following is correct?

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 11

Indicate what must be present in order for an assignment to qualify as a statutory assignment.

Accepted Answer

1.The assignment must be absol

Question 12

Explain what is meant by a "constructive trust."

Accepted Answer

A trust inferred by

Question 13

In Moss v.Chin,Chin's insurer,ICBC,made an offer to settle a claim that was accepted by the public trustee representing Mrs.Moss.ICBC was not aware that Mrs.Moss had died in the interim.ICBC made a unilateral mistake and yet the Court ordered that the contract be rescinded.What was the rationale?

Accepted Answer

A) ICBC lacked capacity to make an offer,as only Chin had such a right. 
B) The public trustee lacked capacity to accept an offer,as only Mrs.Moss could do so,and she had died. 
C) It is illegal to settle a claim when the claimant is no longer alive. 
D) There was no consideration to support the claim,and therefore the contract was invalid. 
E) ICBC had not misled itself,rather the public trustee had deliberately set out to keep ICBC from discovering the truth. 
A) ICBC lacked capacity to make an offer,as only Chin had such a right. 
B) The public trustee lacked capacity to accept an offer,as only Mrs.Moss could do so,and she had died. 
C) It is illegal to settle a claim when the claimant is no longer alive. 
D) There was no consideration to support the claim,and therefore the contract was invalid. 
E) ICBC had not misled itself,rather the public trustee had deliberately set out to keep ICBC from discovering the truth.

Question 14

The remedy of rescission is not available if the parties cannot be returned to their original positions because the subject matter of the contract has been destroyed or damaged.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

Normal contractual r

Question 16

Distinguish between innocent and fraudulent misrepresentation,indicating why the distinction is important.

Accepted Answer

Innocent misrepresentation is involved w

Question 17

Mr.Jans owned a small building with four offices upstairs and a restaurant on the main floor.Jans contracted with a company,Signs Limited,to construct a sign indicating the names of his tenants and their room numbers.The sign was created and installed by John Monet,an employee of Signs Limited.Signs Limited assigned $500 of the $700 contract price to Ms.Franz,its landlord,when she called and pressed for the rent.Ms.Franz gave notice of the assignment in writing to Jans.Read the following statements,independently of one another,and indicate which is the true statement.

Accepted Answer

A) If Signs Limited fails to pay Monet's salary,Monet is legally entitled to sue Jans for it because Monet did work for Jans. 
B) Franz cannot enforce this assignment because the assignment was not in writing,and only assignments in writing will be enforced by the courts. 
C) If the sign were not done properly,Jans should sue Monet for breach of contract because Monet,as the employee,did the work. 
D) If the contract were completed satisfactorily,Franz could enforce the assignment,although it is a partial assignment. 
E) If the assignment is not honoured by Jans,Franz' only recourse is to sue Monet,the employee who actually did the work. 
A) If Signs Limited fails to pay Monet's salary,Monet is legally entitled to sue Jans for it because Monet did work for Jans. 
B) Franz cannot enforce this assignment because the assignment was not in writing,and only assignments in writing will be enforced by the courts. 
C) If the sign were not done properly,Jans should sue Monet for breach of contract because Monet,as the employee,did the work. 
D) If the contract were completed satisfactorily,Franz could enforce the assignment,although it is a partial assignment. 
E) If the assignment is not honoured by Jans,Franz' only recourse is to sue Monet,the employee who actually did the work.

Question 18

In order to succeed in suing for a misrepresentation,the misrepresentation must have been in writing.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

The remedy of damage

Question 20

What is the status of the doctrine of privity today?

Accepted Answer

The doctrine still applies,but there are

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

Explain what is meant by a "trust."

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.

When a negotiable instrument is used,the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

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

Privity of contract applies in which of the following situations?

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

When parties enters into a contract where a claim is made that a bargain is unconscionable,which of the following is correct?

Indicate what must be present in order for an assignment to qualify as a statutory assignment.

Explain what is meant by a "constructive trust."

In Moss v.Chin,Chin's insurer,ICBC,made an offer to settle a claim that was accepted by the public trustee representing Mrs.Moss.ICBC was not aware that Mrs.Moss had died in the interim.ICBC made a unilateral mistake and yet the Court ordered that the contract be rescinded.What was the rationale?

The remedy of rescission is not available if the parties cannot be returned to their original positions because the subject matter of the contract has been destroyed or damaged.

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

Distinguish between innocent and fraudulent misrepresentation,indicating why the distinction is important.

In order to succeed in suing for a misrepresentation,the misrepresentation must have been in writing.

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

What is the status of the doctrine of privity today?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: The Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence,Professional Liability,and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 8: Factors Affecting the Contractual Relationship

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

Explain what is meant by a "trust."

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.

When a negotiable instrument is used,the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

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

Privity of contract applies in which of the following situations?

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

When parties enters into a contract where a claim is made that a bargain is unconscionable,which of the following is correct?

Indicate what must be present in order for an assignment to qualify as a statutory assignment.

Explain what is meant by a "constructive trust."

In Moss v.Chin,Chin's insurer,ICBC,made an offer to settle a claim that was accepted by the public trustee representing Mrs.Moss.ICBC was not aware that Mrs.Moss had died in the interim.ICBC made a unilateral mistake and yet the Court ordered that the contract be rescinded.What was the rationale?

The remedy of rescission is not available if the parties cannot be returned to their original positions because the subject matter of the contract has been destroyed or damaged.

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

Distinguish between innocent and fraudulent misrepresentation,indicating why the distinction is important.

In order to succeed in suing for a misrepresentation,the misrepresentation must have been in writing.

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

What is the status of the doctrine of privity today?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: The Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence,Professional Liability,and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters