Exam 8: Factors Affecting the Contractual Relationship

The office manager of a real estate agency was at an office supply store to replace a filing cabinet when he saw a demonstration of a new Xerox copier.Undoubtedly,the agency would benefit from the copier,especially since it had the capability of enlarging the original-a good feature when dealing with the small print of contracts.The next day,he called the manager of the store to discuss the machine further.The seller said that it was "ten years ahead of the competition," that it "was rated as maintenance-free by an independent consumer research group," and that he had "sold five to other real estate agencies in this area" and "had only one left." The agency,relying on these statements,asked to have it delivered.When it arrived,the office manager had learned that every statement made by the seller had been false.Furthermore,the seller did not send out the machine discussed,but the old model.Which of the following is true?

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

Fraudulent misrepresentation is intentionally misleading another person into a contract.

Indicate under which circumstances the remedy of rescission might not be available.

Explain what is meant by a "chose in action."

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

Explain what is meant by a "statutory assignment."

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

An 80-year-old woman signed,in the presence of a solicitor,a contract for land by which she sold property to her daughter.She later asked the court to set the contract aside on the grounds of non est factum (mistake)and undue influence.Which of the following is true with regard to these grounds for the contract?

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

Mr.Ho talked with Mr.Tarr,who ran a business called Roscali Roofing.Mr.Ho agreed to pay Tarr $250 for the repair of his roof.In time,Gene Fix,Tarr's employee,came to Mr.Ho's and worked on the roof.Fix used the wrong material in the repairs,which made all his effort worthless,and during the next rain the roof leaked as before.Which of the following is true?

With regard to the law governing privity of contract and assignment,which of the following is false?

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

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?

Explain what is meant by a novation.

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 $3000,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?

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

In AMJ Campbell v.Kord Products Inc.,a comma was inserted into the contract with the effect that both "freight" and "rebates" would be deducted from the sale price,rather than simply "freight rebates." This resulted in a difference of price amounting to $759,000.What was the result?

If the person making the misrepresentation is in no way at fault,the misrepresentation is innocent,and the remedies are limited.

A woman sought to set aside a mortgage on the grounds of misrepresentation,undue influence,and non est factum.She had been persuaded to enter into that mortgage contract with a mortgage company by her doctor.Which of the following is true with regard to these challenges to the mortgage contract?