Exam 4: Enforcing Contractual Obligations

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

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?

Which of the following is an example of an exemption or limitation of liability clause?

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 Mr.and Mrs.H's home).Which of the following is correct with respect to the legal position of the parties?

Stanley operates a dog-walking service for a number of wealthy residents in the Hightower subdivision.As a result of recently taking on a number of new clients,Stanley cannot personally perform all of his obligations under each contract with each resident so he arranges for third parties to do some of the dog walking.In these circumstances,Stanley cannot:

Rick was a talented computer programmer and had agreed to work for Bill in his successful computer software business,signing a one-year contract to that effect.On the day he was to start work,and after a week of training where he learned a considerable amount of confidential information about Bill's operation,Rick phoned Bill and announced that he was going to work for Bill's competitor instead.Which of the following is the appropriate remedy in these circumstances?

Mr.Frank,a foreman supervising 43 employees,was asked by his secretary to sign a form requesting additional supplies needed on the factory floor.He was not careless when he examined the form,but his secretary had cleverly arranged the signature line so that instead of signing a request for supplies,he signed a cheque payable to his secretary.What plea,if any,would be used to defend against her action on the cheque?

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

Joe agreed to paint Sam's house for $1000.Joe then assigned the $1000 claim to Harry,who served notice on Sam about the assignment.When it came time for payment,Harry was informed by Sam that he would not pay because the paint was peeling off his house.Harry said that that was nothing to do with him and demanded payment.Explain the legal position of the parties.

A breach of warranty will bring the contract to an end.

You and your parents were both surprised when Grandmother said the doctor told her to come for weekly checkups,because she didn't seem sick.Nevertheless,you dutifully took her to and from her appointments for a period of about six months.She never talked about these sessions,but loved to go.Now she has come to the family and said that she is sorry that she gave the doctor the oil paintings and sold him the farm.On these facts,which of the following is false?

What are liquidated damages?

A fraudulent misrepresentation that induces another person to enter into a contract can result in which of the following remedies?

A contract is terminated by agreement in which of the following situations:

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

What does an innocent party to an anticipatory breach risk should he or she continue to demand performance?

If a warranty in a contract is breached,what rights does the non-breaching party to that contract have?

Duress takes place when one person takes advantage of another's vulnerability because of a special relationship with that person.

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.

Back in the days when people in Vancouver sold houses as houses and not for demolition,Mrs.Reid prepared her house for the market by contracting with Silversteps Ltd.to have her front steps replaced for the sum of $800.Warren,an employee of the company,worked for days framing the stairs and pouring the concrete.Unfortunately,he had done the framing wrong and,in addition,the concrete mix was faulty,so all of his efforts were in vain; the stairs were worthless.On these facts,which of the following is true?