Exam 4: Enforcing Contractual Obligations

A real estate agent,Mr.Jones,was owed a $7000 commission,having sold property for Mr.Quick.Quick couldn't be found,but Jones did find Quick's wife and learned that she had over $20 000 in Treasury bills.Jones told her that if she didn't assign to him $7000 of the $20 000,he would make sure her husband was imprisoned for his debts and "for other crimes" he knew about.If she did make an assignment in writing to Jones of the $7000 but later tried to void the agreement,she would argue which of the following?

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

Explain what is meant by a novation.

Len was behind in his work at the office.He decided to go in for a few hours on Sunday to catch up.He asked a secretary to come in for four hours.He turned on his office TV.Just then,his secretary came in and asked him to sign four letters that she said concerned general office matters.He carelessly signed them without taking his eyes off the TV screen.One of the "letters" was,in fact,a cheque for $500 payable to the secretary.The secretary cashed the cheque at her bank,and when her bank presented the cheque for payment,Len instructed his bank not to honour it.He said that he had been tricked and that his signing it was a big mistake.On these facts,which of the following is true?

When a condition is breached,the victim can only sue for damages but must continue to perform his or her obligations under the contract.

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.

Injunction is an example of an equitable remedy.

Which of the following will have the likely consequence of the court finding the contract void on the grounds of mistake?

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

Sam agreed to buy property from Joe to build a store of a certain design.Joe,the vendor,was aware of the design and knew that an easement across the back of the property would prevent such a building being erected,but said nothing.Sam purchased the property,later discovered the easement,and learned that Joe knew about it.He sued for misrepresentation.Discuss the likely outcome.

The victim of innocent misrepresentation can sue for damages but cannot ask for rescission.

Alan entered into a written contract for the purchase of a house owned by Joe.But as the time to move approached,Alan discovered that Joe was refusing to move out and refusing to transfer the property.Apparently a dissatisfied customer had driven through the showroom window of Joe's new car dealership causing him considerable expense.Joe could no longer afford to purchase the new luxury home in Langley to which he had intended to move.Which of the following is the appropriate remedy in these circumstances for Alan,who really wants the house?

The Weyburn Farmers' Co-op contracted to sell a carload of grain to Mr.Takemori for $2000.The co-op assigned,in writing,its contractual right to receive the $2000 to the Royal Bank,to which it was indebted.The Royal Bank gave written notice of the assignment to Takemori.Unknown to the buyer and the seller,at the time of the contract the grain had been destroyed because of a train derailment caused by the negligence of the train conductor.On these facts,which of the following is true?

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Which of the following is true with regard to remedies for breach of contract?

Which of the following will have the likely consequence of the court's finding the contract void on the grounds of mistake?

Mr.Copperfield,a collector of movie memorabilia,bid $50 000 on the Batmobile.After taking delivery,he discovered that the car was not the one 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.If Copperfield could prove any of the following,which would entitle him to return the Batmobile and get his money back?

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 substantial second mortgage on their home.Neither read the document nor questioned it.When the payments were in arrears,the mortgage company took an action for foreclosure (to take the home).Mr.and Mrs.H.pleaded non est factum.Would this defence succeed? If so,why; if not,why not?

Explain the impact of the principle of privity on contracts.