Exam 8: Factors Affecting the Contractual Relationship

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.

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

Often a party to a contract wants to avoid his obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress. Which of the following is false with regard to these areas of the law?

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

When the courts find that undue influence is present, the resulting contract is

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?

The law attempts to help persons who may feel forced to enter contracts. Which of the following is false with regard to the law of undue influence, duress, etc.?

The thing or benefit (such as a claim or the right to sue) that is transferred in an assignment is known as ________.

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

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

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

The contract for the Surrey property had been signed by both parties. Which of the following is necessary for the contract to be set aside on the grounds of misrepresentation?

Fraudulent misrepresentation is intentionally misleading another person into a contract.

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

A unilateral mistake refers a breach of a unilateral contract.

Privity of contract is a principle that holds that a contract can only affect the immediate parties to it.

What is meant by the term "non est factum"?

Mr. Zink hired Bruce Dorne to create a payroll program for his business. Bruce was to be paid $4,000 for the program. When Bruce was half-way finished, a creditor to whom he owed $2,000 pressed so hard for payment that Bruce assigned him $2,000 of the contract price, an amount he felt he had earned already. The creditor, Mr. Pressing, gave written notice that very day to Mr. Zink. On these facts, which of the following is true? (Read each statement separately.)

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 him the oil paintings and sold him the farm. On these facts, which of the following is false?

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; during the next rain the roof leaked as before. Which of the following is true?