Exam 8: Factors Affecting the Contractual Relationship

Mr. Copperfield, a collector of movie memorabilia, bid $50,000 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.)

In Works v. Works, what was the result where one party was mistaken about something significant in the contract?

With respect to having the court set aside a contract on the basis of undue influence, which of the following is false?

Explain what is meant by a "statutory assignment".

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

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

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

Explain what is meant by "unjust enrichment".

Correction, by the court, of the wording of a mistake in the contract is known as ________.

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

A salesman innocently misrepresented a fact to a customer about a new printer. He honestly believed his statement was true and was not careless. Although this fact was not about a term of the contract, it did induce the customer to buy that printer. The next day, the customer learned the true facts and wanted to return the printer. If the store refused to take it back and the customer sued, which of the following would be the most likely result?

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 their home). Which of the following is correct with respect to the legal position of the parties?

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?

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?

To avoid a contract on the basis of non est factum, the mistake must have gone to the entire nature of the agreement, not just some aspect of it.

Clive and Bill were not friends but worked in the same firm. Both worked with computers and had computers at home. They entered a contract in which Clive agreed to sell Bill his "Apple, printer, and a compatible word-processing program for $3,000." When Bill went to take delivery of goods, he realized that there had been a great mistake. He thought Clive was selling his Apple Macintosh. By "Apple" Clive meant his Apple IIe. Furthermore, unknown to both of them at the time of the contract, the program disk had been destroyed by some coffee accidentally spilled on it by a friend of Clive's wife. Bill refused to go through with the deal. On these facts, which of the following is true if Clive sues Bill?

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

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

A provision in equity whereby one person transfers property to a second person obligated to use it to the benefit of a third is known as ________.

When you went home for Thanksgiving dinner, your great aunt, now 80 years old, seemed very unhappy. You learned that she had just signed a contract buying an expensive condominium in a retirement community. She had attended a real estate "seminar" with her friend. In trying to think of a way for her to get out from under this contract, you review mistake, duress, undue influence, and unconscionability. Which of the following is false?