Exam 8: Factors Affecting the Contractual Relationship

In Rochdale Credit Union v. Barney, a lawyer persuaded his client to guarantee a loan. The relationship of solicitor/client leads to a presumption of

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

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

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 all a big mistake. On these facts, which of the following is true?

In Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd., the defendant attempted to take advantage of a mistake made by the plaintiff. What did the Court hold?

What does it mean that an assignee is "subject to the equities"?

In Moss v. Chin, Chin's insurer, ICBC, made an offer to settle a claim that was accepted by the public trustee representing Mrs. Moss. ICBC was not aware that Mrs. Moss had died in the interim. ICBC made a unilateral mistake and yet the Court ordered that the contract be rescinded. What was the rationale?

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.

What is the term used to describe a claim which results in a court declaring a contract void because a party is unaware of the nature of the contract?

Which of the following is false with regard to the law of contracts?

Explain why agency is not really an exception to the privity rule.

What is the significance of an assignment being "statutory" rather than merely an "equitable" assignment?

Joe, a student at the local college, had a one-year lease on a suite in a house owned by Sam. Sam sold that house to Jones without telling him about the lease. When he discovered Joe in the suite, he demanded that Joe leave. Explain the rights of the parties in terms of privity of contract.

The original party cannot enforce a contract that bestows benefits on an outsider.

Selling the contents of the house in preparation for a move to a condominium, Mr. Lotski sold an antique desk to a Mr. Rogers who paid by a cheque later returned N.S.F. (not sufficient funds). Lotski later learned that Rogers had sold the desk to Mrs. Lee for cash, which he took and then disappeared. Who is entitled to the desk if the court holds that the first contract between Lotski and Rogers is voidable?

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?

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

Distinguish between duress and undue influence.

Discuss the principle of caveat emptor and how it relates to misrepresentation in contract law.

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