Deck 4: Enforceability of Contractual Rights

Question 1

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm.
The verbal agreement is valid and enforceable if the witnesses testify in court that an agreement of purchase and sale was made.

Answer 1

False

Question 2

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately.
The Statute of Frauds would render the contract illegal if it was not in writing and signed.

Answer 2

False

Question 3

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.
The verbal agreement is valid and enforceable if the witnesses testify in court that an agreement of purchase and sale was made.

Answer 3

True

Question 4

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm.
If Quentin had given Trevor $10 in cash as a deposit the agreement would be enforceable.

Question 5

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm.
The verbal agreement is unenforceable.

Question 6

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm.
The verbal agreement is void.

Question 7

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.
The gallery can successfully answer all of Ravi's case by raising the parol evidence rule.

Question 8

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm.
Assuming the verbal agreement is unenforceable,the contract would still exist.

Question 9

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.
The verbal agreement is unenforceable.

Question 10

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately.
When Hughes cancelled the contract,Martin was released from his obligation to perform.

Question 11

Ray wished to purchase a motor vehicle from Rita on credit,but Ray was unemployed,and Rita was hesitant to sell to him for that reason.Ziggy,who was quite wealthy,said to Rita: "Sell Ray the automobile on credit,and if Ray does not pay you,I will."
If Ziggy made the guarantee in writing,and signed the document,the guarantee would not be enforceable until Ray defaulted on a demand for payment by Rita.

Question 12

Ray wished to purchase a motor vehicle from Rita on credit,but Ray was unemployed,and Rita was hesitant to sell to him for that reason.Ziggy,who was quite wealthy,said to Rita: "Sell Ray the automobile on credit,and if Ray does not pay you,I will."
Ziggy has made an offer to guarantee the payment of the debt of Ray.

Question 13

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.
Ravi may successfully plead that his words were agreement in principle only.

Question 14

Anne met Adriana while shopping,and in the course of conversation,mentioned that she had a motorcycle for sale.Adriana was familiar with Anne's motorcycle,and offered to purchase it for $500.Anne accepted the offer,and Anne and Adriana walked to Anne's home to get the motorcycle.When they reached Anne's house,they were told by Anne's father that the motorcycle had been stolen earlier in the day,and was subsequently found by the police in a badly damaged condition in a local stone quarry.
Anne and Adriana made a valid contract,and Anne must deliver to Adriana the motorcycle in the condition that it was in before it was stolen.

Question 15

In the presence of several witnesses,Quentin verbally agreed to purchase Trevor's farm for $175,000.The next day,Trevor changed his mind,and refused to sell the farm to Quentin.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,Quentin sued Trevor for breach of contract,and for a decree of specific performance to compel Trevor to sell him the farm.
Trevor may successfully plead the Statute of Frauds as a defence.

Question 16

Ray wished to purchase a motor vehicle from Rita on credit,but Ray was unemployed,and Rita was hesitant to sell to him for that reason.Ziggy,who was quite wealthy,said to Rita: "Sell Ray the automobile on credit,and if Ray does not pay you,I will."
The contract of guarantee is subject to the Statute of Frauds.

Question 17

Ray wished to purchase a motor vehicle from Rita on credit,but Ray was unemployed,and Rita was hesitant to sell to him for that reason.Ziggy,who was quite wealthy,said to Rita: "Sell Ray the automobile on credit,and if Ray does not pay you,I will."
Ziggy's promise would be unenforceable,unless it was made in writing and signed by Ziggy.

Question 18

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.
Ravi may successfully plead the Statute of Frauds as a defence.

Question 19

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately.
The Statute of Frauds requires the contract to be in writing,and signed,to be enforceable by Martin against Hughes.

Question 20

Hughes and Martin discussed the possibility of Martin entering the employ of Hughes as the general manager of Hughes's firm.A written contract was prepared and signed by the parties on December 1,1989.The contract provided for a salary of $3,000 per month,and specified that the contract was to run for a period of two years from January 2,1990.On December 28,1989,Hughes notified Martin that he was cancelling the contract.Martin sued Hughes immediately.
Martin may sue Hughes for breach of the contract.

Question 21

While Connor was visiting his physician,he mentioned to him that he wished to sell his expensive sailboat.The physician expressed an interest in buying the boat,and offered to pay Conner $10,000 for it.Conner had intended to advertise the boat for $12,000 in the local newspaper,but agreed to sell it to the physician for $10,000.Some weeks after the boat had been sold,Conner wished to avoid the contract.
In this case,there is a rebuttable presumption of undue influence,because the purchaser was Conner's physician.

Question 22

The Auto Garage advertised vehicle repairs by "licensed mechanics." Tony,a car owner,took his vehicle to Auto for repairs.The garage owner,Xavier,examined the car,and indicated that extensive repairs were required.Tony left his car with Xavier,and the repairs were carried out by another licensed mechanic,Rick,an employee.Tony paid $150 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine.
Tony may sue only Rick,the mechanic who negligently performed the service.

Question 23

The Auto Garage advertised vehicle repairs by "licensed mechanics." Tony,a car owner,took his vehicle to Auto for repairs.The garage owner,Xavier,examined the car,and indicated that extensive repairs were required.Tony left his car with Xavier,and the repairs were carried out by another licensed mechanic,Rick,an employee.Tony paid $150 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine.
Auto is liable to Tony under the vicarious performance rule for Rick's negligence.

Question 24

Sara purchased an old glass vase that Rina represented as an antique made by a famous Italian glassmaker in the 17th century.As proof of its authenticity,Rina produced an old paper with a rough sketch of the vase on it,along with some writing,and what appeared to be the glassmaker's name.Sara later sold the vase to Lise,after telling Lise the story of the vase as told to her by Rina.After Lise purchased the vase,she discovered it to be a reproduction of the original,and of very little value.
Rina is liable to Sara in tort for fraudulent misrepresentation of the vase if she knew the vase was only a reproduction,and the paper a forgery.

Question 25

The Auto Garage advertised vehicle repairs by "licensed mechanics." Tony,a car owner,took his vehicle to Auto for repairs.The garage owner,Xavier,examined the car,and indicated that extensive repairs were required.Tony left his car with Xavier,and the repairs were carried out by another licensed mechanic,Rick,an employee.Tony paid $150 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine.
Money damages awarded by the court for the negligence would be approximately equal to Tony's loss.

Question 26

Krishna,a neighbour of Dominic,wished to borrow a sum of money from a local bank.Dominic was quite wealthy,but elderly,with very poor eyesight.He frequently requested Krishna to read his newspaper to him when Krishna would drop by for a visit,because reading bothered his eyes.One evening,Krishna placed a paper before Dominic,and explained to him that he wished to borrow a sum of money,but required a letter of reference before the bank would make the loan.She requested Dominic to sign the paper to satisfy this requirement.Dominic trusted his friend Krishna,and signed the paper without reading it.Unknown to Dominic,the paper was a guarantee of Krishna's indebtedness,and not a letter of reference.Krishna later defaulted on her debt.
Krishna required Dominic's signature on the paper because the Statute of Frauds requires a guarantee to be in writing,and signed to be enforceable.

Question 27

While Connor was visiting his physician,he mentioned to him that he wished to sell his expensive sailboat.The physician expressed an interest in buying the boat,and offered to pay Conner $10,000 for it.Conner had intended to advertise the boat for $12,000 in the local newspaper,but agreed to sell it to the physician for $10,000.Some weeks after the boat had been sold,Conner wished to avoid the contract.
The physician could rebut the presumption of undue influence by proving that he paid a reasonable price for the sailboat,and that Conner had freely offered to sell him the boat.

Question 28

While Connor was visiting his physician,he mentioned to him that he wished to sell his expensive sailboat.The physician expressed an interest in buying the boat,and offered to pay Conner $10,000 for it.Conner had intended to advertise the boat for $12,000 in the local newspaper,but agreed to sell it to the physician for $10,000.Some weeks after the boat had been sold,Conner wished to avoid the contract.
Conner may raise the claim of undue influence in an attempt to recover the sailboat.

Question 29

Krishna,a neighbour of Dominic,wished to borrow a sum of money from a local bank.Dominic was quite wealthy,but elderly,with very poor eyesight.He frequently requested Krishna to read his newspaper to him when Krishna would drop by for a visit,because reading bothered his eyes.One evening,Krishna placed a paper before Dominic,and explained to him that he wished to borrow a sum of money,but required a letter of reference before the bank would make the loan.She requested Dominic to sign the paper to satisfy this requirement.Dominic trusted his friend Krishna,and signed the paper without reading it.Unknown to Dominic,the paper was a guarantee of Krishna's indebtedness,and not a letter of reference.Krishna later defaulted on her debt.
Dominic may plead non est factum as a defence to a claim by Krishna's creditor on the guarantee.

Question 30

Krishna,a neighbour of Dominic,wished to borrow a sum of money from a local bank.Dominic was quite wealthy,but elderly,with very poor eyesight.He frequently requested Krishna to read his newspaper to him when Krishna would drop by for a visit,because reading bothered his eyes.One evening,Krishna placed a paper before Dominic,and explained to him that he wished to borrow a sum of money,but required a letter of reference before the bank would make the loan.She requested Dominic to sign the paper to satisfy this requirement.Dominic trusted his friend Krishna,and signed the paper without reading it.Unknown to Dominic,the paper was a guarantee of Krishna's indebtedness,and not a letter of reference.Krishna later defaulted on her debt.
If Krishna had told Dominic that the paper was a guarantee for $1,500 when it was in fact for $2,000,D could still successfully plead non est factum as a defence.

Question 31

Anne met Adriana while shopping,and in the course of conversation,mentioned that she had a motorcycle for sale.Adriana was familiar with Anne's motorcycle,and offered to purchase it for $500.Anne accepted the offer,and Anne and Adriana walked to Anne's home to get the motorcycle.When they reached Anne's house,they were told by Anne's father that the motorcycle had been stolen earlier in the day,and was subsequently found by the police in a badly damaged condition in a local stone quarry.
Adriana may avoid the contract on the basis that the parties had made a mistake as to the existence of the subject matter.

Question 32

On March 6,the Limestone Student Society entered into a contract with the Stumbling Stones,a rock group,to give a performance at the Limestone U Students' Union on March 31.On March 29,the Stumbling Stones fell ill with the flu,and were unable to travel to Limestone City.Another rock group was contacted by the Stumbling Stones to appear in their place,and arrived at the Student' Union in time to perform.
The Limestone Student Society must allow the substitute rock group to perform by virtue of the legal doctrine of vicarious performance.

Question 33

Anne met Adriana while shopping,and in the course of conversation,mentioned that she had a motorcycle for sale.Adriana was familiar with Anne's motorcycle,and offered to purchase it for $500.Anne accepted the offer,and Anne and Adriana walked to Anne's home to get the motorcycle.When they reached Anne's house,they were told by Anne's father that the motorcycle had been stolen earlier in the day,and was subsequently found by the police in a badly damaged condition in a local stone quarry.
Adriana is bound in contract,and must purchase the motorcycle even though it is badly damaged.

Question 34

Sara purchased an old glass vase that Rina represented as an antique made by a famous Italian glassmaker in the 17th century.As proof of its authenticity,Rina produced an old paper with a rough sketch of the vase on it,along with some writing,and what appeared to be the glassmaker's name.Sara later sold the vase to Lise,after telling Lise the story of the vase as told to her by Rina.After Lise purchased the vase,she discovered it to be a reproduction of the original,and of very little value.
Lise may take action against Sara to have the contract rescinded on the basis of fraudulent misrepresentation by Sara.

Question 35

On March 6,the Limestone Student Society entered into a contract with the Stumbling Stones,a rock group,to give a performance at the Limestone U Students' Union on March 31.On March 29,the Stumbling Stones fell ill with the flu,and were unable to travel to Limestone City.Another rock group was contacted by the Stumbling Stones to appear in their place,and arrived at the Student' Union in time to perform.
The contract,by its nature,is not subject to vicarious performance.

Question 36

On March 6,the Limestone Student Society entered into a contract with the Stumbling Stones,a rock group,to give a performance at the Limestone U Students' Union on March 31.On March 29,the Stumbling Stones fell ill with the flu,and were unable to travel to Limestone City.Another rock group was contacted by the Stumbling Stones to appear in their place,and arrived at the Student' Union in time to perform.
The contract,by its nature,is not subject to assignment by the rock group.

Question 37

Sara purchased an old glass vase that Rina represented as an antique made by a famous Italian glassmaker in the 17th century.As proof of its authenticity,Rina produced an old paper with a rough sketch of the vase on it,along with some writing,and what appeared to be the glassmaker's name.Sara later sold the vase to Lise,after telling Lise the story of the vase as told to her by Rina.After Lise purchased the vase,she discovered it to be a reproduction of the original,and of very little value.
The contract is voidable by Lise on the basis of innocent misrepresentation.

Question 38

On March 6,the Limestone Student Society entered into a contract with the Stumbling Stones,a rock group,to give a performance at the Limestone U Students' Union on March 31.On March 29,the Stumbling Stones fell ill with the flu,and were unable to travel to Limestone City.Another rock group was contacted by the Stumbling Stones to appear in their place,and arrived at the Student' Union in time to perform.
The privity of contract rule entitles the Limestone Students' Society to reject the substitute rock group,and prevent them from performing.

Question 39

Sara purchased an old glass vase that Rina represented as an antique made by a famous Italian glassmaker in the 17th century.As proof of its authenticity,Rina produced an old paper with a rough sketch of the vase on it,along with some writing,and what appeared to be the glassmaker's name.Sara later sold the vase to Lise,after telling Lise the story of the vase as told to her by Rina.After Lise purchased the vase,she discovered it to be a reproduction of the original,and of very little value.
Lise should act promptly to void the contract on discovery of the misrepresentation,as Lise will lose the right to do so if much time is allowed to pass.

Question 40

While Connor was visiting his physician,he mentioned to him that he wished to sell his expensive sailboat.The physician expressed an interest in buying the boat,and offered to pay Conner $10,000 for it.Conner had intended to advertise the boat for $12,000 in the local newspaper,but agreed to sell it to the physician for $10,000.Some weeks after the boat had been sold,Conner wished to avoid the contract.
In this case,the physician would be obliged to prove that there was no undue influence on his part.

Question 41

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner.
Oswald bought a variety-store franchise because he thought that its position on a bus route near some high-rise apartments would make it very lucrative.He had misread the transit map,however,for the bus ran along the street parallel to the one the store was on,and the occupants of the high rises usually shopped at a store on that street.Since Oswald has made a mistake of fact,the court will grant him rescission of the franchise contract.

Question 42

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss.
Joyce's promise does not have to be in writing to be enforceable.

Question 43

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
The assignment by Stan to Bobmust be in writing to be an effective assignment.

Question 44

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss.
Verity must first try to get the money from Al before approaching Joyce.

Question 45

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss.
A verbal contract concerning the sale of land to Jack by Jill will not be enforceable by either one of them unless it can be shown that the one who wishes to enforce it dealt with the land as if there was such a contract and no other interpretation could be put on his or her actions;that the non-enforcement would perpetrate a fraud and a hardship on the one who wishes to enforce it;and there is clear verbal evidence,such as witnesses to the transaction,to establish that there was such a valid verbal contract between them.

Question 46

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
Mr.Parfait was teaching his son,Jacques,to drive in the family car when Jacques failed to apply his brakes soon enough and hit the car in front,causing considerable damage.Mr.Bouchard,the driver of the other car,should get Mr.Parfait's promise to pay for his repairs in writing or it will be unenforceable.

Question 47

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss.
Audrey agrees verbally to do some repair work on the retaining walls in Douglas's terraced gardens.After she has turned down another contract from someone else,Douglas tells her he has changed his mind.It is now too late to get the other contract.Since the contract concerning the work on Douglas's land was a verbal one,Audrey cannot enforce it due to the Statute of Frauds.

Question 48

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
Josephine is the executor of her father's will.She does not want to liquidate any part of his stock portfolio at this time to pay off a large debt he owed Tom,because the market is very low right now and she would likely get a better price later in the year.Her verbal promise to Tom that she will repay him herself is unenforceable.

Question 49

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
Notice in writing of the assignment must be given to John before John is obliged to pay Bob.

Question 50

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss.
Joyce's promise is called an indemnity.

Question 51

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
The assignment must be of the entire agreement between John and Stan.

Question 52

Joyce's son,Al,borrowed money from Verity Finance.Al lost his job last month and has not made the latest payment on the debt.When Verity's collections department telephones,Joyce answers the phone.She agrees to make the payments if Al does not because she is worried about his state of mind due to his job loss.
Sigmund has been named as executor of his father's estate.Sigmund's father was a very wealthy man who had made a lot of money in real estate and then reinvested his money in mutual funds,and other long-term investments.The finances were in a position to be quickly liquidated.Since his father's death,bills have been piling up and creditors are starting to knock on his door.Sigmund has decided that because there is no way to utilize his father's money in the near future,he will pay the debts out of his own pocket and be reimbursed later from his father's estate.Sigmund is allowed to do this,but must clearly state the intention in writing as outlined in the Statute of Frauds.

Question 53

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
Lev and Drew have been negotiating verbally and in writing concerning the purchase by Lev of a number of items manufactured by Drew's company.All of the material terms of the contract have been agreed.Lev insists that they have reached only the stage of having an agreement in principle but Drew says they have a binding contract.If one of the terms they agreed upon verbally was that they would execute a written contract,the court will hold that a contract does exist.

Question 54

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner.
If Sarah,through embarrassment,fails to do anything about the return of the property for several months,it is unlikely that she would then win an undue influence suit even if she might have done so if she had acted promptly.

Question 55

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner.
If Sarah had not yet given him the property,she would not be obligated to do so since it was simply a gratuitous promise on her part,but,now that she has given it to him,she must prove duress on his part to get it back.

Question 56

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner.
It will be up to Sarah to prove on the balance of probabilities that she was unduly influenced by Tom Takeitall.

Question 57

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner.
Under these circumstances it is up to Tom Takeitall to prove that he did not unduly influence Sarah,if she simply alleges that he did.

Question 58

Sarah is suing her lawyer,Tom Takeitall,for the return of property worth $20,000 that she had given him.She had signed a properly sealed document making the gift to him.She says she knew what she was signing but felt overwhelmed by his manner.
Diana receives a phone call late one night from Robert,her former husband.He said that,if she does not agree in writing to drop her action for support to put herself through university,he will distribute copies of compromising photographs he took of her when they were married.Diana signs the agreement under seal.This is a clear case of duress.

Question 59

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
If Bobfails to give John notice of the assignment,John may lawfully make payment to Stan.

Question 60

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
Payment by John to Stan of the $1,000 before notice in writing of the assignment was given to John would require Bob to recover the payment from Stan,as he could not sue John for the money.

Question 61

For there to be punitive damages,there must have been fraudulent misrepresentation.

Question 62

If Martin bought a property from Nevin,knowing (because it was noted on the title deeds)that Nevin had agreed to a restrictive covenant in his contract to purchase the property from Olan,Martin must conform to the restrictive covenant even if it is not included in his contract with Nevin.

Question 63

Able contracts to build a computerized printing press for Baker.Able subcontracts some of the work on the computerized components to another company,Charlie Co. ,which wired a vital component negligently.The repairs are very costly for Baker.He can sue Able for the losses caused by Charlie Co.

Question 64

Mr.Richards instructed the contractor building his new house to face it with a special synthetic marble made by Messalot Ltd.Messalot had promised Mr.Richards in writing that the synthetic marble would last longer than the Parthenon and be in better shape.Within three months of its installation,which was properly done,the "marble" was cracking,discolouring,and crumbling at the seams.Mr.Richards can sue Messalot successfully although it was not he but the contractor who made the purchase from Messalot.

Question 65

Kevin was injured when a bottle of pop,purchased by Katie and given to him,exploded in his hand.Kevin cannot sue the manufacturer in contract and receive damages for his injuries because he lacks privity of contract.

Question 66

Your car dealer hands you documents for your signature,"the paperwork on the deal" you have just shaken hands on.Among the papers is an undiscussed extended warranty plan.You sign all the documents where the dealer so indicated.You first become aware of the warranty when its cost is automatically debited from your chequing account.Your successful defence to further payments will be non est factum.

Question 67

Generally,a party is under a duty to disclose material facts to the other contracting party,and failure to do so is a violation of his or her duty of utmost good faith.

Question 68

Dick and Jane agree that Susie must pay each of them $10 per month.They sign a contract and show it to Susie,who makes no objection to it.Neither Dick nor Jane may enforce the contract against Susie if she fails to pay.

Question 69

Susan,who is functionally illiterate,asks her friend Jane to read a document aloud to her.She is to sign it in order to purchase chinchillas from Patricia to start a breeding farm.Actually it is a deed transferring ownership of Susan's farm to Patricia and,unknown to Susan,Patricia and Jane have made a secret agreement to sell the farm and share the proceeds.
Since Susan did what was reasonable to deal with her own inability to read,she could raise the defence of non est factum to an action by Patricia to get possession of the farm.

Question 70

Bob applied to the municipality of Smallville for a permit to build an addition onto his home.He contacted the municipal offices by telephone to inquire about the fee for the permit.The building official was unavailable,but the municipal clerk told Bob she thought the current fee was $100 per 1,000 square feet.Bob's new addition was planned to be 3,500 square feet,so he attached a cheque in the amount of $350 to his application and delivered it to the building office.When the permit was approved and returned,a note was attached to it that read that all building permits now cost a flat fee of $250.No money accompanied the note.Bob contacted the municipal offices requesting a refund of his $100.He was told by the clerk that there was no municipal by-law authorizing the repayment of excess fees paid to the municipality so she had no authority to process his refund.Bob would probably be unable to obtain the money he paid in error.

Question 71

Misrepresentation by non-disclosure renders a contract voidable at the option of the party misled.

Question 72

Given the degree to which courts are willing to enforce contracts subject to mutual mistake,cases of this sort tend to place greater hardship upon defendants than plaintiffs.

Question 73

Fraudulent misrepresentation renders a contract void ab initio.

Question 74

Joe,a university student,commuted to and from classes by public transit.He decided that he had to buy a car because the bus service was terrible.Ryan was discussing this problem with Joe and said that he wanted to sell his car in order to purchase a motorcycle.Knowing the car's good condition,Joe said he would buy it.Ryan told him to come by to pick up the car in two days.Neither of them know that Ryan roommate had borrowed the car that day and had destroyed it in an accident.This is not a cause of mistake of fact because the two were both clear as to the subject matter of the contract.

Question 75

Innocent misrepresentation renders a contract voidable at the option of either party.

Question 76

Undue influence is not the same legal concept as duress.Despite this,both constitute grounds for rescission by the affected party.

Question 77

In the situation where misrepresentation occurs,where there has been rescission,there must have been reliance.

Question 78

Susan,who is functionally illiterate,asks her friend Jane to read a document aloud to her.She is to sign it in order to purchase chinchillas from Patricia to start a breeding farm.Actually it is a deed transferring ownership of Susan's farm to Patricia and,unknown to Susan,Patricia and Jane have made a secret agreement to sell the farm and share the proceeds.
Susan could not raise the defence of non est factum if the document she signed was one to purchase chinchillas but for a much higher price than Jane read to her.

Question 79

Susan,who is functionally illiterate,asks her friend Jane to read a document aloud to her.She is to sign it in order to purchase chinchillas from Patricia to start a breeding farm.Actually it is a deed transferring ownership of Susan's farm to Patricia and,unknown to Susan,Patricia and Jane have made a secret agreement to sell the farm and share the proceeds.
If Susan is successful in her defence of non est factum,the courts will grant rectification of the deed transferring the land,and Susan will be able to keep the farm.

Question 80

If Alan is a beneficiary of his father's life insurance with Avuncular Life,he has the statutory right to enforce payment if his father dies and Avuncular refuses to pay on the grounds that Alan lacks privity of contract with it.