Question 1

James has an old car for sale.Betty views the car and in response to a question about the age of the car,James replies,"I think it is a 1929 Ford." Betty purchases the car,but the written contract makes no mention of the year of the car.Actually,the car is a 1932 Ford.What remedy does Betty have? What defenses are available to James?

Accepted Answer

The answer of James has an old car for sale.Betty...

Question 2

Sam buys a car from Denise for $3,500 "as is".They agree to the terms of the contract orally.In attempting to reduce the contract to writing,Sam mistakenly writes down the amount as "$2,500".Both parties sign the contract.If either party resists any attempt to correct the document by denying a common mistake the court may

Accepted Answer

A) treat the agreement as void. 
B) treat the agreement as unenforceable but order costs. 
C) correct the written document to reflect accurately the contract made by the parties. 
D) dismiss any action on the basis of non est factum. 
E) rescind the agreement.

Question 3

Explain why an insurance contract needs the utmost good faith.

Accepted Answer

The answer of Explain why an insurance contract needs the...

Question 4

Mr.Chessman,an elderly man,is asking a prominent businessman,Mr.Ross,to sign a contract for the restoration of a downtown apartment building that Mr.Ross owns and that Mr.Chessman lives in.During the ensuing discussion,Mr.Chessman states,"And if you don't sign,your children may suffer." Mr.Ross reluctantly signs.Will this contract be enforceable against Mr.Ross? Explain.

Accepted Answer

The answer of Mr.Chessman,an elderly man,is asking a prominent businessman,Mr.Ross,to...

Question 5

In contract law,the domination of one party over the mind of another to such a degree as to deprive the latter of the will to make an independent decision is known as undue domination.

Accepted Answer

A) True 
 B)False

Question 6

A spouse may set aside a transaction if he or she can prove actual undue influence.

Accepted Answer

A) True 
 B)False

Question 7

Guido is an unsavory money lender who charges 35 percent interest.Upon learning that Sylvia,one of his clients,had become unable to make her weekly payment,Guido tells her that he has "a way of dealing with defaulters where they think twice next time." She then promptly signs a contract agreeing to a 50 percent rate over a longer period of time.Sylvia now wants to get out of this second contract.As a lawyer,what should you advise Sylvia to do?

Accepted Answer

A) nothing,but pay the debt at 50 percent; the contract is enforceable 
B) claim that she entered because of constructive fraud 
C) claim that she entered the contract under duress 
D) claim that she entered into the contract under undue influence 
E) claim that she entered under dire circumstances

Question 8

Explain the concept of non est factum and how this concept has evolved over the years.

Accepted Answer

The answer of Explain the concept of non est factum...

Question 9

A has a Tom Thomson painting that he wishes to sell.A has heard that B is an art lover and takes very good care of the paintings of Canadian masters.As a result,A decides that he will only contract with B.So he calls B and they make a deal over the telephone.Unfortunately,B's servant C overhears the conversation and before B can get to A's house,C arrives there pretending to be B.A sells the painting to C believing that C is B.Just after C leaves A's house,B shows up and A realizes his error.This situation is a classic example of

Accepted Answer

A) breach of contract. 
B) fraud or deceit. 
C) mistake by both parties as to the subject matter of the contract. 
D) unilateral mistake as to identity. 
E) all of the above

Question 10

Non est factum is based not only on the principle of placing loss on the person guilty of carelessness,but also upon recognition of the need for certainty and security in commerce.For these reasons,the application of the principle

Accepted Answer

A) must always result in the enforcement of the contract. 
B) must always result in the unenforceability of the contract. 
C) must depend on the circumstances of each case. 
D) needs to be decided by a jury. 
E) because of its equitable nature,needs to be decided by a judge alone.

Question 11

Damages are not generally awarded in cases of innocent misrepresentation; however,"out-of-pocket" expenses might be awarded.These are referred to as

Accepted Answer

A) expense benefits. 
B) compensation or indemnity. 
C) trivial damages. 
D) an expense supplement. 
E) rescission expenses.

Question 12

Misrepresentation never gives rise to damages for torts as well as rescission in contract.

Accepted Answer

A) True 
 B)False

Question 13

The parking enforcement officer gave Jim a parking ticket.But as it turns out,the NO PARKING sign had been placed in error on private property.Can Jim recover damages in a tort action?

Accepted Answer

A) No,he can't,since damages are not of a pecuniary nature. 
B) Yes,he can,since he was terribly inconvenienced by this affair. 
C) Yes,he can,because the ticket was totally misrepresented. 
D) Yes,he can,because no negligence or fraud is present. 
E) No,he can't,since there was no fraud nor carelessness on the part of the parking enforcement officer.

Question 14

In a legal sense,mistake is

Accepted Answer

A) a mistake of fact. 
B) an error of judgment. 
C) a misunderstanding. 
D) narrowly defined and limited in scope. 
E) a misrepresentation.

Question 15

If the parties disagree over what the words in a contract mean,the court will declare the contract void.

Accepted Answer

A) True 
 B)False

Question 16

What is meant when we say that an innocent party may be entitled to indemnity or compensation as a result of an innocent misrepresentation?

Accepted Answer

The answer of What is meant when we say that...

Question 17

A legal mistake is an error in judgment.

Accepted Answer

A) True 
 B)False

Question 18

The cooling-off period is a time during which a consumer may cancel or rescind a contract without any reason whatsoever.

Accepted Answer

A) True 
 B)False

Question 19

The threat by one party that unless the other party enters into the contract,he will harm the other's child constitutes undue influence.

Accepted Answer

A) True 
 B)False

Question 20

What is an entirety clause?

Accepted Answer

The answer of What is an entirety clause?...

Exam 9: Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Explain why an insurance contract needs the utmost good faith.

In contract law,the domination of one party over the mind of another to such a degree as to deprive the latter of the will to make an independent decision is known as undue domination.

A spouse may set aside a transaction if he or she can prove actual undue influence.

Explain the concept of non est factum and how this concept has evolved over the years.

Non est factum is based not only on the principle of placing loss on the person guilty of carelessness,but also upon recognition of the need for certainty and security in commerce.For these reasons,the application of the principle

Damages are not generally awarded in cases of innocent misrepresentation; however,"out-of-pocket" expenses might be awarded.These are referred to as

Misrepresentation never gives rise to damages for torts as well as rescission in contract.

The parking enforcement officer gave Jim a parking ticket.But as it turns out,the NO PARKING sign had been placed in error on private property.Can Jim recover damages in a tort action?

In a legal sense,mistake is

If the parties disagree over what the words in a contract mean,the court will declare the contract void.

What is meant when we say that an innocent party may be entitled to indemnity or compensation as a result of an innocent misrepresentation?

A legal mistake is an error in judgment.

The cooling-off period is a time during which a consumer may cancel or rescind a contract without any reason whatsoever.

The threat by one party that unless the other party enters into the contract,he will harm the other's child constitutes undue influence.

What is an entirety clause?