Exam 8: Factors Affecting the Contractual Relationship

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

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

An assignee is "subject to the equities," means that a negotiable instrument can never convey more than existed between the original parties.

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

Discuss the signs that the doctrine of privity may be breaking down. In your discussion, include a reference to the leading cases in this area.

The principle that courts will not permit outside evidence to contradict clear wording of a contract is known as ________.

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

Damages are available as a remedy where the misrepresentation has become a term of the contract that is breached, where the misrepresentation is ________, and where there is negligence.

The purpose of contract law is to give effect to the reasonable expectations of the parties to an agreement.

Allen hired Beth to do a marketing survey. The contract provided that she would start the work on January 15 and finish it by March 15, the date for completion being a condition on the contract. She would be paid $2000. After one month of work, when the work was half completed, Beth assigned the $2000 contract price to Charlie, from whom she had bought computer hardware. Charlie gave written notice of the assignment to Allen on the same day. The second month's work went badly. Information entered into the computer was lost and Beth could not finish on time. She was five days late, and each day cost Allen $100. His total foreseeable loss was $500 because of her breach. On these facts, which of the following is true?

A windfall that one party to a contract stands to make at the expense of the other is known as ________.

Explain what is meant by a "constructive trust."

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

In AMJ Campbell v. Kord Products Inc., a comma was inserted into the contract with the effect that both "freight" and "rebates" would be deducted from the sale price, rather than simply "freight rebates." This resulted in a difference of price amounting to $759,000. What was the result?

A victim of fraud cannot seek damages where rescission is not available.

Indicate three situations where the courts will presume a relationship to involve undue influence.

The contract for an Oakville 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?

Mr. Copperfield, a collector of movie memorabilia, bid $250,000 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.)

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

When two parties are involved in a mutual mistake (misunderstanding) as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?