Question 1

Explain what is meant by a collateral contract.

Accepted Answer

A separate contractu

Question 2

What is the status of the doctrine of privity today?

Accepted Answer

The doctrine still applies, but there ar

Question 3

Fraud does not exist if the victim of the misrepresentation could have found out the truth, but relied instead on the statement of the defendant.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

Mary has a little scam most everywhere she goes. She sells by saying anything. Her buyers just have woes. Which of the following is true with regard to misrepresentation?

Accepted Answer

A)  There are several remedies available in case law for an exaggerated claim made by Mary. 
B)  If Mary induces the buyer to buy by making a misrepresentation that she honestly thought was true, the buyer has no remedy in law or in equity. 
C)  A misrepresentation can be made about a term of a contract and result in an award of rescission and/or damages. 
D)  In some types of misrepresentation there are no remedies available. 
E)  For fraudulent misrepresentation, the buyer can be granted the equitable remedy of only rescission. 
A)  There are several remedies available in case law for an exaggerated claim made by Mary. 
B)  If Mary induces the buyer to buy by making a misrepresentation that she honestly thought was true, the buyer has no remedy in law or in equity. 
C)  A misrepresentation can be made about a term of a contract and result in an award of rescission and/or damages. 
D)  In some types of misrepresentation there are no remedies available. 
E)  For fraudulent misrepresentation, the buyer can be granted the equitable remedy of only rescission.

Question 6

If the person making the misrepresentation is in no way at fault, the misrepresentation is innocent, and the remedies are limited.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Rescission and/or damages 
B)  Rescission only 
C)  Damages only 
D)  Rectification 
E)  There is no remedy available for fraudulent misrepresentation. 
A)  Rescission and/or damages 
B)  Rescission only 
C)  Damages only 
D)  Rectification 
E)  There is no remedy available for fraudulent misrepresentation.

Question 8

Explain the impact of the principle of privity of contracts.

Accepted Answer

When two people enter into a c

Question 9

Explain what is meant by "privity of contract."

Accepted Answer

A principle that con

Question 10

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

Accepted Answer

The answer of What is the term used to describe...

Question 11

Mr. Ho talked with Mr. Tarr, who ran a business called Roscali Roofing. Mr. Ho agreed to pay Tarr $250 for the repair of his roof. In time, Gene Fix, Tarr's employee, came to Mr. Ho's and worked on the roof. Fix used the wrong material in the repairs, which made all his effort worthless, and during the next rain the roof leaked as before. Which of the following is true?

Accepted Answer

A)  Ho could successfully sue only Tarr for breach of contract. 
B)  Ho could successfully sue only Fix or Tarr for breach of contract, whichever he chooses, but not both. 
C)  Ho could successfully sue Fix and Tarr for breach of contract since they were both connected with the job. 
D)  If Tarr doesn't pay Fix, Fix could sue Ho directly for his pay because he worked on Ho's roof. 
E)  Ho could only sue Tarr because he is the one who did a poor job of the roof. 
A)  Ho could successfully sue only Tarr for breach of contract. 
B)  Ho could successfully sue only Fix or Tarr for breach of contract, whichever he chooses, but not both. 
C)  Ho could successfully sue Fix and Tarr for breach of contract since they were both connected with the job. 
D)  If Tarr doesn't pay Fix, Fix could sue Ho directly for his pay because he worked on Ho's roof. 
E)  Ho could only sue Tarr because he is the one who did a poor job of the roof.

Question 12

The victim of a fraudulent misrepresentation can also seek punitive damages, that is, damages intended to punish the wrongdoer rather than compensate the victim.

Accepted Answer

A) True 
 B)False

Question 13

Damages as a remedy will not be available in which of the following situations?

Accepted Answer

A)  Jones, although being careful, makes an innocent misrepresentation persuading Smith to enter a contract with him. 
B)  Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him. 
C)  Jones makes a negligent misstatement, persuading Smith to enter a contract with him. 
D)  A false statement made by Jones becomes a term of the contract. 
E)  Jones makes an intentional misrepresentation of fact in order to get Smith to sign the agreement. 
A)  Jones, although being careful, makes an innocent misrepresentation persuading Smith to enter a contract with him. 
B)  Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him. 
C)  Jones makes a negligent misstatement, persuading Smith to enter a contract with him. 
D)  A false statement made by Jones becomes a term of the contract. 
E)  Jones makes an intentional misrepresentation of fact in order to get Smith to sign the agreement.

Question 14

For a contract to be unconscionable, it is necessary that the victim was particularly vulnerable and that the bargain was unfair.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  Assignments are modifications of the privity of contract rule, since they do allow one person to take over the obligations of another. 
B)  An employee sent by his employer to do a routine job for one of the employer's customers is in a contractual relationship with the customer. 
C)  The assignor for value of a negotiable instrument may acquire better rights than the assignee has. 
D)  A statutory assignment is easier to enforce than an equitable assignment. 
E)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
A)  Assignments are modifications of the privity of contract rule, since they do allow one person to take over the obligations of another. 
B)  An employee sent by his employer to do a routine job for one of the employer's customers is in a contractual relationship with the customer. 
C)  The assignor for value of a negotiable instrument may acquire better rights than the assignee has. 
D)  A statutory assignment is easier to enforce than an equitable assignment. 
E)  A party to a contract for services can assign both his contractual obligations and his contractual rights.

Question 16

Explain what is meant by the parol evidence rule.

Accepted Answer

Parol is the principle that co

Question 17

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?

Accepted Answer

A)  If she were influenced to sign the mortgage by her doctor and the mortgage benefited the doctor, the court would presume undue influence. 
B)  If she were influenced to sign the mortgage by her doctor and the court found undue influence, the mortgage would be void and she wouldn't have to pay the mortgage company. 
C)  If she failed to read the mortgage agreement, the mortgage would be void on the basis of non est factum. 
D)  If the person who misled her as to the contents of the mortgage agreement honestly thought what he was stating was correct, she could sue for only damages, not rescission. 
E)  If the court found that there was undue influence by her doctor, who obtained the money from the mortgage, she would not have to repay the mortgage company. 
A)  If she were influenced to sign the mortgage by her doctor and the mortgage benefited the doctor, the court would presume undue influence. 
B)  If she were influenced to sign the mortgage by her doctor and the court found undue influence, the mortgage would be void and she wouldn't have to pay the mortgage company. 
C)  If she failed to read the mortgage agreement, the mortgage would be void on the basis of non est factum. 
D)  If the person who misled her as to the contents of the mortgage agreement honestly thought what he was stating was correct, she could sue for only damages, not rescission. 
E)  If the court found that there was undue influence by her doctor, who obtained the money from the mortgage, she would not have to repay the mortgage company.

Question 18

"Joe received a cheque from Sam for work he had done painting Sam's house, and Joe passed that cheque onto Harry. Harry took it, not knowing that the work done was defective. Because of the principle that an assignee of contractual rights is in no better position than an assignor, Harry would not be able to demand payment on that cheque from Sam." Discuss the accuracy of this statement.

Accepted Answer

It is incorrect. Negotiable instruments

Question 19

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

Accepted Answer

A)  Assignments are modifications of the Privity of Contract Rule, since they do allow a stranger to the contract to receive benefits from the contract. 
B)  An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
C)  The assignee for value of a negotiable instrument may acquire better rights than the assignor had. 
D)  A statutory assignment is easier to enforce than an equitable assignment. 
E)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
A)  Assignments are modifications of the Privity of Contract Rule, since they do allow a stranger to the contract to receive benefits from the contract. 
B)  An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
C)  The assignee for value of a negotiable instrument may acquire better rights than the assignor had. 
D)  A statutory assignment is easier to enforce than an equitable assignment. 
E)  A party to a contract for services can assign both his contractual obligations and his contractual rights.

Question 20

Len's new secretary came in and asked him to sign four letters that he said concerned general office matters. One of the "letters" was, in fact, a cheque for $500, payable to the secretary. The secretary cashed the cheque at his bank, and when his bank presented the cheque for payment, Len refused to pay it. He said he had been tricked and it was all a mistake. On these facts, which of the following is true?

Accepted Answer

A)  Len may be able to avoid his obligation on the cheque on the basis of non est factum. 
B)  Len would be obligated to honour the cheque no matter how careful he was. 
C)  Len may be able to avoid his obligation on the cheque on the basis of duress. 
D)  Len may be able to avoid his obligation on the cheque on the basis of unconscionability. 
E)  Even if he was careless, Len will not have to honour the cheque. 
A)  Len may be able to avoid his obligation on the cheque on the basis of non est factum. 
B)  Len would be obligated to honour the cheque no matter how careful he was. 
C)  Len may be able to avoid his obligation on the cheque on the basis of duress. 
D)  Len may be able to avoid his obligation on the cheque on the basis of unconscionability. 
E)  Even if he was careless, Len will not have to honour the cheque.

Explain what is meant by a collateral contract.

What is the status of the doctrine of privity today?

Fraud does not exist if the victim of the misrepresentation could have found out the truth, but relied instead on the statement of the defendant.

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.

Mary has a little scam most everywhere she goes. She sells by saying anything. Her buyers just have woes. Which of the following is true with regard to misrepresentation?

If the person making the misrepresentation is in no way at fault, the misrepresentation is innocent, and the remedies are limited.

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

Explain the impact of the principle of privity of contracts.

Explain what is meant by "privity of contract."

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

The victim of a fraudulent misrepresentation can also seek punitive damages, that is, damages intended to punish the wrongdoer rather than compensate the victim.

Damages as a remedy will not be available in which of the following situations?

For a contract to be unconscionable, it is necessary that the victim was particularly vulnerable and that the bargain was unfair.

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

Explain what is meant by the parol evidence rule.

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?

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 8: Factors Affecting the Contractual Relationship

Explain what is meant by a collateral contract.

What is the status of the doctrine of privity today?

Fraud does not exist if the victim of the misrepresentation could have found out the truth, but relied instead on the statement of the defendant.

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.

Mary has a little scam most everywhere she goes. She sells by saying anything. Her buyers just have woes. Which of the following is true with regard to misrepresentation?

If the person making the misrepresentation is in no way at fault, the misrepresentation is innocent, and the remedies are limited.

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

Explain the impact of the principle of privity of contracts.

Explain what is meant by "privity of contract."

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

The victim of a fraudulent misrepresentation can also seek punitive damages, that is, damages intended to punish the wrongdoer rather than compensate the victim.

Damages as a remedy will not be available in which of the following situations?

For a contract to be unconscionable, it is necessary that the victim was particularly vulnerable and that the bargain was unfair.

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

Explain what is meant by the parol evidence rule.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters