Question 1

In which scenario will the court likely find the contract void on the grounds of mistake?

Accepted Answer

A)  Annette bought a suit thinking she would be invited back for a second interview. She wasn't, and now wants to return the suit on the basis of mistake. 
B)  Ms. Hunt bought some property erroneously thinking that the province was planning to put a highway nearby, even though the seller had never made any such suggestion. She wants out of the contract. 
C)  The parties signed a document that stated the consideration as $1100 instead of the $900 that the buyer and seller had contracted for, but the buyer cannot prove the terms of the original contract. 
D)  Mr. Armstrong accepted an offer by Sidhu, who was selling a "computer program," but learned that they had different understandings of what program was meant. The court cannot say that one interpretation is better than the other. 
E)  Mary contracted to buy "the Acura car" from a collector of cars. He was selling his 2011 model but she thought she was buying the 2012 model. The court, looking at all the evidence, found that his interpretation was the more reasonable. 
A)  Annette bought a suit thinking she would be invited back for a second interview. She wasn't, and now wants to return the suit on the basis of mistake. 
B)  Ms. Hunt bought some property erroneously thinking that the province was planning to put a highway nearby, even though the seller had never made any such suggestion. She wants out of the contract. 
C)  The parties signed a document that stated the consideration as $1100 instead of the $900 that the buyer and seller had contracted for, but the buyer cannot prove the terms of the original contract. 
D)  Mr. Armstrong accepted an offer by Sidhu, who was selling a "computer program," but learned that they had different understandings of what program was meant. The court cannot say that one interpretation is better than the other. 
E)  Mary contracted to buy "the Acura car" from a collector of cars. He was selling his 2011 model but she thought she was buying the 2012 model. The court, looking at all the evidence, found that his interpretation was the more reasonable.

Question 2

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Accepted Answer

A) True 
 B)False

Question 3

Only when the misrepresentation is truly innocent and without fault is the victim restricted to the remedy of rescission.

Accepted Answer

A) True 
 B)False

Question 4

In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?

Accepted Answer

A)  The Court refused to grant an equitable remedy to correct a mistake that the businessman himself had allowed. 
B)  The Court held that the contract was void due to a lack of consensus. 
C)  The Court held that the contract was unenforceable due to a lack of consensus. 
D)  The Court ordered rectification to correct the mistake in the contract. 
E)  The Court ordered severance due to a lack of intention to be bound to the particular provision. 
A)  The Court refused to grant an equitable remedy to correct a mistake that the businessman himself had allowed. 
B)  The Court held that the contract was void due to a lack of consensus. 
C)  The Court held that the contract was unenforceable due to a lack of consensus. 
D)  The Court ordered rectification to correct the mistake in the contract. 
E)  The Court ordered severance due to a lack of intention to be bound to the particular provision.

Question 5

Explain what is meant by a novation.

Accepted Answer

A novation occurs where two parties have

Question 6

"Misrepresentation involves a misleading statement of fact, not opinion." Discuss the accuracy of that statement.

Accepted Answer

Misrepresentation ca

Question 7

Lars Jepsen, a fisherman from Tofino, regularly sells his catch to packing plants in Steveston. His shipment had already left dock last Monday, but he didn't contract for its sale until yesterday. He sold this shipment for $10,000 to B.C. Packers. Jepsen still owes Sam $3000, part of his commission for having sold one of his waterfront properties. This morning he assigned to Sam, in writing, $3000 of the $10,000 owed under the contract with B.C. Packers. Unknown to Jepsen or B.C. Packers, at the time they made the contract, his transporter had gone down in a storm and all the cargo was lost. Jepsen had no insurance for loss of his boat. Which of the following is correct with respect to his legal position?

Accepted Answer

A)  This is an example of a frustrated contract. 
B)  This is an example of a breach of contract by Jepson with B.C. Packers. 
C)  This is an example of a mistake causing the contract between Jepson and B.C. Packers to be void. 
D)  Because of the frustration, Sam has no claim against either Jepson or B.C. Packers. 
E)  Despite the frustration, Sam can collect the $3000 from B.C. Packers. 
A)  This is an example of a frustrated contract. 
B)  This is an example of a breach of contract by Jepson with B.C. Packers. 
C)  This is an example of a mistake causing the contract between Jepson and B.C. Packers to be void. 
D)  Because of the frustration, Sam has no claim against either Jepson or B.C. Packers. 
E)  Despite the frustration, Sam can collect the $3000 from B.C. Packers.

Question 8

Discuss the concept of an assignment, including an explanation of its significance in the modern business world.

Accepted Answer

A person who is entitled to receive a be

Question 9

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

Accepted Answer

The answer here will likely be shorter,

Question 10

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

Accepted Answer

A)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract. 
B)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burned. 
C)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school. 
D)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake. 
E)  Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable. 
A)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract. 
B)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burned. 
C)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school. 
D)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake. 
E)  Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable.

Question 11

For a misrepresentation to be actionable, it must become a term of the contract.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  A statutory assignment is easier to enforce than an equitable assignment. 
B)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
C)  Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
D)  Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract. 
E)  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. 
A)  A statutory assignment is easier to enforce than an equitable assignment. 
B)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
C)  Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
D)  Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract. 
E)  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.

Question 13

Mr. and Mrs. H were induced to sign a mortgage in favour of M Co. Ltd. by Johnston, a man living with their daughter. Johnston led them to believe that the document was an unimportant amendment to an existing mortgage, when in reality, it was a second substantial mortgage of their home. Neither read the document or questioned it. When the payments were in arrears, the mortgagee took an action for foreclosure (to take their home). Which of the following is correct with respect to the legal position of the parties?

Accepted Answer

A)  If the court finds that Johnston committed a fraudulent misrepresentation, Mr. and Mrs. H will not have to honour the mortgage. 
B)  If the court finds that this is an example of undue influence by Johnston, Mr. and Mrs. H will not have to honour the mortgage. 
C)  If the court finds that this is an example of duress by Johnston, Mr. and Mrs. H will not have to honour the mortgage. 
D)  If Mr. and Mrs. H can show they didn't read the document, they will not have to honour the mortgage contract. 
E)  Assuming there was consideration, they will likely have to honour the mortgage contract even though they didn't read it. 
A)  If the court finds that Johnston committed a fraudulent misrepresentation, Mr. and Mrs. H will not have to honour the mortgage. 
B)  If the court finds that this is an example of undue influence by Johnston, Mr. and Mrs. H will not have to honour the mortgage. 
C)  If the court finds that this is an example of duress by Johnston, Mr. and Mrs. H will not have to honour the mortgage. 
D)  If Mr. and Mrs. H can show they didn't read the document, they will not have to honour the mortgage contract. 
E)  Assuming there was consideration, they will likely have to honour the mortgage contract even though they didn't read it.

Question 14

Novation is the term used when a new party is substituted for an original party to the contract.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Accepted Answer

A)  Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered. 
B)  The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question. 
C)  The defendant has a justifiable defence of non est factum. 
D)  A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement. 
E)  The contract is one requiring "utmost good faith." 
A)  Both parties to a contract agree that they want to change some of its terms and thus apply jointly to the court to have the relevant terms altered. 
B)  The two parties to a contract have made a mutual mistake and one of these parties is asking the court to choose the more reasonable meaning of the terms in question. 
C)  The defendant has a justifiable defence of non est factum. 
D)  A written instrument, because of an obvious mistake, does not embody the unchanged terms of an original oral agreement. 
E)  The contract is one requiring "utmost good faith."

Question 16

Sam agreed to buy property from Joe to build a store of a certain design. Joe, the vendor, was aware of the design and knew that an easement across the back of the property would prevent such a building being erected, but said nothing. Sam purchased the property, later discovered the easement, and learned that Joe knew about it. He sued for misrepresentation. Discuss the likely outcome.

Accepted Answer

Sam will lose. Joe was under no obligati

Question 17

The longer Adolph stayed on his job, the more he hated it. He thought his boss was too demanding. He especially disliked being reprimanded for being late. One afternoon, he was asked by a secretary to take a letter to his boss for his signature. His boss had had an eye operation and was recuperating at home. Adolph got two signatures, one on the letter and one on a note promising to pay Adolph $1000 in consideration for services rendered. His boss was not careless, but couldn't read the papers. What plea or argument, if any, could his boss use to avoid paying on the promissory note?

Accepted Answer

A)  Duress 
B)  Unconscionability 
C)  Shared mistake 
D)  Non est factum 
E)  Rectification 
A)  Duress 
B)  Unconscionability 
C)  Shared mistake 
D)  Non est factum 
E)  Rectification

Question 18

Mr. Jans owned a small building with four offices upstairs and a restaurant on the main floor. Jans contracted with a company, Signs Limited, to construct a sign indicating the names of his tenants and their room numbers. The sign was created and installed by John Monet, an employee of Signs Limited. Signs Limited assigned $500 of the $700 contract price to Ms. Franz, its landlord, when she called and pressed for the rent. Ms. Franz gave notice of the assignment in writing to Jans. Read the following statements, independently of one another, and indicate which is the true statement.

Accepted Answer

A)  If Signs Limited fails to pay Monet's salary, Monet is legally entitled to sue Jans for it because Monet did work for Jans. 
B)  Franz cannot enforce this assignment because the assignment was not in writing, and only assignments in writing will be enforced by the courts. 
C)  If the sign were not done properly, Jans should sue Monet for breach of contract because Monet, as the employee, did the work. 
D)  If the contract were completed satisfactorily, Franz could enforce the assignment, although it is a partial assignment. 
E)  If the assignment is not honoured by Jans, Franz' only recourse is to sue Monet, the employee who actually did the work. 
A)  If Signs Limited fails to pay Monet's salary, Monet is legally entitled to sue Jans for it because Monet did work for Jans. 
B)  Franz cannot enforce this assignment because the assignment was not in writing, and only assignments in writing will be enforced by the courts. 
C)  If the sign were not done properly, Jans should sue Monet for breach of contract because Monet, as the employee, did the work. 
D)  If the contract were completed satisfactorily, Franz could enforce the assignment, although it is a partial assignment. 
E)  If the assignment is not honoured by Jans, Franz' only recourse is to sue Monet, the employee who actually did the work.

Question 19

Discuss what happens when the parties to a contract make mistakes with respect to what they have agreed.

Accepted Answer

This question requires a review of the w

Question 20

Al sells gravel to Bob on credit, and Bob sells it to Chuck, an innocent purchaser. Then Bob runs away with the money, without paying Al. Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

Accepted Answer

A)  Al 
B)  Bob 
C)  Chuck 
D)  Al and Bob 
E)  Bob and Chuck 
A)  Al 
B)  Bob 
C)  Chuck 
D)  Al and Bob 
E)  Bob and Chuck

In which scenario will the court likely find the contract void on the grounds of mistake?

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Only when the misrepresentation is truly innocent and without fault is the victim restricted to the remedy of rescission.

In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?

Explain what is meant by a novation.

"Misrepresentation involves a misleading statement of fact, not opinion." Discuss the accuracy of that statement.

Discuss the concept of an assignment, including an explanation of its significance in the modern business world.

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

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

For a misrepresentation to be actionable, it must become a term of the contract.

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

Novation is the term used when a new party is substituted for an original party to the contract.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Discuss what happens when the parties to a contract make mistakes with respect to what they have agreed.

Al sells gravel to Bob on credit, and Bob sells it to Chuck, an innocent purchaser. Then Bob runs away with the money, without paying Al. Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

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

In which scenario will the court likely find the contract void on the grounds of mistake?

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Only when the misrepresentation is truly innocent and without fault is the victim restricted to the remedy of rescission.

In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?

Explain what is meant by a novation.

"Misrepresentation involves a misleading statement of fact, not opinion." Discuss the accuracy of that statement.

Discuss the concept of an assignment, including an explanation of its significance in the modern business world.

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

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

For a misrepresentation to be actionable, it must become a term of the contract.

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

Novation is the term used when a new party is substituted for an original party to the contract.

Which of the following situations gives rise to the application of the equitable remedy of rectification?

Discuss what happens when the parties to a contract make mistakes with respect to what they have agreed.

Al sells gravel to Bob on credit, and Bob sells it to Chuck, an innocent purchaser. Then Bob runs away with the money, without paying Al. Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

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