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 determining that the misrepresentation was negligent rather than innocent?

Where the misleading statement being complained of was an expression of opinion rather than fact, it is not actionable, even if the person making the statement was an expert.

Joe owned an apartment building and entered into a contract with Sam whereby Sam would operate that apartment building, but the proceeds from the rent and profits would be distributed among Joe's children. This is an example of what kind of an agreement?

The original party cannot enforce a contract that bestows benefits on an outsider.

Jenny went to the store and asked to see a Bluetooth headset. The salesman brought out a set that he said had all the features that she wanted. After looking at the price tag and little else, she said she would think about it. The salesman said that this was the most popular model sold, that they sold 1000 of them during the World Series alone, that it had the highest rating in Consumer Reports, and that he only had that one left. Jenny bought it. Later she found out that all the statements made to her by the salesman were false, including the statement that the headset had all the features that she wanted, because it did not have noise suppression. Which of the following is true?

Gomer paid the seller of a car with a worthless cheque. He then sold the car to an innocent person who paid him good consideration. Gomer took the money and left the country. The original seller found out who had the car and wanted it back. Who is entitled to the car if the court holds that the contract between the original seller and Gomer is voidable?

Kassem was a real estate agent with his own firm. Because his agency was new in a competitive field, he hired the company of Barrett and Barrett Ltd. to advise on an advertising strategy and to design ads for the newspaper and for brochures. Jack Barrett, senior employee, was handling the market research, and the employee Armstrong was doing the illustrations. When the work was complete, the ads went to press. Unfortunately, after the printing, it was discovered that in all the ads and in every brochure "Kassem" was spelled "Kassim." Armstrong had made the mistake in his copy. On these facts, which of the following is true?

A misrepresentation must be a false statement of fact unless it is a statement by an expert.

Explain what is meant by rectification.

"A misrepresentation involves one person making a false statement of fact that misleads another and induces that person to enter into the contract." Discuss the accuracy of this statement.

On September 1, Beeton contracted to sell $4000 worth of specified Kenyan lumber to Cairns. Beeton expected the arrival of the lumber soon, so the delivery date was set for September 8. On September 5, Beeton assigned, in writing, his contractual right to receive the $4000 to his bank, which was pressing him to reduce his $17,000 debt. The bank sent a written notice to Cairns instructing him to forward the $4000 to the bank and not to pay Beeton directly. Unknown to either Beeton or Cairns, the lumber had been lost at sea in August, before they had even entered the contract. On these facts, which of the following is true?

Duress takes place when one person takes advantage of another's vulnerability because of a special relationship with that person.

When two parties are involved in a 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?

Back in the days when people in Vancouver sold houses as houses and not for demolition, Mrs. Reid prepared her house for the market by contracting with Silversteps Ltd. to have her front steps replaced for the sum of $2800. Warren, an employee of the company, worked for days framing the stairs and pouring the concrete. Unfortunately, he had done the framing wrong and, in addition, the concrete mix was faulty, so all of his efforts were in vain, and the stairs were not useable. On these facts, which of the following is true?

When it has been clearly established that one of the parties to the contract has been the victim of undue influence, that contract is void.

With respect to having the court set aside a contract on the basis of undue influence, which of the following is false?

A unilateral mistake refers to a breach of a unilateral contract.

What is meant by the term "non est factum"?

In what way is a trust an exception to the privity rule?