Question 1

In the case of a contract for the sale of goods which is rendered void for mistake,a third party who has subsequently acquired those goods will not be entitled to retain them.

Accepted Answer

A) True 
 B)False

Question 2

Identify the statement which qualifies as a representation.

Accepted Answer

A) Statement of opinion. 
B) Statement of fact. 
C) Statement as to future conduct or intention. 
D) Statement of law. 
A) Statement of opinion. 
B) Statement of fact. 
C) Statement as to future conduct or intention. 
D) Statement of law.

Question 3

Which of the following situations appears to involve a 'mutual mistake'?

Accepted Answer

A) X purchased goods on credit from Y,believing Y to be Z.Y was aware of X's mistake. 
B) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
C) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
D) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y. 
A) X purchased goods on credit from Y,believing Y to be Z.Y was aware of X's mistake. 
B) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
C) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
D) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y.

Question 4

Which of the following situations appears to involve a 'unilateral mistake'?

Accepted Answer

A) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y. 
B) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
C) X purchased goods on credit from Y,believing Y to be Z.Y was aware of X's mistake. 
D) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
A) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y. 
B) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
C) X purchased goods on credit from Y,believing Y to be Z.Y was aware of X's mistake. 
D) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead.

Question 5

The test for unconscionability is the special disability of the weaker party.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is the best description of 'non est factum'?

Accepted Answer

A) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
B) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
C) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
D) One of the parties to a contract is mistaken as to the nature of the document which they have signed. 
A) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
B) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
C) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
D) One of the parties to a contract is mistaken as to the nature of the document which they have signed.

Question 7

Identify the scenario which qualifies as a 'unilateral mistake'.

Accepted Answer

A) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
B) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
C) One of the parties is mistaken as to the nature of the document which they have signed. 
D) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
A) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
B) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
C) One of the parties is mistaken as to the nature of the document which they have signed. 
D) Both parties have made the same mistake about the existence or identity of the subject matter of the contract.

Question 8

Which of the following situations appears to involve 'duress'?

Accepted Answer

A) A property developer promised their accountant a share in a business venture in return for a reduction in their bill. 
B) A woman gave all of her property to the religious order of which she was a member. 
C) A man induced another to sign a contract by telling him that if he did not,he would report his son to the police for committing a criminal offence. 
D) An elderly Italian couple sign a mortgage in favour of a Bank guaranteeing their son's debts;the Bank manager knows the couple are unaware of the son's financial difficulties. 
A) A property developer promised their accountant a share in a business venture in return for a reduction in their bill. 
B) A woman gave all of her property to the religious order of which she was a member. 
C) A man induced another to sign a contract by telling him that if he did not,he would report his son to the police for committing a criminal offence. 
D) An elderly Italian couple sign a mortgage in favour of a Bank guaranteeing their son's debts;the Bank manager knows the couple are unaware of the son's financial difficulties.

Question 9

Which of the following is NOT one of the activities prohibited under the Australian Consumer Law?

Accepted Answer

A) Representations as to the future. 
B) False or misleading representations about past conduct. 
C) Misleading conduct relating to employment. 
D) False or misleading representations in relation to land. 
A) Representations as to the future. 
B) False or misleading representations about past conduct. 
C) Misleading conduct relating to employment. 
D) False or misleading representations in relation to land.

Question 10

Which of the following relationships will NOT give rise to a presumption of undue influence?

Accepted Answer

A) Religious advisor and devotee. 
B) Doctor and patient. 
C) Parent and child. 
D) Husband and wife. 
A) Religious advisor and devotee. 
B) Doctor and patient. 
C) Parent and child. 
D) Husband and wife.

Question 11

Which of the following statements is the best description of an 'innocent' misrepresentation?

Accepted Answer

A) Silence or non-disclosure about a fact which creates a false impression. 
B) A false statement of fact made knowingly,which the other person relies upon and suffers loss. 
C) A false statement of fact made with the belief that it is true,which the other person relies upon and suffers loss. 
D) A false statement of fact made carelessly,which the other person relies upon and suffers loss. 
A) Silence or non-disclosure about a fact which creates a false impression. 
B) A false statement of fact made knowingly,which the other person relies upon and suffers loss. 
C) A false statement of fact made with the belief that it is true,which the other person relies upon and suffers loss. 
D) A false statement of fact made carelessly,which the other person relies upon and suffers loss.

Question 12

Which of the following statements is the best description of 'unconscionability'?

Accepted Answer

A) The improper use of fraudulent information. 
B) The improper use of violence or of threats of violence to induce a contract. 
C) The improper use of a position of influence or power to induce a contract. 
D) The improper use of a superior bargaining position to induce a contract. 
A) The improper use of fraudulent information. 
B) The improper use of violence or of threats of violence to induce a contract. 
C) The improper use of a position of influence or power to induce a contract. 
D) The improper use of a superior bargaining position to induce a contract.

Question 13

The reasonable person standard is applicable where mutual mistake has been pleaded.

Accepted Answer

A) True 
 B)False

Question 14

In Phillips v Brooks [1919] 2 KB 243 which of the various parties was successful in establishing that the contract was not void for mistake?

Accepted Answer

A) The pawnbroker. 
B) The jeweller. 
C) The plaintiff. 
D) Sir George Bullough. 
A) The pawnbroker. 
B) The jeweller. 
C) The plaintiff. 
D) Sir George Bullough.

Question 15

In Commercial Bank of Australia v Amadio (1983)151 CLR 447 which of the following was NOT a reason why the bank was considered to have acted unconscionably?

Accepted Answer

A) The bank took advantage of the Amadios' special disabilities. 
B) It did not insist that the parents obtain separate independent advice. 
C) The bank exercised economic duress. 
D) The bank did not explain the real financial position of the son whom his parents were trying to help. 
A) The bank took advantage of the Amadios' special disabilities. 
B) It did not insist that the parents obtain separate independent advice. 
C) The bank exercised economic duress. 
D) The bank did not explain the real financial position of the son whom his parents were trying to help.

Question 16

Which of the following situations appears to involve 'Undue Influence'?

Accepted Answer

A) A woman gave all of her property to the religious order of which she was a member. 
B) The directors of a company issued a prospectus which contained information that was incorrect. 
C) A man induced another to sign a contract by telling him that if he did not,he would report his son to the police for committing a criminal offence. 
D) An elderly Italian couple sign a mortgage in favour of a Bank guaranteeing their son's debts;the Bank manager knows the couple are unaware of the son's financial difficulties. 
A) A woman gave all of her property to the religious order of which she was a member. 
B) The directors of a company issued a prospectus which contained information that was incorrect. 
C) A man induced another to sign a contract by telling him that if he did not,he would report his son to the police for committing a criminal offence. 
D) An elderly Italian couple sign a mortgage in favour of a Bank guaranteeing their son's debts;the Bank manager knows the couple are unaware of the son's financial difficulties.

Question 17

To establish duress,the onus is on the coerced party to show it was the only reason they entered into the contract.

Accepted Answer

A) True 
 B)False

Question 18

The 'mutual mistake' concept is best described by which of the following scenarios?

Accepted Answer

A) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
B) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
C) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
D) One of the parties is mistaken as to the nature of the document which they have signed. 
A) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
B) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
C) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
D) One of the parties is mistaken as to the nature of the document which they have signed.

Question 19

The person raising the defence of non est factum has the onus of proof.

Accepted Answer

A) True 
 B)False

Question 20

A common mistake involves a common error as to some fundamental fact.

Accepted Answer

A) True 
 B)False

Exam 11: Genuine Consent

In the case of a contract for the sale of goods which is rendered void for mistake,a third party who has subsequently acquired those goods will not be entitled to retain them.

Identify the statement which qualifies as a representation.

Which of the following situations appears to involve a 'mutual mistake'?

Which of the following situations appears to involve a 'unilateral mistake'?

The test for unconscionability is the special disability of the weaker party.

Which of the following statements is the best description of 'non est factum'?

Identify the scenario which qualifies as a 'unilateral mistake'.

Which of the following situations appears to involve 'duress'?

Which of the following is NOT one of the activities prohibited under the Australian Consumer Law?

Which of the following relationships will NOT give rise to a presumption of undue influence?

Which of the following statements is the best description of an 'innocent' misrepresentation?

Which of the following statements is the best description of 'unconscionability'?

The reasonable person standard is applicable where mutual mistake has been pleaded.

In Phillips v Brooks [1919] 2 KB 243 which of the various parties was successful in establishing that the contract was not void for mistake?

In Commercial Bank of Australia v Amadio (1983)151 CLR 447 which of the following was NOT a reason why the bank was considered to have acted unconscionably?

Which of the following situations appears to involve 'Undue Influence'?

To establish duress,the onus is on the coerced party to show it was the only reason they entered into the contract.

The 'mutual mistake' concept is best described by which of the following scenarios?

The person raising the defence of non est factum has the onus of proof.

A common mistake involves a common error as to some fundamental fact.

Legal Foundations

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Agency

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

Intellectual Property

Ethics and Business Practice

Criminal Law in a Business Context

Competition Law

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

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