Question 1

"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.

Accepted Answer

The answer of "A misrepresentation involves one person making a...

Question 2

A unilateral mistake refers a breach of a unilateral contract.

Accepted Answer

A unilateral mistake refers to an error made by one party in a contract and does not necessarily constitute a breach of the contract. A breach occurs when one party fails to fulfill their obligations under the contract.

Question 3

Distinguish between duress and undue influence.

Accepted Answer

The answer of Distinguish between duress and undue influence....

Question 4

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

Accepted Answer

Duress occurs when someone uses force or threats to make another person do something against their will, not when someone takes advantage of another's vulnerability due to a special relationship. The latter would fall under the category of undue influence.

Question 5

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

Non est factum is a common law doctrine that allows a party to avoid a contract if they can prove that they did not understand the nature and significance of the contract they signed due to a mistake. However, the mistake must be fundamental and go to the entire nature of the agreement, not just some aspect of it.

Question 6

Negotiable instruments can sometimes convey better rights than existed between the original parties.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Accepted Answer

Negotiable instruments, such as checks or promissory notes, often have legal protections and presumptions that provide greater rights to the holder than were held by the original parties to the instrument.

Question 7

Undue influence takes place when one person uses violence to force another to enter into a contract.

Accepted Answer

Undue influence occurs when one party uses their position of power to unfairly influence the other party to enter into a contract that is not in their best interest, but it does not involve physical violence.

Question 8

Where the misrepresentation is innocent, explain the remedies available to the victim.

Accepted Answer

The answer of Where the misrepresentation is innocent, explain the...

Question 9

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

Accepted Answer

The answer of An assignee is "subject to the equities",...

Question 10

Explain what remedies are available to the victim where misrepresentation becomes a term of the contract.

Accepted Answer

The answer of Explain what remedies are available to the...

Question 11

Indicate under which circumstances the remedy of rescission might not be available.

Accepted Answer

The answer of Indicate under which circumstances the remedy of...

Question 12

An assignee can be in no better position than was the assignor.

Accepted Answer

This principle of assignability means that the assignee does not receive any greater rights or benefits than those possessed by the assignor at the time of the assignment. Essentially, the assignee steps into the shoes of the assignor and assumes their rights and obligations.

Question 13

What is the significance of determining that the misrepresentation was negligent rather than innocent?

Accepted Answer

The answer of What is the significance of determining that...

Question 14

"Where fraudulent misrepresentation is involved, the victim can obtain rescission and/or damages but where innocent misrepresentation is involved, the only remedy is damages." Discuss the accuracy of that statement.

Accepted Answer

The answer of "Where fraudulent misrepresentation is involved, the victim...

Question 15

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

Accepted Answer

The answer of Distinguish between innocent and fraudulent misrepresentation, indicating...

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

The answer of Sam agreed to buy property from Joe...

Question 17

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

Accepted Answer

The answer of "Misrepresentation involves a misleading statement of fact,...

Question 18

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.

Accepted Answer

When a contract is established to have been made under undue influence, it is typically considered voidable at the option of the victim, not automatically void. This means the victim can choose to affirm or void the contract.

Question 19

The doctrine of privity of contract is unique in that is has no exceptions.

Accepted Answer

The doctrine of privity of contract does have exceptions, such as assignments and third-party beneficiary contracts.

Question 20

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

Accepted Answer

To be considered unconscionable, both vulnerability of the victim and an unfair bargain must be present in the contract.

Quiz 8: Factors Affecting the Contractual Relationship