Question 1

What is the difference between a void and a voidable contract?

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Question 2

What is rectification? Explain its use by courts in situations involving mistake in law.

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Question 3

What is an entirety clause?

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Question 4

Jack really needs money to pay off his mortgage before the bank forecloses.He goes to "Shark" who agrees to lend Jack the money if Jack will pay 100 percent interest.This is an example of undue influence.

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Undue influence refers to a situation where one party uses their power, trust, or authority to influence another party to enter into a contract on disadvantageous terms. In this case, Shark is taking advantage of Jack's desperate situation by charging him 100 percent interest, which is an unreasonable and exploitative condition.

Question 5

What are the two main types of mistake in contract law?

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Question 6

A guarantor is a person who agrees to pay the debts of another person but only if that person dies.

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A guarantor is a person who agrees to pay the debts of another person if that person is unable to pay for any reason, not just in the case of death.

Question 7

Explain why an insurance contract needs the utmost good faith.

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Question 8

When it comes to deciding whether or not a contract is void,the common law knows no half measures.Explain.

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Question 9

A contract entered into by reason of a mistake as to identity of a third party usually has an element of fraud.Explain.

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Question 10

Why are public corporations required to give the investing public information about any new issue of shares in a statement called a prospectus?

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Question 11

Explain the concept of rescission as it relates to mistake in contract law.

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Question 12

Independent Legal Advice must come from a lawyer not associated with the transaction or the other parties.

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Independent Legal Advice should come from a lawyer who has no connection to the transaction or the parties involved in it to ensure unbiased and impartial advice.

Question 13

What remedies are available to the innocent parties if they are the victims of an innocent misrepresentation? What is the remedy if they are the victims of a fraudulent misrepresentation?

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Question 14

At times,the concepts of undue influence and duress may overlap.Explain.

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Question 15

What must an innocent party to a contract show in order to rely on the defence of non est factum?

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Question 16

What is a material event?

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Question 17

Exerting domination over the mind of another party so as to make him or her enter into a contract constitutes duress.

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Duress involves coercion or threats of harm to force someone into a contract, not merely exerting domination over their mind.

Question 18

Explain the meaning of rescission.

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Question 19

Explain the importance of independent legal advice.

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Question 20

The threat by one party that unless the other party enters into the contract,he will harm the other's child constitutes undue influence.

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The scenario described is more accurately considered duress, as it involves a threat of harm to coerce someone into a contract, rather than undue influence, which involves taking advantage of a position of power over someone to unduly influence their decisions.

Quiz 9: Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation