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?
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.
Correct Answer:
Verified
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