Question 1

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

Accepted Answer

The principle that an assignee cannot be in a better position than the assignor is a fundamental concept in contract law, indicating that the assignee only acquires the rights and interests that the assignor originally had, no more.

Question 2

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

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Question 3

Distinguish between duress and undue influence.

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Question 4

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

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Question 5

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

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Question 6

"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.

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Question 7

Indicate three situations where the courts will presume a relationship to involve undue influence.

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Question 8

Outline the restrictions on the ability of a person to claim non est factum.

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Question 9

Rescission of contract citing innocent misrepresentation on behalf of one of the parties is not available in four situations, list and describe these.

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Question 10

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

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Question 11

"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.

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Question 12

What's the effect of a court determining that undue influence has been present in a contractual relationship?

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Question 13

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

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Question 14

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

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Question 15

Explain what is meant by the parol evidence rule.

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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.

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Question 17

What is the term used to describe a claim that results in a court declaring a contract void because a party is unaware of the nature of the contract?

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Question 18

Negotiable instruments can sometimes convey better rights than existed between the original parties.

Accepted Answer

Negotiable instruments operate under the principle of "holder in due course," which allows a person who acquires the instrument in good faith and for value to obtain certain rights exceeding those of the original parties, including freedom from many defenses that could be raised against the original party.

Question 19

The facts of a case heard by the Supreme Court of Canada are as follows: Mr. and Mrs. H were induced to sign a mortgage in favour of M.C.R. 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 on 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). Mr. and Mrs. H. pleaded non est factum. Would this defence succeed? Why or why not?

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Question 20

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

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Quiz 8: Factors Affecting the Contractual Relationship