Len's new secretary came in and asked him to sign four letters that he said concerned general office matters. One of the "letters" was, in fact, a cheque for $500, payable to the secretary. The secretary cashed the cheque at his bank, and when his bank presented the cheque for payment, Len refused to pay it. He said he had been tricked and it was all a mistake. On these facts, which of the following is true?
A) Len may be able to avoid his obligation on the cheque on the basis of non est factum.
B) Len would be obligated to honour the cheque no matter how careful he was.
C) Len may be able to avoid his obligation on the cheque on the basis of duress.
D) Len may be able to avoid his obligation on the cheque on the basis of unconscionability.
E) Even if he was careless, Len will not have to honour the cheque.

Question

Quizplus · Accepted Answer

Len may be able to avoid his obligation on the cheque on the basis of non est factum, which applies when a person signs a document not understanding its nature due to a significant mistake, as long as they were not careless.

Len's New Secretary Came in and Asked Him to Sign