Question 1

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

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Question 2

"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 3

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 4

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

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This principle means that the assignee cannot have more rights than the assignor had when transferring the rights or property. The assignee simply takes on the same rights and obligations as the assignor had.

Question 5

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

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Question 6

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

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Question 7

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

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Question 8

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

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Question 9

Distinguish between duress and undue influence.

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Question 10

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

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Question 11

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

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Negotiable instruments such as checks, promissory notes, and bills of exchange can be transferred to third parties, who may obtain better rights than the original parties had. For example, if a person writes a check to pay a debt and the creditor endorses the check to a third party, that third party may have stronger rights to collect the funds from the person who wrote the check than the creditor did.

Question 12

Explain what is meant by the parol evidence rule.

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Question 13

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

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Question 14

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

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Question 15

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 16

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 17

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

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Question 18

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 19

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

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Question 20

"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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Quiz 8: Factors Affecting the Contractual Relationship