Len's new secretary came in and asked him to sign four letters that she 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 her bank, and when her 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) He may be able to avoid his obligation on the cheque on the basis of unconscionability.
B) He would be obligated to honour the cheque no matter how careful he was.
C) Even if he was careless, he will not have to honour the cheque.
D) He may be able to avoid his obligation on the cheque on the basis of duress.
E) He may be able to avoid his obligation on the cheque on the basis of non est factum.

Question

Quizplus · Accepted Answer

Len may be able to avoid his obligation on the cheque on the basis of non est factum. Non est factum is a defense that applies where a party signed a document under a mistaken belief as to its character or nature. In this case, Len signed the document thinking it was a letter concerning general office matters, but it turned out to be a cheque. He may argue that he did not understand the legal implications of what he was signing, and therefore, the document is not his legal obligation.

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