Factors Affecting Contract Enforceability Quiz
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Questions and Answers

In what kind of contracts is omission likely to amount to misrepresentation?

  • Contracts where disclosure is a statutory requirement
  • Contracts of utmost good faith, e.g., insurance contracts (correct)
  • Contracts with no specified terms
  • Contracts involving innocent misrepresentation

    • Which situation will not qualify as innocent misrepresentation?

  • The maker had no means of ascertaining that the statement was false
  • The maker believed in the truth of the false statement
  • The false statement was genuinely believed to be true
  • The maker intentionally made a false statement (correct)

    • What did the plaintiff in Andrews v. Mockford rely on when entering into the contract?

  • Untrue statements in a company's prospectus (correct)
  • Statements made by a third party
  • Information unrelated to the company's prospectus
  • True statements in a company's prospectus

    • When can the innocent party sue for indemnity in cases of innocent misrepresentation?

    <p>When the innocent party experienced direct financial loss due to the misrepresentation</p> Signup and view all the answers

    What was the outcome of the case Derry v. Peek?

    <p>The innocent party could recover direct financial losses for innocent misrepresentation</p> Signup and view all the answers

    Why was the defendant in Oscar Chess v. Williams deemed to have innocently misrepresented the statement?

    <p>The defendant had no means of verifying the truth of the false statement</p> Signup and view all the answers

    What is misrepresentation in relation to a contract?

    <p>A false representation made by a party with the intention of inducing another into a contract</p> Signup and view all the answers

    Under what condition would an opinion constitute misrepresentation?

    <p>If the opinion is not honestly held or based on unverified facts within the maker's knowledge</p> Signup and view all the answers

    In the context of contracts, what renders a contract avoidable at the option of the innocent party?

    <p>The reliance of the innocent party on a false statement of fact</p> Signup and view all the answers

    How does undue influence contribute to the enforceability of a contract?

    <p>By allowing one party to exert unfair pressure on another</p> Signup and view all the answers

    What differentiates a void contract from an avoidable contract?

    <p>A void contract is unenforceable while an avoidable contract is enforceable unless avoided</p> Signup and view all the answers

    Which factor may render a contract void or avoidable?

    <p>Undue influence</p> Signup and view all the answers

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