Undue Influence in Contract Law
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Questions and Answers

A false statement of past or present fact made by one party to another before or at the time of the contract is a definition of duress.

False

A false statement of fact(s) must be made in writing to be considered misrepresentation.

False

Designed concealment is a type of misrepresentation where the person is under a duty to disclose information.

True

Active concealment is the same as non-disclosure.

<p>False</p> Signup and view all the answers

In the case of Dibley v Furter 1951, the court held that F was not liable to D for non-disclosure of the graveyard.

<p>False</p> Signup and view all the answers

A misrepresentation must be made with the intention of persuading the other party to conclude the contract.

<p>True</p> Signup and view all the answers

Disclosure is obligatory in all circumstances.

<p>False</p> Signup and view all the answers

A warranty or contractual term is considered a misrepresentation.

<p>False</p> Signup and view all the answers

An opinion or statement about the future can be considered a misrepresentation.

<p>False</p> Signup and view all the answers

Non-disclosure of a fact is always actionable.

<p>False</p> Signup and view all the answers

A person who has relied on a misrepresentation can cancel the contract or sue for reduction of purchase price.

<p>True</p> Signup and view all the answers

There is a general duty on a party negotiating a contract to reveal information known to them that may influence the mind of the other party.

<p>False</p> Signup and view all the answers

A party is always considered responsible for the other party's ignorance if they do not disclose information.

<p>False</p> Signup and view all the answers

A contract requires parties to work together in a relationship of trust and confidence, and therefore, omission of information is actionable.

<p>True</p> Signup and view all the answers

A misrepresentation must be made by a party to the contract or their agent to be considered actionable.

<p>True</p> Signup and view all the answers

In the case of non-disclosure, a reasonable person would not have been persuaded against entering into a contract if disclosure had been made.

<p>False</p> Signup and view all the answers

A party has a duty to inform by operation of a rule of law, such as in an insurance policy.

<p>True</p> Signup and view all the answers

The onus is on the influential party to prove undue influence occurred.

<p>False</p> Signup and view all the answers

Restitutio in integrum is a remedy available to the guilty party.

<p>False</p> Signup and view all the answers

If the innocent party elects to rescind the contract, it terminates immediately.

<p>False</p> Signup and view all the answers

The innocent party has the right to set aside the legal consequences of the contract.

<p>True</p> Signup and view all the answers

The innocent party is not bound by the contract's terms if they choose to uphold it.

<p>False</p> Signup and view all the answers

Both parties have a duty to restore and/or return any performance made under the contract.

<p>True</p> Signup and view all the answers

Intentional misrepresentation renders a contract voidable.

<p>False</p> Signup and view all the answers

Negligent misrepresentation can lead to the enforcement of the contract.

<p>True</p> Signup and view all the answers

Innocent misrepresentation allows for a damages claim.

<p>False</p> Signup and view all the answers

Misrepresentation can only be made verbally.

<p>False</p> Signup and view all the answers

Active concealment is a type of non-disclosure.

<p>False</p> Signup and view all the answers

Misrepresentation must be made in good faith.

<p>False</p> Signup and view all the answers

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