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Question 1Which one of the following statements is incorrect? a) Misrepresentations cover false statements and half-truths. b) A statement which is true when it is made but becomes false before the contract is completed may amount to a misrepresentation. c) To be actionable the misrepresentation must be the only reason that persuaded the other party to enter into the contract. d) In English law there is no duty to disclose information before a contract unless the contract is one of the utmost good faith or a special relationship of trust exists between the parties. . Question 2Misrepresentation in a contract makes the contract: a) Void. b) Illegal. c) Voidable. d) Unenforceable. Question 3An operative mistake in a contact makes the contract: a) Void. b) Illegal. c) Voidable. d) Unenforceable. Question 4What is meant by a common mistake in the law of contract? a) A mistake that is often made. b) Where both parties make the same mistake. c) Where only one of the parties makes a mistake. d) Where the parties are at cross purposes. Question 5George buys a vase from Louis for £20. Louis believes the vase is worthless but George knows it is valuable. George later sells it for £10,000. What legal action can Louis take against George? a) Sue George for the return of the vase as the contract is void for unilateral mistake. b) Sue George for breach of contract. c) Louis has no legal remedy. d) Sue George for the return of the vase as the contract is void for common mistake. Question 6The possible remedies for negligent misrepresentation are: a) Rescission and damages. b) Damages only. c) Rescission only. d) Specific performance. Question 7What does rescission of a contract mean? a) The contract is set aside and the parties are put back in the same position as if the contract had never been entered into. b) The parties are put into the same position as if the contract had been completed. c) Monetary compensation. d) A false statement of fact. Question 8Which of the following statements is incorrect? a) Duress is where a party has entered into a contract after one party has threatened physical violence or serious economic coercion. b) The presence of duress makes a contract void. c) Undue influence is where a party has entered into a contract after excessive persuasion. d) The presence of undue influence makes a contract voidable. Question 9When will the courts presume that there has been undue influence is the signing of a contract? a) Where there is a fiduciary relationship with the party against whom the undue influence is alleged. b) In all contracts made between a married couple (or a co-habiting partner). c) The courts will not presume undue influence. The party alleging undue influence must prove it has occurred. d) Where the contract is oral. Question 10Sally contracts with her employer that she will have a salary of £35,000 per annum plus a cash payment of £20,000 at the end of the year which will not be declared thereby avoiding tax. Sally's employer has now refused to pay her the £20,000. Can Sally take legal action to enforce the payment of £20,000? a) Yes, Sally has completed the work as agreed. b) Yes, provide the contract is in writing. c) No, the contract is void for illegality. d) No, the contract is void for mistake. What is the difference between a unilateral mistake and a mutual mistake?A mutual mistake occurs when both parties have an erroneous belief while a unilateral mistake only involves the misunderstanding of one party.
Which of the following is true when there is a mutual mistake in a contract?A mutual mistake occurs when the parties to a contract are both mistaken about the same material fact within their contract. They are at cross-purposes. There is a meeting of the minds, but the parties are mistaken. Hence the contract is voidable.
What are the principles of bilateral mistake and the unilateral mistake?Mistake of Fact
This is often referred to as mutual or common mistakes. A bilateral mistake can usually be voided by both parties of the contract because both parties are acting under false information. Unilateral mistake of fact: When only one party is mistaken on the terms of the contract.
What is the rule about a unilateral mistake in a contract quizlet?Terms in this set (54) A unilateral mistake does not void a contract. Courts can rescind a contract even though the person making the false assertion is entirely innocent of any intentional deception.
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