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Chapter 18 Self-test questions
Return to JC Smith's The Law of Contract 2e student resources
Chapter 18 Self-test questions
Undue influence
Quiz Content
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not completed
.
What must
C
prove for a claim in actual undue influence?
That a relationship of undue influence existed at the time of his entering into contract
correct
incorrect
Primary facts that lead to a rebuttable presumption of the facts necessary to ground an undue influence claim
correct
incorrect
An inequality of bargaining power between
C
and the other party to the contract, with a resulting contract that is in favour of the latter.
correct
incorrect
None of the options given is correct.
correct
incorrect
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not completed
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For what reason was Miss Allcard not able to recover her property in
Allcard v Skinner?
There was no unconscionable conduct on the part of the defendant
correct
incorrect
The claimant had given sufficient consent
correct
incorrect
There was a delay in bringing the claim
correct
incorrect
She had received independent advice
correct
incorrect
*
not completed
.
A
is the President of her College Ball Committee.
A
books a number of performers for the ball from one agent,
B
. After further discussions with the ball committee,
A
decides to book another performer through another agent.
B
discovers this and tells
A
that he will inform
A
's committee of the discount
B
provided to
A,
that
A
decided to keep for herself, if
A
does not book all subsequent acts through
B.
What claim may
A
have against
B
if
B
wishes to enforce the contract?
Presumed undue influence
correct
incorrect
Actual undue influence
correct
incorrect
Presumed undue influence or duress
correct
incorrect
Actual undue influence or duress
correct
incorrect
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not completed
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Which of the following is not automatically a relationship of trust and confidence?
Parent and child
correct
incorrect
Husband and wife
correct
incorrect
Solicitor and client
correct
incorrect
Trustee and beneficiary
correct
incorrect
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not completed
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What must a defendant prove to rebut a claim of presumed undue influence?
A reasonable explanation for the transactions exists
correct
incorrect
On the balance of probabilities, the claimant entered the transaction of her own free will
correct
incorrect
That the claimant had independent legal advice
correct
incorrect
All of the answers given are correct
correct
incorrect
*
not completed
.
When would a bank not be put 'on inquiry' for undue influence?
Where a loan is advanced to a husband and wife jointly
correct
incorrect
Where the wife secures her husband's company's debts and the wife has a shareholding in the company
correct
incorrect
Where the wife secures her husband's company's debts and the wife is an officer of the company
correct
incorrect
All of the options given are correct
correct
incorrect
*
not completed
.
Mr Allan wishes to obtain a loan for his company from Big Bucks Bank, for which he asks Mrs Allan to be a surety. Big Bucks Bank, realising that it is put on notice of potential undue influence, instructs a solicitor to explain the implications of the transaction to Mrs Allan. Big Bucks Bank later discovers that the solicitor also acts for Mr Allan. What steps should Big Bucks Bank take?
Instruct a new solicitor to inform Mrs Allan of the transaction
correct
incorrect
Cancel any loan being made to Mr Allan
correct
incorrect
Ask Mr Allan to find a new surety
correct
incorrect
Ask for written confirmation from the solicitor that the transaction has been independently explained to Mrs Allan
correct
incorrect
*
not completed
.
A
becomes a surety for her a loan for her husband's company, in which
A
holds shares.
A
does not receive legal advice from a solicitor.
A
's husband defaults on the loan,
A
stands to lose £6000 as a result.
A
claims that she entered into the transaction under undue influence. If the claim is successful, what remedy might
A
be entitled to?
Rescission only
correct
incorrect
Damages to reflect the administration charges of entering into the transaction.
correct
incorrect
Rescission and damages to reflect the administration charges of entering into the transaction
correct
incorrect
Rescission, damages to reflect the administration charges of entering into the transaction, and damages to reflect the lost opportunity of using money elsewhere.
correct
incorrect
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