Chapter 19 End of Chapter Questions

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. Which of the following was not a factor set out by the court in Fry v Lane as a necessary element for a contract to be set aside for unconscionability?

The party is poor and ignorant. correct incorrect

The party has received no independent advice. correct incorrect

The contract was not fair, just and reasonable. correct incorrect

The contract of sale was at a considerable undervalue. correct incorrect

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. A, a 70-year old woman, inherited a car from her late husband. The circumstances of his death meant that A was left with little and had to leave the home she lived in with her husband. A attempted to sell the car to earn money for a new home, but did not know of the value of the car or indeed anything about it. B, a car dealer, met A and offered to buy the car at a reasonable price. As the contract was negotiated, B inserted terms into the contract which required A to have the engine replaced, the car re-sprayed and new seat covers designed. B told A that this was so the car was usable on the road. A signed the contract of sale. Later on, A discovered from her husband's best friend that the car had recently been upgraded and B's demands were not at all necessary. A seeks to have the contract set aside for unconscionability. Which of the following requirements of her claim will not be made out?

A is not sufficiently poor. correct incorrect

The contract is not sufficiently undervalued as it is reasonably priced. correct incorrect

A is not sufficiently ignorant. correct incorrect

None of the options given are correct. correct incorrect

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. Undue influence deals exclusively with the manner in which the contract was concluded, whilst unconscionability deals exclusively with the substance of the contract. True or False?

True correct incorrect

False correct incorrect

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. In Lloyds Bank Ltd v Bundy, Lord Denning abstracted an overriding principle of inequality of bargaining power from five principles of contract law. Which of the following was not one of the five principles?

Duress to goods correct incorrect

Economic duress correct incorrect

Unconscionable transactions correct incorrect

Undue influence correct incorrect

Undue pressure correct incorrect

Salvage agreements correct incorrect

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. For what reasons has Lord Denning's principle of 'inequality of bargaining power' been rejected?

It comes at the expense of certainty. correct incorrect

There is no authority for it. correct incorrect

There is little need for it. correct incorrect

All of the options given are correct. correct incorrect