Chapter 7 Multiple choice questions

. Which one of the following statements is incorrect?

Misrepresentations cover false statements and half-truths.

A statement that is true when it is made, but becomes false before the contract is completed, may amount to a misrepresentation.

To be actionable the misrepresentation must be the only reason that persuaded the other party to enter into the contract.

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. .

. Misrepresentation in a contract makes the contract:

Void.

Illegal.

Voidable.

Unenforceable.

. An operative mistake in a contract makes the contract:

Void.

Illegal.

Voidable.

Unenforceable.

. What is a common mistake in the law of contract?

A mistake that is often made.

Where both parties make the same mistake.

Where only one of the parties makes a mistake.

Where the parties are at cross-purposes.

. George buys a vase from Louis for £20. Louis believes the vase is worthless but George believes it is valuable. George later sells it for £10,000. What legal action can Louis take against George?

Sue George for the return of the vase as the contract is void for unilateral mistake.

Sue George for breach of contract.

Louis has no legal remedy.

Sue George for the return of the vase as the contract is void for common mistake.

. The possible remedies for negligent misrepresentation in a non-consumer contract are:

Rescission and damages.

Damages only.

Rescission only.

Specific performance.

. What does rescission of a contract mean?

The contract is set aside and the parties are put back in the same position as if the contract had never been entered into.

The parties are put into the same position as if the contract had been completed.

Monetary compensation.

A false statement of fact.

. Which of the following statements is incorrect?

Duress is where a party has entered into a contract after one party has threatened physical violence or serious economic coercion.

The presence of duress makes a contract void.

Undue influence is where a party has entered into a contract after excessive persuasion.

The presence of undue influence makes a contract voidable.

. When will the courts presume that there has been undue influence is the signing of a contract?

Where there is a fiduciary relationship with the party against whom the undue influence is alleged.

In all contracts made between a married couple (or a co-habiting partner).

The courts will not presume undue influence. The party alleging undue influence must prove it has occurred.

Where the contract is oral.

. Sally contracts with her employer that she will have a salary of £35,000 per annum plus a cash payment of £2000 at the end of the year which will not be declared thereby avoiding tax. Sally's employer has now refused to pay her the £2000. Can Sally take legal action to enforce the payment of £2000?

Yes, Sally has completed the work as agreed.

Yes, provide the contract is in writing.

No, the contract is void for illegality.

No, the contract is void for mistake.

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