Chapter 10 Multiple Choice Questions

. In relation to misrepresentation, which one of the following statements is true?

Statements of opinion can never amount to a misrepresentation.

A statement regarding a future course of conduct cannot amount to a misrepresentation.

Silence cannot amount to a misrepresentation.

Statements amounting to mere 'puffs' cannot amount to a misrepresentation.

. What are the general remedies for innocent misrepresentation?

Rescission of the contract and the representee may also be able to claim an indemnity.

Rescission of the contract and damages.

Damages only.

Rescission only.

. In relation to negligent misrepresentation, which one of the following statements is untrue?

In cases involving negligent misrepresentation under statute, there is no need to establish the existence of a 'special relationship.'

The assessment of damages for negligent misrepresentation under statute is the same as for fraudulent misrepresentation.

Negligent misrepresentation under statute will only occur in cases where the representor enters into a contract with the representeee.

In cases involving negligent misrepresentation under the common law, the burden of proof is placed on the representor to establish that his representation was true.

. Which one of the following statements provides an accurate description of a mutual mistake?

A mutual mistake occurs where both parties have made the same mistake.

A mutual mistake occurs where both parties have made a mistake, but they have made a different mistake.

A mutual mistake occurs where one party is mistaken and the other party knows, or can be taken to know, of the mistake.

A mutual mistake occurs where no actual mistake has occurred, but both parties later believe a mistake has occurred.

. Which one of the following is NOT an example of common mistake?

Mistake as to identity

Mistake as to existence of the subject matter

Mistake as to title

Mistake as to quality

. Regarding mistake as to identity, which one of the following statements is true?

A contract will be held void if the mistake relates to the attributes of a person.

Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will not occur.

Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will occur.

Where parties do not contract face-to-face (e.g. by mail), and one of the parties is not who he claims to be, the general rule is that a mistake as to identity will not occur.

. Which one of the following relationships does NOT give rise to a presumption of undue influence?

Employer and employee

Parent and child

Trustee and beneficiary

Doctor and patient

. In relation to duress, which one of the following statements is true?

Duress will only be present where one party physically threatens the person of another.

The doctrine of duress is a creation of equity.

The doctrine of duress only applies to property or the person, and has not been extended to cover economic or business interests.

The presence of duress will render a contract voidable.

. Which one of the following contracts is NOT an example of an illegal contract?

A contract that purports to oust the jurisdiction of the courts.

A contract requiring the commission of an unlawful act.

A contract that amounts to a legal wrong.

A lawful contract that does not require the commission of an unlawful act, but results in a person benefitting from an unlawful act, should that unlawful act occur.

. Which one of the following is NOT an example of a contract in breach of public policy?

An agreement that adversely affects the institution of marriage.

A contract that seeks to oust the jurisdiction of the courts

A contract in restraint of trade

A contract involving commercial dealings with the enemy during wartime.

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