Chapter 9: MCQs

. One category of voidable contracts is those contracts that can be rescinded or affirmed by a party subjected to undue influence.

True

False

. The relationship between husband and wife is an automatic relationship of trust and confidence.

True

False

. ……… notice applies when a party did not have actual notice of a third party's actions, but he ought to have been aware of it.

. The courts give relief against unconscionable bargains in order to prevent ……… of a party's weakness

. Match the event to the legal analysis or case.

Too much pressure.

.

Too much influence.

.

Too much exploitation.

.

Notice of an induced mistake (misrepresentation).

. Which of the following are required to establish an unconscionable bargain? Please select all that apply.

An unfair bargain.

A disadvantaged party with no independent advice.

An excessive amount of pressure.

Unconscionable conduct from one party.

. Garry is a painter and decorator, and Alex employs him to decorate his dining room at a time when Garry is the only available decorator in the area. The room must be completed by 20 June, when Alex is giving a lavish dinner to his business contacts. Garry completes three out of four walls and then gets a better offer to work on a different house further down the street. A day before the business dinner, Garry tells Alex that he must pay 25% extra or he will not finish the work. Alex pays the extra - can he recover it?

Yes, on the grounds that Alex provided no consideration for his promise to pay extra, and so the contract is void and Alex can recover the money paid.

Yes. Garry's threat to breach the main contract makes the contract to pay extra voidable for duress, since it is made in bad faith, is illegitimate and caused Alex to pay the extra money. Alex had no reasonable alternative open to him, because there was no other decorator in the area and the room had to be finished by 20 June.

No. Garry has provided a 'practical benefit' in finishing the room and so the agreement to pay extra is binding.

No. A threat to breach a contract is lawful and a reasonable man would have resisted the pressure applied by Garry.

. The Privy Council advised, in Barton v Armstrong, that the threat against Barton must:

be a reason for executing the deed.

be the predominant reason for executing the deed.

be the only reason for executing the deed.

have caused the execution of the deed, in the sense that it would not have been executed but for the threat.

. A threat to do something that is lawful may amount to duress.

True

False

. Is it true today to say that a contract may be voidable for duress if one party threatens to seize (or does seize) possession of another party's goods?

No. The threatened party must rely on his legal remedies for the return of his goods.

Probably, although there is no direct precedent.

Yes, on the same basis that the contract in Astley v Reynolds (1731) was voidable because the pawnbroker refused to return Astley's plate until he paid an unlawful rate of interest.

No. The threat must be directed against the person, such as the threat to kill in Barton v Armstrong (1976).

. A party who claims that actual undue influence made a contract voidable must prove that the transaction was manifestly disadvantageous.

True

False

. Match the requirement to the legal doctrine.

Relationship of trust and confidence and a transaction calling for an explanation.

.

Proof of one party exercising too much influence over another.

.

Threat to breach a contract, which causes (on a 'but for' test) a party to enter into a contract when he has no other reasonable alternative.

.

An unfair bargain, a disadvantaged party and unconscionable conduct.

. Which of the following is likely to give rise to duress? Please select all that apply.

A threat to break the other party's arm.

A threat to steal the other party's car.

A threat to tell the police that the other party was involved in credit card fraud.

A threat not to contract with the party in the future.

. The rescuers in The Port Caledonia (1903) could not recover any money for the rescue because the captain's promise to pay £1,000 was made under duress.

True

False

. In order to establish presumed undue influence, the claimant must show that the there was a transaction calling for an ……….

. O'Sullivan v Management Agency and Music Ltd is an example of a case in which a contract can be rescinded even if the specific benefits cannot be returned precisely and exactly.

True

False

Chapter 9: MCQs

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