Max's Legal Refresher - Contract Law (III)

?

1. Which is NOT required to show 3P creditor put on inquiry regarding undue influence took reasonable steps to alert surety?

  • Private meeting with independent legal advisor
  • Private meeting with creditor in which surety told of extent of liability
  • Private meeting with creditor in which surety warned of risk running
  • Private meeting with creditor in which surety urged to take independent legal advice (or sometimes creditor must insist & refuse to take security if not)
1 of 19

Other questions in this quiz

2. Which is NOT a bar to rescission?

  • Undue delay / lapse of time, i.e. time delay longer than necessary to check the validity of the representation (Leaf)
  • Impossible for one party to substantially restore goods/property to the other
  • No substantial loss by representee
  • Innocent purchaser acquires an interest in the property before the contract is avoided, without notice of any misrepresentation
  • Affirmation, i.e. choosing to treat the contract as continuing to be valid

3. What is the effect where 3P creditor has actual/constructive notice of undue influence over surety?

  • 3P creditor is innocent purchaser, so rescission is barred
  • Any security contract obtained as a result = voidable (Barclays, confirmed in Etridge)
  • Any security contract obtained as a result = void (Barclays, confirmed in Etridge)
  • 3P creditor can be pursued with proprietary claim / restitution of profits

4. Which is NOT an unforeseen event capable of frustrating contract?

  • Illegality, eg. entering into contract where to deliver would mean trading with enemy (Fibrosa)
  • Government intervention, provided did not constitute merely short or temporary stoppage (D. Kerr)
  • Unavailability of thing (Taylor v Caldwell) or person (Condor v Barron Knights)
  • Hardship, inconvenience or material loss (Davis v Fareham)
  • Non occurrence of event, where occurrence is foundation of the contract, and parties were chosen for that express purpose (Krell)

5. Which is NOT true regarding damages under s2(2) Misrepresentation Act 1967?

  • Given in lieu of rescission, according to court's discretion
  • Only if misrepresentation is fraudulent
  • Court has discretion and won’t award if rescission has been barred
  • Likely only where false statement was a small matter, and unfair to allow rescission
View more questions

Comments

No comments have yet been made

Similar Law resources:

See all Law resources »See all Contract resources »