Max's Legal Refresher - Contract Law (III)
- Created by: max_lees23
- Created on: 15-04-20 01:23
Other questions in this quiz
2. Which is NOT required to show 3P creditor put on inquiry regarding undue influence took reasonable steps to alert surety?
- Private meeting with creditor in which surety urged to take independent legal advice (or sometimes creditor must insist & refuse to take security if not)
- Private meeting with creditor in which surety told of extent of liability
- Private meeting with independent legal advisor
- Private meeting with creditor in which surety warned of risk running
3. Definition of "rescission"?
- Where unforeseen circumstances prevent the performance of a contract so that it may be treated as discharged.
- Where a contract is null from the beginning, e.g. by seriously offending law or public policy, in contrast to merely voidable at the election of one of the parties (Black's Law Dictionary)
- Where contract is set aside and parties are put back into position in which they were before contract was made (PLC)
- Equitable remedy, whereby court will award innocent party a sum reflecting what he might have obtained had D not acted unjustly
4. Which is NOT a factor indicating illegitimate pressure in duress, according to Carillion Construction?
- Lack of realistic practical alternative
- Whether victim affirmed or sought to rely on contract (less likely if so)
- Victim protested at the time
- Threat to issue legal proceedings / not to enter into contract
- Actual or threatened breach of contract / tort
- Exerter of pressure acted in bad faith
5. What is the effect where 3P creditor has actual/constructive notice of undue influence over surety?
- 3P creditor can be pursued with proprietary claim / restitution of profits
- Any security contract obtained as a result = void (Barclays, confirmed in Etridge)
- Any security contract obtained as a result = voidable (Barclays, confirmed in Etridge)
- 3P creditor is innocent purchaser, so rescission is barred
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