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Discuss how privity of contract affects the position of people who are not parties to a contract.In your discussion,include an examination of the Supreme Court decision in London Drugs Ltd.v.Kuehne & Nagel International Ltd.

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Privity of contract limits the rights an...

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Joe,a student at the local college,had a one-year lease on a suite in a house owned by Sam.Sam sold the house to Jones without telling Jones about the lease.When he discovered Joe in the suite,he demanded that Joe leave.Explain the rights of the parties in terms of privity of contract.

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Joe is not party to the contract between...

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Al sells gravel to Bob on credit,and Bob sells it to Chuck,an innocent purchaser.Then Bob runs away with the money,without paying Al.Who will get the gravel if the court holds that the contract between Al and Bob was "void"?


A) Al
B) Bob
C) Chuck
D) Al and Bob
E) Bob and Chuck

F) C) and D)
G) A) and B)

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With regard to the law governing privity of contract and assignment,which of the following is true?


A) Where the assignor assigns the same debt to two or more persons,if the promisor (debtor) pays out in good faith to the first assignee to give him notice,he has no further obligation.
B) If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment,he is free from any obligation to the assignee; the assignee must look to the assignor for payment.
C) An equitable assignment is easier to enforce than a statutory assignment.
D) An exception to the doctrine of privity of contract is a contract selling a car.
E) Novation refers to the voiding of the original contract and substituting another.

F) C) and D)
G) A) and B)

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When two parties are involved in a misunderstanding as to the meaning of a term of the contract,which of the following is usually applied by the court to settle the matter?


A) The court will find that there is no contract because there is no meeting of the minds.
B) Non est factum
C) Caveat emptor
D) The most reasonable interpretation of the terms
E) The equitable remedy of rectification

F) None of the above
G) A) and C)

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If Mills agreed to sell Boothe a used Nissan automobile,which in the contract was described as a 2012 Nissan Murano with a rebuilt transmission,Boothe could sue for ________ if the vehicle turned out to be a 2010 Murano and the transmission was used,not rebuilt.


A) rescission
B) compensation
C) breach of contract
D) damages
E) the tort of deceit

F) All of the above
G) A) and D)

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The principle that contract terms apply only to the actual parties to the contract is known as ________.

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A provision in equity whereby one person transfers property to a second person obligated to use it to the benefit of a third is known as ________.

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Explain what is meant by an "involuntary assignment."

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An involuntary assignment is a...

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Discuss the principle of caveat emptor and how it relates to misrepresentation in contract law.

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The answer here will likely be shorter,b...

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If a lawyer persuades a client to guarantee a loan,the relationship of solicitor/client leads to a presumption of


A) duress.
B) mental incapacity.
C) lack of intention.
D) unconscionability.
E) undue influence.

F) C) and E)
G) C) and D)

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The original party cannot enforce a contract that bestows benefits on an outsider.

A) True
B) False

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A fraudulent misrepresentation which induces another person to enter into a contract can result in which of the following remedies?


A) Rescission and/or damages
B) Rescission only
C) Damages only
D) Rectification
E) There is no remedy available for fraudulent misrepresentation.

F) C) and D)
G) A) and B)

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The thing or benefit (such as a claim or the right to sue)that is transferred in an assignment is known as ________.

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Fraud does not exist if the victim of the misrepresentation could have found out the truth,but relied instead on the statement of the defendant.

A) True
B) False

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Outline the restrictions on the ability of a person to claim non est factum.

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It must be shown that the mist...

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Mr.Zink hired Bruce Dorne to create a payroll program for his business.Bruce was to be paid $4000 for the program.When Bruce was half finished,a creditor to whom he owed $2000 pressed so hard for payment that Bruce assigned him $2000 of the contract price,an amount he felt he had earned already.The creditor,Mr.Pressing,gave written notice that very day to Mr.Zink.On these facts,which of the following is true? (Read each statement separately.)


A) Mr.Zink must pay $2000 to Mr.Pressing on the day that notice was given,because at that time Bruce had done half of the work on the $4000 contract.
B) This assignment is a statutory assignment,not an equitable assignment.
C) This type of assignment is not recognized by the courts because it is an assignment of contractual obligations.
D) Mr.Pressing is entitled to $2000 from Mr.Zink when the contract is completed,if at least that much is owed to Bruce by Zink at that time.
E) If Bruce bungled the assignment and the court determined that nothing was owed to him,Pressing could still get $2000 from Zink.

F) A) and D)
G) A) and C)

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A windfall that one party to a contract stands to make at the expense of the other is known as ________.

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Non est factum is available as a defence even when there is negligence on the part of the person claiming it.

A) True
B) False

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The principle that courts will not permit outside evidence to contradict clear wording of a contract is known as ________.

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The parol ...

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