LA180- Ch. 8 T/F

Where a heavy-duty equipment supplier sells a truck claiming it can haul ten tonnes of gravel but its actual capacity is only five tonnes, this is misrepresentation even where the seller believes what he said was true.

• True

• False

The victim of fraudulent misrepresentation retains the right to have the parties to the contract returned to their original positions but not to be reimbursed for any out-of-pocket expenses.

• True

• False

A unilateral mistake refers to a breach of a unilateral contract.

• True

• False

When there is clear evidence that both parties agreed to something different than what was in the written document, the courts will rectify the document.

• True

• False

Novation is the term used when a new party is substituted for an original party to the contract.

• True

• False

Misunderstanding occurs when each party has a different understanding of the terms of the agreement, in which case the courts apply a reasonable interpretation of the contract.

• True

• False

When a negotiable instrument is used, the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

• True

• False

The threat of violence makes a contract voidable.

• True

• False

Duress takes place when one person takes advantage of another's vulnerability because of a special relationship with that person.

• True

• False

An assignee can be in no better position than was the assignor.

• True

• False