Maeve Entered into a Contract with Tyler

question 44

Multiple Choice

Maeve entered into a contract with Tyler. Although she does not suffer from a mental illness or intellectual disability, and although she is an adult, Maeve is easily victimized in commercial dealings. She is naive, immature, and not very bright. As a recent immigrant to Canada, she speaks English reasonably well, but she cannot read or write it. She now wants to set aside her contract with Tyler on the basis that it is an unconscionable transaction. Which of the following statements is most likely to be TRUE?

• A) A court will presume that the transaction is unconscionable as soon as it hears evidence of Maeve's disadvantages.
• B) The contract will be set aside unless Tyler proves that the agreement actually favours Maeve over himself.
• C) The contract will be set aside only if Maeve proves that Tyler exercised undue influence over her.
• D) A judge may enforce the contract even if it does not provide any benefit to Maeve.
• E) The contract cannot be enforced unless Maeve received independent legal advice.

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Definitions:

Expected Growth Rate

The annual rate at which an investment, earnings, or value is expected to grow.

Annual Dividend

Annual dividend is the total amount of dividend payments a shareholder receives from a company in one year.

Zero Growth Stock

A stock in a company which is not expected to experience any growth in dividends or earnings and typically pays a high dividend yield.

Required Rate

The minimum return that investors expect or the company estimates it needs to generate from a capital investment or project to consider it viable.