With Respect to Having the Court Set Aside a Contract

question 137

Multiple Choice

With respect to having the court set aside a contract on the basis of undue influence, which of the following is false?

• A) If a client transferred property to his lawyer and later claimed the transfer was due to undue influence, the law would presume the transfer was due to undue influence.
• B) If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back.
• C) A contract made in favour of a dominant person who exerted undue influence over the weaker party is voidable at the option of the weaker party.
• D) If you are a dominant person in relation to an aged relative who wants to sell you his house below market value, you should insist that the aged relative receive independent legal advice.
• E) Where undue influence is established, the resulting contract is voidable, not void.

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Definitions:

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the total number of outstanding shares.

Cumulative Preferred Stock

A type of preferred stock that entitles its holders to receive dividends in arrears before any dividends can be distributed to common stockholders, with missed dividends accumulating.

Net Income

The financial gain of a company post deduction of taxes and all costs from its revenue.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.