Maeve Entered into a Contract with Tyler

question 68

Multiple Choice

Maeve entered into a contract with Tyler.Tyler and Maeve had equal bargaining power and Tyler did not pressure Maeve at all to enter into the contract.Although she does not suffer from a mental illness or intellectual disability,and although she is an adult,Maeve is easily victimized in some commercial dealings.She is naive,immature,and not sophisticated.As a recent immigrant to Canada,she speaks English reasonably well,but she cannot read or write in English.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 judge may enforce the contract even if it Maeve has entered into an improvident bargain.
• B)The contract will be set aside unless Tyler proves that the agreement actually favours Maeve over himself.
• C)A court will presume that the transaction is unconscionable as soon as it hears evidence of Maeve's disadvantages.
• D)The contract cannot be enforced unless Maeve received independent legal advice.
• E)The contract will be set aside only if Maeve proves that Tyler exercised undue influence over her.

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Definitions:

Salvage Value

The expected end-of-life value of an asset after its useful period has ended.

Acceptable Earnings Rate

The minimum rate of return on investment that a company or investor is willing to accept, considering the risk and opportunity cost of the investment.

Useful Life

The estimated period over which a fixed asset is expected to be usable by the business, impacting depreciation calculations.

Salvage Value

An estimation of what an asset will be worth at the end of its usable life.