With Respect to Having the Court Set Aside a Contract

question 120

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 her 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:

Compounded Monthly

Refers to the process of calculating interest earnings on a principal amount, where the interest is added back to the principal sum each month, leading to interest earnings on interest.

Discount Rate

It's the interest rate applied in calculations of DCF to find out the current market value of predicted cash flows.

Annual Salary

The total amount of monetary compensation a person earns from their employer in a year before taxes and other deductions.

Starting Bonus

A one-time payment made to an employee as an incentive at the beginning of their employment period.