Which of the Following Will Have the Likely Consequence of the Court

question 19

Multiple Choice

Which of the following will have the likely consequence of the court finding the contract void on the grounds of mistake?

• A) Mr. Twigg carelessly signed a mortgage for $24,000, which he was told was a mortgage for only $14,000. This was assigned to Mr. Jones.
• B) Mr. Ideer bought some property, erroneously thinking that the province was planning to put a highway nearby, even though the seller had never made any such suggestion.
• C) The parties signed a document that stated the consideration as $1200 instead of the $1100 that the buyer and seller had contracted for, but the buyer cannot prove the terms of the original contract.
• D) Mr. Ille, although using due care, signed a cheque for $100 in favour of his secretary, who had told him it was a receipt for money received.
• E) Mr. Jones, without reliance on a salesperson, purchased an HTC smartphone, thinking it was actually a Samsung smartphone.

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Definitions:

Price Range

The spread between the highest and lowest price of a commodity, security, or asset over a given period.

Demand

The desire and ability of consumers to purchase goods and services at given prices.

Perfectly Elastic

Describes a situation in economics where the demand or supply for a product can vary infinitely with a small change in price.

Inelastic

A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.