Question 50 (1 point) Mr. Frank, a foreman supervising some 43 employees, was asked by his secretary to sign a form requesting additional supplies needed on the factory floor. He was not careless when he examined the form, but his secretary had cleverly arranged the signature line so that instead of signing a request for supplies he signed a cheque payable to his secretary. What plea, if any, would be used to defend against her action on the cheque? 1) Mistake 2) Rectification 3) Rescission 4) Non est factum 1 5) Illegality of object Question 49 (1 point) With respect to having the court set aside a contract on the basis of undue influence, which of the following is false? O 1) 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. 2) 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 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. If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back. Where undue influence is established, the resulting contract is voidable, not void. 3) 4) 5) Question 48 (1 point) Which one of the following mistakes voids a contract? 1) When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat. 2) Sally and Mary had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Sally. 3) Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost. O 4) Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900. 5) Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient