1.A frustrating event can be all of the following, except - a. increase in the cost of materials needed to perform the contract b. change of circumstances that are unforeseen c. a hurricane 2. Which one of the following statements is incorrect? a. In English law there is no duty to disclose information before a contract unless the contract is one of the utmost good faith or a special relationship of trust exists between the partie; b. To be actionable the misrepresentation must be the only reason that persuaded the other party to enter into the contract. c. A statement which is true when it is made but becomes false before the contract is completed may amount to a misrepresentation. d. Misrepresentations cover false statements and half-truths. 3. Ash is a car dealer who has recently entered into a number of contracts. He is concerned that some of the agreement he has entered into seem to be slightly different than what he was expecting. Focusing only on the principles from the law of mistake, analyse the contract to see whether there is anything Ash can do with this contract. The contract Ash is questioning is a contract for the purchase of a world-famous racing driver's old race winning car. The price is particularly high due to the popularity of the race driver and it is considered a collector's item. Unfortunately, a few weeks, Ash discovers it is not actually one of the race driver's old cars, meaning it is worth 10% of what he paid. The seller had no idea of this fact either. Q: What principles of law are applicable in this case? a. This is a unilateral mistake of identity of the subject matter. The contract is therefore void. b. This is a mutual mistake between the parties and can therefore be said that the contract will be void because of it. c. Mistake as to quality of subject matter is an actionable claim and makes the contract void, d. This is a type of mistake as to quality of subject matter, The test of essential difference' is applied. The case on point is Leaf v international Galleries 4. George buys a vase from Louis for $2,000. Louis believes the vase is worthless but George knows it is valuable. George later sells it for $100,000. What legal action can Louis take against George? a. Sue George for the return of the vase as the contract is void for unilateral mistake. b. Sue George for the return of the vase as the contract is void for common mistake. c. Louis has no legal remedy. d. Sue George for breach of contract. 5. The following are true of an injunction, except a. it compels the breaching party to perform the terms of the contract b. requires a person to stop doing something c. used to maintain the status quo of the subject matter pending outcome of a trial 6. The following are remedies available for misrepresentation, except a. Damages b. Rescission and Damages c. No relief d. Compensation 7. What is meant by a common mistake in the law of contract? a. A mistake that is often made. b. Where both parties make the same mistake. c. Where only one of the parties makes a mistake. d. Where the parties are at cross purposes. 8.Which one of the following is NOT an example of common mistake? a. Mistake as to identity b. Mistake as to quality c.Mistake as to existence of the subject matter d. Mistake as to title 9. A term is a true statement of fact that induces the party to enter into a contract Select one: True False 10. If a statement is made which is true at the time of making, but subsequently becomes untrue, there is a positive duty on the statement maker to ensure to inform the relevant party of this. Select one: True False 11. GroundUp Inc. agreed to build 100 houses for a new housing scheme in West Demerara. Robin, the owner of the Scheme and GroundUp Inc. entered into an agreement. GroundUp Inc agreed to supply all the materials for the construction as well as the labour. As it turned out GroundUp was unable to supply the required materials because the prices that the company initially estimated went up by more than 65%. GroundUp was unable to fulfil the contract. GroundUp claimed that the contract was frustrated. a. The loss lies where it falls. Robin must therefore cut his losses and move on. b. An increase in expenses will never frustrate a contract. It may be a bad bargain and results in a lost of profit by one party, but it is not a circumstance that is radically different or impossible to complete. c. The massive increase is unconscionable and the company should be altowed to rescind the contract. d. The loss lies where it falls. Both parties will be able to claim that the contract is frustrated and will no longer have any obligations and liabilities under it. 12. Specific performance is where the Court orders that the party in breach of a term perform the act or acts that they are obligated to do under the contract. Select one: True False 13. An injunction is an order of Court which requires a person, corporation, or government entity to stop doing something; or to be prevented from doing something Select one: True False 14. The doctrine of frustration discharges both parties from their contractual obligations where following the formation of the contract, performance of the contractual obligations becc impossible or radically different. Select one: True False 15. What does rescission of a contract mean? a. A false statement of fact. b. The contract is set aside and the parties are put back in the same position as if the contract had never been entered into. c. Monetary compensation. d. The parties are put into the same position as if the contract had been completed. 16. Queen Madison IV was making her ceremonial trip around the world and was going to visit Guyana as part of her trip. Abby who was anxious to see the Queen booked a room on the motorcade route from Sarah. Sarah did not ordinarily rent rooms out to persons she did not know but she knew why Abby wanted the room and agreed to rent it to Abby. Abby paid one hundred thousand dollars as a deposit for the room to view the motorcade on the 17 and 219 of March. The balance of two hundred thousand dollars was to be paid on the 3rd of March. As it happened, Queen Madison IV fell ill and could not complete her tour and did not come to Guyana on those dates. a. Abby had used of the room and it did not matter why she rented the room. The fact remains that she rented a room to use and she is obligated to pay the balance owing to Sarah. b. Sarah knew the reason why Abby wanted the room and when the event did not happen, the contract between the two became frustrated. The contract is therefore void and Sarah cannot claim for the balance owed. c. The parties made a mutual mistake and it was neither of their faults that the contract could not be completed d. Sarah misrepresented to Abby about the Queen's parade and therefore Abby can bring an action against Sarah for misrepresentation 17. Guyana's highest Court of Appeal can be found in a. Guyana b. England c. Trinidad 18. Regarding mistake as to identity, which one of the following statements is true? a. Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will occur. b. Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will not occur. c. A contract will be held void if the mistake relates to the attributes of a person. d. Where parties do not contract face-to-face (e.g. by mail), and one of the parties is not who he claims to be, the general rule is that a mistake as to identity will not occur. 19. Misrepresentation in a contract makes the contract: a. Void. b. Illegal. c. Unenforceable. d. Voidable. 20. In relation to misrepresentation, which one of the following statements is true? a. Statements of opinion can never amount to a misrepresentation. b. A statement regarding a future course of conduct cannot amount to a misrepresentation. c. Statements amounting to mere 'puffs' cannot amount to a misrepresentation. d. Silence cannot amount to a misrepresentation. 21. Frustration brings a contract to an end. It makes it void. Select one True False 22. A counter offer can be viewed as an acceptance, because a. some of the terms were accepted in the original offer, and new terms added b. none of the stated answers c. it shows that the parties are willing to enter into a contract, and the terms can be combined in the offer and counter offer 23. The Full Court of Appeals hears appeals from the Magistrate's Courts alone Select one: True False 24. Damages This is available in a contract which damages is due to the losses or costs which incurred because of the other party's wrongful act Select one: True False 25. Once it has been proven that a false statement of fact has been made, the next step is to prove that this statement of fact induced the claimant to enter the contract. There are three requirements of inducement, except - a. The representation must be known to the representee b. The representation has to be a half-truth c. The representation made must be material d. The representation must be acted upon 26. Delay or interruption in the performance of a contract is a consideration by the courts on whether or not a contract can be frustrated. Select one: True False 27. Price marked goods on display invites the customer to make an offer on the good being sold. Which of the following is false? a. Goods on display are an invitation to treat b. The cashier makes an offer when he tells the customer how much the items cost c. The customer makes an offer and completes the transaction when the money is paid to the cashier and the goods collected 28. A frustrating event is one that is unforeseen by the parties to a contract and where there is no risk allocated Select one: True False 29.Offers can be withdrawn at anytime before they are accepted. True False 30. An operative mistake in a contact makes the contract: a. Voidable. b. Void. c. Unenforceable. d. Illegal