BC Law Ch 4 Vitiating Factors

When a contract is void, it is treat ___.

• as thought it had once existed

• as though it had never existed

• as a priceless treasure

• as existing

In a voidable contract, the injured party has the right to ___.

• only affirm the contract

• rely on the Unfair Contract Terms Act (UCTA)

• choose between terminating or affirming the contract

• only terminate the contract

Contracts in restraint of trade are prima facie illegal and void.

• True

• False

Select the necessary elements for a court to enforce a clause that is in restraint of trade.

• There is a legitimate interest to protect.

• There must be a statement of fact and not law.

• The term is reasonable between the parties.

• The term is reasonable in the public interest.

Where a court rules that one clause is in restraint of trade, the court ____.

• is required by law to enforce the entire contract

• is required by law to cancel the whole contract

• may rewrite the contract for the parties

• may cancel the illegal clause and enforce the remaining valid clauses

Sam had no reasonable ground to believe his statement about the car's milage was true. Sam may have ___. 

• made a convenient mispresentation

• made a fraudulent misrepresentation

• made an innocent misrepresentation

• made a negligent misrepresentation

Where rescission is awarded, there is no need to return money or goods that have changed hands. 

• True

• False

Select all that apply to the remedy of recission.

• It is an equitable remedy.

• It aims to restore parties to their pre-contractual positions.

• The court may refuse to award recission.

• It is available as of right.

Contracts must have been entered into voluntarily and involve a genuine meeting of minds.

• True

• False