Law -Midterm 2 Latest Questions with
Guaranteed Pass Solutions 2026
Updated.
1 - Answer
Contracts between parties of unequal bargaining power that are unfairly advantageous to the
powerful parties have long been considered
a. bilateral contracts and void.
b. unilateral contracts and voidable.
c. unconscionable contracts and voidable.
d. non est factum.
e. contrary to the Criminal Code of Canada. - Answer c
Diff: 3
Type: MC
Topic: Consumer Protection
Skill: Applied
2
In executing its discretion to grant relief when a party makes a mistake about terms,
a. the court will correct the document.
b. the court will determine the burden of proof.
c. the court will consider the hardship that will be suffered by each party.
d. the court will adopt the position of the plaintiff.
e. the court will determine each party's interpretation of the terms. - Answer c
Diff: 2
Type: MC
Topic: Mistakes About the Terms
Skill: Recall
3
An innocent party can lose her or his right to repudiate a contract formed as a result of undue
influence by
,a. physical retaliation after the contract's formation.
b. not repudiating promptly after being freed from the domination.
c. tearing up the contract before its execution.
d. reversing the role of the dominant party.
e. declaring that the special relationship between the parties no longer exists. - Answer b
Diff: 3
Type: MC
Topic: Undue Influence
Skill: Recall/Applied
4
Use this fact situation to answer the related questions that follow it.
A and B are negotiating a settlement under which A is to give B money and in return B is to give
A his house and his car. The negotiations are by faxes back and forth between A and B, who
agree to put the settlement in writing. A prepares the written settlement agreement, which,
unfortunately, does not refer to his house, so B quickly signs it.
In this situation, if A argues that the house was part of the settlement and was left out by
mistake,
a. B need not give his house to A, because there really was no error by A at all.
b. B need not give his house to A, because the written settlement agreement superseded the
negotiations.
c. B need not give his house to A, because it was not reasonable for A to have relied on the
house as part of B's settlement obligation.
d. B must give his house to A, because B knew of A's error and took advantage of it - Answer
d
Diff: 2
Type: MC
Topic: Mistakes About the Terms
Skill: Applied
5
Use the fact situation in Q4 to answer the related question that follows.
Based on the fact situation above, to ensure that A's argument succeeds and he gets the house
from B, A will ask the court for
,a. rectification.
b. an injunction.
c. rescission.
d. specific performance.
e. damages. - Answer a
Diff: 2
Type: MC
Topic: Mistakes About the Terms
Skill: Applied
6
If a preliminary bargaining statement is expected to influence the decision of the other party,
then it is said to be ___________ to the contract.
a. subject
b. tangible
c. consequential
d. substance
e. material - Answer e
Diff: 2
Type: MC
Topic: Misrepresentation
Skill: Applied
7
A agrees to buy 1000 shares in a telephone company from B for $3.00 a share. A believes that
the value of the shares in the company is going to go up to $15.00 in a day or two. However, B
believes that the value of the shares is going to go down to $1.50 and wants to get as much
money as he can. Unknown to either A or B, at the time of the agreement, the value of the
company and thus the shares has dropped below $1.50, to $0.75. A now wishes to get out of
the agreement. In this case,
a. A will succeed because A was mistaken about the value of the shares in the company and has
been adversely affected.
b. A will succeed because there was a mistake as to the subject matter of the contract and A has
been adversely affected.
c. A will not succeed because A was adversely affected and took a risk about the company and
the value of its shares.
, d. A will succeed because a change in circumstances of the company does not affect - Answer
c
Diff: 2
Type: MC
Topic: Mistakes in Assumptions
Skill: Applied
8
A contract that is void
a. is one that exists, but by reason of some mistake can be set aside.
b. is one that exists, but is merely unenforceable.
c. is one that does not exist, but can still be set aside.
d. is one that does not exist unless a party wants it to, at which time it becomes enforceable.
e. is one that never exists so as to give rise to rights under it. - Answer e
Diff: 2
Type: MC
Topic: Mistake and Innocent Third Parties
Skill: Recall/Applied
9
A voidable contract is a contract that,
a. like a void contract, never exists so as to give rise to rights under it.
b. unlike a void contract, cannot be rectified.
c. unlike a void contract, exists but does not give rise to legal rights.
d. unlike a void contract, exists but can only be set aside by agreement of the parties to it.
e. unlike a void contract, exists but can be set aside at the option of one of the parties to it. -
Answer e
Diff: 2
Type: MC
Topic: Mistake and Innocent Third Parties
Skill: Recall/Applied
10
Guaranteed Pass Solutions 2026
Updated.
1 - Answer
Contracts between parties of unequal bargaining power that are unfairly advantageous to the
powerful parties have long been considered
a. bilateral contracts and void.
b. unilateral contracts and voidable.
c. unconscionable contracts and voidable.
d. non est factum.
e. contrary to the Criminal Code of Canada. - Answer c
Diff: 3
Type: MC
Topic: Consumer Protection
Skill: Applied
2
In executing its discretion to grant relief when a party makes a mistake about terms,
a. the court will correct the document.
b. the court will determine the burden of proof.
c. the court will consider the hardship that will be suffered by each party.
d. the court will adopt the position of the plaintiff.
e. the court will determine each party's interpretation of the terms. - Answer c
Diff: 2
Type: MC
Topic: Mistakes About the Terms
Skill: Recall
3
An innocent party can lose her or his right to repudiate a contract formed as a result of undue
influence by
,a. physical retaliation after the contract's formation.
b. not repudiating promptly after being freed from the domination.
c. tearing up the contract before its execution.
d. reversing the role of the dominant party.
e. declaring that the special relationship between the parties no longer exists. - Answer b
Diff: 3
Type: MC
Topic: Undue Influence
Skill: Recall/Applied
4
Use this fact situation to answer the related questions that follow it.
A and B are negotiating a settlement under which A is to give B money and in return B is to give
A his house and his car. The negotiations are by faxes back and forth between A and B, who
agree to put the settlement in writing. A prepares the written settlement agreement, which,
unfortunately, does not refer to his house, so B quickly signs it.
In this situation, if A argues that the house was part of the settlement and was left out by
mistake,
a. B need not give his house to A, because there really was no error by A at all.
b. B need not give his house to A, because the written settlement agreement superseded the
negotiations.
c. B need not give his house to A, because it was not reasonable for A to have relied on the
house as part of B's settlement obligation.
d. B must give his house to A, because B knew of A's error and took advantage of it - Answer
d
Diff: 2
Type: MC
Topic: Mistakes About the Terms
Skill: Applied
5
Use the fact situation in Q4 to answer the related question that follows.
Based on the fact situation above, to ensure that A's argument succeeds and he gets the house
from B, A will ask the court for
,a. rectification.
b. an injunction.
c. rescission.
d. specific performance.
e. damages. - Answer a
Diff: 2
Type: MC
Topic: Mistakes About the Terms
Skill: Applied
6
If a preliminary bargaining statement is expected to influence the decision of the other party,
then it is said to be ___________ to the contract.
a. subject
b. tangible
c. consequential
d. substance
e. material - Answer e
Diff: 2
Type: MC
Topic: Misrepresentation
Skill: Applied
7
A agrees to buy 1000 shares in a telephone company from B for $3.00 a share. A believes that
the value of the shares in the company is going to go up to $15.00 in a day or two. However, B
believes that the value of the shares is going to go down to $1.50 and wants to get as much
money as he can. Unknown to either A or B, at the time of the agreement, the value of the
company and thus the shares has dropped below $1.50, to $0.75. A now wishes to get out of
the agreement. In this case,
a. A will succeed because A was mistaken about the value of the shares in the company and has
been adversely affected.
b. A will succeed because there was a mistake as to the subject matter of the contract and A has
been adversely affected.
c. A will not succeed because A was adversely affected and took a risk about the company and
the value of its shares.
, d. A will succeed because a change in circumstances of the company does not affect - Answer
c
Diff: 2
Type: MC
Topic: Mistakes in Assumptions
Skill: Applied
8
A contract that is void
a. is one that exists, but by reason of some mistake can be set aside.
b. is one that exists, but is merely unenforceable.
c. is one that does not exist, but can still be set aside.
d. is one that does not exist unless a party wants it to, at which time it becomes enforceable.
e. is one that never exists so as to give rise to rights under it. - Answer e
Diff: 2
Type: MC
Topic: Mistake and Innocent Third Parties
Skill: Recall/Applied
9
A voidable contract is a contract that,
a. like a void contract, never exists so as to give rise to rights under it.
b. unlike a void contract, cannot be rectified.
c. unlike a void contract, exists but does not give rise to legal rights.
d. unlike a void contract, exists but can only be set aside by agreement of the parties to it.
e. unlike a void contract, exists but can be set aside at the option of one of the parties to it. -
Answer e
Diff: 2
Type: MC
Topic: Mistake and Innocent Third Parties
Skill: Recall/Applied
10
