Part A

Question 1

What is the test for mental disorders/intoxication?

Answer 1

1 The complaining party proves they did not understand what thye were doing entering the contact.
2. The other party was aware at the time the contract was formed.

Question 2

What is the test for duress?

Answer 2

1. Did the complaining party protest?
2. Was there another course of action?
3. Independent Advice?
4. Did they take steps to avoid?
5. Legitimate pressure?

Question 3

Who has a presumed relationship of trust?

Answer 3

Child/Parent
guardian/warden
Doctor/patient 
solicitor/client
trustee/beneficary

Question 4

What is the test for undue influence?

Answer 4

• Party had capacity to influence.
• Influence was exercised
• The exercise was undue
• brought about a transaction
• there was a disadvantage

Question 5

What is the test for unconscionable bargains?

Answer 5

1. Special disadvantage
2. Knowledge of disadvantage
3. Victimization

Question 6

What is victimization?

Answer 6

Active extortion of benefit
OR
Passive acceptance of a benefit in unconscionable circumstances

Question 7

What is the test for misrepresentation?

Answer 7

1. A false statement of past or present fact
2. Material into entering the contract
3. Party suffered a loss

Question 8

What is frustration?

Answer 8

Frustrating event renders performance radically different from that contemplated

Question 9

What is Quantum Merit?

Answer 9

A fair price for work done

Question 10

What is a mistake under contract law?

Answer 10

A mistake of law or fact

Induces mistake in interpretation of a document other that the subject contract

Question 11

What is an exclusion clause?

Answer 11

A term in a contract that seeks to exclude or limit the liability

Question 12

What is a duty to mitigate?

Answer 12

Once breach of contract occurred, the innocent party is under a legal duty to take reasonable steps to minimize loss