Humber/Ontario Real Estate Course 1 Exam Practice

When discussing contract enforceability, which of the following is NOT a classification under lack of genuine intention?

1. Mistake

2. Rescission

3. Duress

4. Undue Influence

5. Misrepresentation

6. Fraud

The correct answer is: Rescission

The correct choice is that rescission is not a classification under lack of genuine intention. Rescission refers to the legal remedy of canceling a contract, effectively unwinding it and returning the parties to their original positions. While rescission can occur due to a lack of genuine intention—often arising from issues such as mistake, duress, undue influence, misrepresentation, or fraud—it itself is not a classification of lack of genuine intention but rather a result that can occur when genuine intention is absent. On the other hand, the concepts of mistake, duress, undue influence, misrepresentation, and fraud all directly relate to scenarios where one party's genuine intention to enter into a contract is compromised. In instances of mistake, one or both parties may have a misunderstanding that affects their agreement. Duress involves coercion, where one party is forced to enter into a contract against their will. Undue influence pertains to situations where one party takes advantage of their position of power over another, leading to an exploitative situation. Misrepresentation occurs when false statements induce a party to enter into a contract, while fraud involves deliberate deceit. Each of these concepts can undermine the essential element of genuine intention required for enforceable contracts.