Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What recourse is available if a contract is entered into under duress?

The contract may be rescinded
The court will modify the terms of the contract
The contract will remain valid
The innocent party must continue to fulfill their obligations

The correct answer is: The contract may be rescinded

If a contract is entered into under duress, it means that one party was forced or threatened into agreeing to the contract. In this situation, the agreement is considered not to be a voluntary one. This means that the contract can be rescinded, or cancelled, by the innocent party. This is the appropriate recourse in this situation. Option B is incorrect because the court does not typically modify the terms of a contract if it was entered into under duress. Instead, the contract is usually deemed to be void or unenforceable. Option C is incorrect because the fact that the contract was entered into under duress means that it is not a valid contract in the first place. Option D is incorrect because the innocent party should not be held responsible for fulfilling obligations under a contract that was not voluntarily agreed to.