Question 1

Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

Accepted Answer

A)  fraudulent misrepresentation.
B)  undue influence.
C)  mistake.
D)  none of the choices.E) B) and C)
F) A) and B)

Question 2

Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract.

Accepted Answer

A) True 
 B)False

Question 3

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is

Accepted Answer

A)  a bilateral mistake does not afford relief from a contract.
B)  a mistake of value does not afford relief from a contract.
C)  a unilateral mistake does not afford relief from a contract.
D)  the price was below the prices of comparable services.E) All of the above
F) A) and B)

Question 4

Forcing a party to enter into a contract under the fear of threats constitutes undue influence.

Accepted Answer

A) True 
 B)False

Question 5

Ked, a real estate agent, assures Lida that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lida buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lida may recover damages for

Accepted Answer

A)  the city's undue influence.
B)  the agent's fraudulent misrepresentation.
C)  the buyer's mistake.
D)  none of the choices.E) A) and B)
F) B) and C)

Question 6

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

Accepted Answer

A)  Nan is not aware of the fact.
B)  the fact concerns the value or quality of the freezers.
C)  the fact is a serious defect known to Nan but not to Marc.
D)  any of the choices.E) A) and C)
F) A) and B)

Question 7

If a mistake concerns the quality of the object of the contract, the mistake is one of fact.

Accepted Answer

A) True 
 B)False

Question 8

Hua applies to Inventory Corporation for a position as a coder. Hua has no training in coding. After Hua is hired, Inventory learns the truth. The employer can rescind the contract on the basis of

Accepted Answer

A)  none of the choices.
B)  fraudulent misrepresentation.
C)  mistake.
D)  undue influence.E) All of the above
F) B) and D)

Question 9

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel-he was only trying to make a sale. This is

Accepted Answer

A)  a mistake of value.
B)  a valid defense to a charge of fraud.
C)  fraudulent misrepresentation.
D)  puffery.E) C) and D)
F) None of the above

Question 10

A contract that includes a bilateral mistake may be rescinded if the mistake involves

Accepted Answer

A)  a material fact.
B)  any fact.
C)  an opinion.
D)  none of the choices.E) A) and B)
F) A) and C)

Question 11

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can

Accepted Answer

A)  not avoid the contract because persons are assumed to know the law.
B)  avoid the contract due to a bilateral mistake.
C)  avoid the contract due to undue influence.
D)  avoid the contract due to fraud.E) A) and B)
F) None of the above

Question 12

Exaggeration is an element of fraud.

Accepted Answer

A) True 
 B)False

Exam 15: Mistakes Fraud and Voluntary Consent

Forcing a party to enter into a contract under the fear of threats constitutes undue influence.

Correct Answer
verified

Ked, a real estate agent, assures Lida that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lida buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lida may recover damages for

Correct Answer
verified

If a mistake concerns the quality of the object of the contract, the mistake is one of fact.

Correct Answer
verified

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is

Correct Answer
verified

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

Correct Answer
verified

A contract that includes a bilateral mistake may be rescinded if the mistake involves

Correct Answer
verified

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can

Correct Answer
verified

Correct Answer
verified

Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

Correct Answer
verified

Hua applies to Inventory Corporation for a position as a coder. Hua has no training in coding. After Hua is hired, Inventory learns the truth. The employer can rescind the contract on the basis of

Correct Answer
verified

Exaggeration is an element of fraud.

Correct Answer
verified

Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract.

Correct Answer
verified

Exam 15: Mistakes Fraud and Voluntary Consent

Forcing a party to enter into a contract under the fear of threats constitutes undue influence.

Correct AnswerverifiedShow Answer

Ked, a real estate agent, assures Lida that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lida buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lida may recover damages for

Correct AnswerverifiedShow Answer

If a mistake concerns the quality of the object of the contract, the mistake is one of fact.

Correct AnswerverifiedShow Answer

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is

Correct AnswerverifiedShow Answer

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

Correct AnswerverifiedShow Answer

A contract that includes a bilateral mistake may be rescinded if the mistake involves

Correct AnswerverifiedShow Answer

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

Correct AnswerverifiedShow Answer

Hua applies to Inventory Corporation for a position as a coder. Hua has no training in coding. After Hua is hired, Inventory learns the truth. The employer can rescind the contract on the basis of

Correct AnswerverifiedShow Answer

Exaggeration is an element of fraud.

Correct AnswerverifiedShow Answer

Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract.

Correct AnswerverifiedShow Answer

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verified

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Correct Answer
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Correct Answer
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