biz law chapter 13
In which of the following cases is a contract between A and B binding?
A makes a mistake of material fact, and the mistake is unknown by B.
Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if:
Jim relied upon Jack's statement.
Judy, a widow, just sold a piece of property. She will live off that money during her retirement. Judy dotes on her son, Chris, who asks her to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have formed a binding contract. What is your conclusion?
The contract is voidable based on undue influence.
Marquez agrees to buy Dale's pickup truck so he can pull his trailer. Both Marquez and Dale believe that the truck is big enough to do the job. After they complete the deal, Marquez finds that the truck is not strong enough to handle the trailer. The contract between Marquez and Dale can be rescinded because of:
a mutual mistake.
An agreement is not binding when:
both parties make a mistake regarding a material fact.
A finding of undue influence would most likely not occur in a contract between:
neighbor and neighbor.
All of the following statements refer to an element of fraud except:
the defendant desired to obtain a financial benefit.
The obligation of a cosigner is discharged by:
the payment of the debt.
An apparently voluntary agreement may in fact not be voluntary if:
undue influence is present. physical duress is present. economic duress is present. all of these.
Assume Harvey buys a bull from Mike for the purpose of breeding, and Mike was aware of Harvey's purpose in purchasing the bull. Later, the bull was discovered to be sterile, although at the time of sale both Harvey and Mike believed the bull was not sterile. The contract is:
voidable based on misrepresentation.
