BA Ch. 14/15

Daredevil Rides Inc. owes debts to Equipment Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by

Daredevil, Equipment, or Food

T/F A bilateral mistake occurs if one party to a contract is mistaken about a material fact and the other party knew or should have known that a mistake was made.

False

T/F For a particular contract to fall under the one-year rule, the parties must subjectively believe that its performance is impossible to complete within a year.

False

T/F If a contractor's bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.

False

T/F In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.

False

T/F A contract must be in writing to be enforceable if it cannot by its terms be performed within one year from the day after the contract's formation.

True

T/F Undue influence can arise from a confidential relationship or a relationship based on trust.

True

Analytics LLC processes misinterpreted data furnished by Botched Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

a bilateral mistake

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of

the tablet only