Chapter 12 LENB

________ is an erroneous belief about the facts of a contract at the time the contract is concluded.

A mistake

_______ is found when one party was forced into the agreement by the wrongful act of anther.

Duress

_______ is an untruthful assertion by one of the parties about a material fact.

Misrepresentation

Which of the following is a major obstacle to genuine assent?

undue influence

Which of the following is a correct statement regarding contract rescission based on mutual mistake?

Rescinding a contract based on mutual mistake is fair because an ambiguity in some key fact prevented the parties from being in actual agreement.

All but which of the following is an accurate statement regarding the responsibilities an injured party has when a false assertion was made by the other party?

The injured party will always prevail in a claim against the party who made the false assertion, since a false assertion results in strict liability.

Which of the following conditions would permit a court to invalidate a contract on grounds of unilateral mistake?

The mistake was so serious that the contract is unconscionable.

Scienter means ______.

knowingly

Which of the following refers to the failure to provide pertinent information about a projected contract?

nondisclosure

______ is present when the party making false statement claims or implies that he or she has personal knowledge of the accuracy of the assertion.

Intent to decieve

Which of the following is an accurate statement regarding an innocent misrepresentation?

It is a false statement about a fact material to an agreement that the person who made the statement believed to be true.

Which of the following is a correct statement regarding a mutual mistake?

When both parties to a contract are mistaken about either a current or a past material fact, either party can rescind the contract.

Which of the following relationships would be at least likely to result in a finding of undue influence?

business to business

_____ refers to those special relationships in which one person has taken advantage of his or her dominant position in the relationship to persuade the other person.

Undue influence

Which of the following terms refers to an erroneous belief about the facts of a contract at the time the contract is concluded?

a mistake

Which of the following is not one of the elements required for finding of fraudulent misrepresentation?

a preexisting commerical relationship between a buyer and a seller involved in a contract for the sale of goods transaction

Under which of the following circumstances will a court find nondisclosure as having the same legal affect as an actual false assertion?

a relationship of trust exists between the parties of the contract

A(n) ________ contract means that one or both parties have the ability to either withdraw from or enforce the agreement.

voidable

If one or both parties have the ability to either withdraw from or enforce the agreement., the contract is ________.

voidable

Which of the following is an accurate statement regarding the legal effect of a unilateral mistake?

Courts are hesitant to interfere with a contract when one of the parties has a correct understanding of the material facts of the agreement.

Which of the following is present when the party making false statement claims or implies that he or she has personal knowledge of the accuracy of the assertion?

Intent to decieve

All but which of the following circumstances would trigger a successful request for a rescission on grounds of duress?

One party realizes after the contract is formed that the agreement is a "bad bargain."

For a mutual mistake to interfere with legal consent, it must involve all but which of the following?

a situation involving a buyer who detrimentally relied on the seller's sales talk (also known as "puffery")

If a seller removes 20,000 miles from a car odometer before selling the car to a buy, this is known as ______.

concealment

Which of the following is not a major obstacle to genuine assent?

consideration

A(n) _________ misrepresentation is a false representation of a material fact that is consciously false and is intended to mislead the other party.

fraudulent

In some contract negotiations, one party makes a statement of material fact he or she thinks is true but is negligent in making the assertion. Such a(n) _______ results when the party making the statement would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

negligent misrepresentation

The failure to provide pertinent information about a projected contract is known as _______.

nondisclosure

When a contract is voidable, it may be ________, or cancelled.

rescinded

Which of the following are the two types of mistakes related to contract formation and enforcement?

unilateral and mutual