Blaw ch 12 smart book

My most challenging concepts

-Identify the conditions that would permit a court to invalidate a contract on grounds of unilateral mistake. -Identify the major obstacles to genuine assent in contracts. -Define mistake in the context of contract law.

intentional misrepresentation

A false representation of a material fact made by a party who either knows or believes that the factual claim is false or knows that there is no basis for the assertion. Scienter is clear.

fraudulent misrepresentation

A false representation of a material fact that is consciously false and is intended to mislead the other party.

innocent misrepresentation

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

negligent misrepresentation

A false statement of material fact made by a party who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Mistake

An erroneous belief about the facts of a contract at the time the contract is concluded. When a mistake occurs, legal assent is absent.

In the context of contract law, ______ is an untruthful assertion by one of the parties about a material fact.

Misrepresentation

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.

Unilateral mistake

The result of an error by one party about a material fact, that is, one that is important in the context of a particular contract.

Which of the following is true when there is a mutual mistake in a contract?

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

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

a material effect on the agreement 💜a contract for the sale of goods transaction that provided ambiguous bargaining power💜 an adverse effect on a party that did not agree to bear the risk of mistake at the time of the agreement a basic assumption about the subject matter of the contract

scienter

intent or knowledge

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

unilateral and mutual

In the context of contract law, which of the following is true about the action of courts when there is a unilateral mistake in a contract?

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

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

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

In the context of contract law, which of the following is true about 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.💜 It is a true statement about a fact material to an agreement that the person who made the statement believed to be false. It is a false statement about a fact unimportant to an agreement that the person who made the statement believed to be false. It is a false statement about a fact unimportant to an agreement that the person who made the statement believed to be true.

Which of the following conditions would not permit a court to invalidate a contract on the grounds of unilateral mistake?

💜One party entered into the contract as a result of sales talk, or "puffery."💜 One party made a mistake about a material fact, and the other party knew about the mistake. One party made a mistake about a material fact and the other party had reason to know about the mistake. The mistake was caused by a clerical error that did not result from gross negligence.

Duress

Any unlawful threat exercised on a person whereby the person is forced to enter into an agreement is known as ______.

Understand that a court _______ void a contract for a mutual mistake of both parties.

Will not