Business Law Chapter 17 quiz
For a mutual mistake to interfere with legal consent it must involve all but which of the following?
A non-material effect on the agreement
Major obstacles to legal assent include all but which of the following?
Dire straits
The essential element of undue influence is the existence of a(n) __________ relationship
Dominant-subservient
A(n) __________ results from a false statement about a fact material to an agreement that the person making it believed to be true
Innocent misrepresentation
A fraudulent misrepresentation is also referred to as __________ misrepresentation
Intentional
Fraudulent Misrepresentation (Definition)
Intentional, untruthful assertion of material fact by contracting party; aggrieved party can rescind contract, and sue for damages
A __________ is an untruthful assertion by one of the parties about a fact material to their agreement
Misrepresentation
Mutual (bilateral) mistake
Mistake made by both parties; if mutual mistake of material (significant) fact, either party can rescind contract
Unilateral Mistake
Mistake made by one contracting party; generally, contract still binding
In contract law a __________ is an erroneous belief about the facts of the contract __________
Mistake of fact; at the time the contract is concluded
A __________ mistake is an error made by both parties to the agreement
Mutual
In some contract negotiations, one party makes a statement of material fact that he or she thinks is true. If he or she could have known the truth by using reasonable care to discover or reveal it, the statement is a(n) __________ misrepresentation
Negligent
Negligent Misrepresentation
Negligent, untruthful assertion of material fact by contracting party; aggrieved party can rescind contract, and sue for damages
Unconscionablity
Occurs when one party has so much relative bargaining power that he/she effectively dictates terms of contract, resulting in situation where dominated party, in essence, lacks free will
Duress
Occurs when one party threatens other with wrongful act unless assent given
Undue Influence
Persuasive efforts of dominant party, who uses special relationship to interfere with other's free choice of terms
legal assent (definition)
Promise to buy or sell courts will require parties to obey
All but which of the following conditions would permit a court to invalidate a contract on the grounds of unilateral mistake?
The mistake was so serious that the contract is conscionable
mistake
erroneous beliefs regarding material facts of contract at time agreement made
Innocent Misrepresentation
when party making false assertion believes it to be true, and is not negligent in making false assertion; although innocent misrepresentation permits misled party to rescind contract, he/she cannot sue for damages