chapter 10 short answer test

To rebut the presumption of undue influence, one should: A. merely show that the emotional state of the other party was primarily affected by other factors. B. make it evident that independent advice and full disclosure were available and that the consideration was adequate. C. None of these choices D. show that consideration was adequate, full disclosure was made, and the other party received independent and competent advice before completing the transaction.

- show that consideration was adequate, full disclosure was made, and the other party received independent and competent advice before completing the transactions.

Since rescission returns the parties to the positions they held before the contract was make: - All of these choices. - proof of an injury is universally required. - showing that defects were hidden and damaged the innocent party would be important. - showing that injury was done to the innocent party is unnecessary.

- showing that injury was done to the innocent party is unnecessary (because of rescission, if you were to seek damages, proof of injury would be required )

Duress can: A. be established if someone was threatened with an illegal act. B. not be a ground for the rescission of a contract. C. not be a defense to the enforcement of a contract. D. be established if someone is threatened with a lawsuit.

A. be established if someone was threatened with an illegal act.

If an integrated contract contains all of the terms of the parties' agreement, then it is said to be: a. partially integrated. b. completely integrated. c. nominally integrated. d. integrated in full.

B. completely integrated

A memorandum or note evidencing the oral contract needs to contain: A. the essential terms of the contract. B. None of these choices. C. the signatures of the parties. D. every term of the contract.

C. Signatures of the parties

Exceptions to the writing requirement of the Statute of Frauds include: a. admissions. b. partial performance. c. promissory estoppel. d. all of these choices.

D. All of these choices

Threatening to exercise a legal right: A. ordinarily constitutes duress. B. like blackmail, amounts to duress if used to pressure another person into an agreement. C. like extortion constitutes duress when employed to induce consent to a contract. D. ordinarily does not constitute duress.

D. ordinarily does not constitute duress.

An oral promise to answer for the debt of another is covered by the Statute of Frauds unless the guarantor's main purpose in incurring a secondary obligation is to secure a: A. None of these choices. B. business benefit. C. corporate benefit. D. personal benefit.

D. personal benefit

If the parties to a contract attach materially different meanings to a term in a contract, a court: - may decide there has been no true meeting of the minds. - will decide that the contract is nevertheless enforceable. - will refrain from consideration that the contract might be best rescinded. - may decide that the contract is unilateral.

May decide there has been no true meeting of the minds

Generally, a unilateral mistake does not afford relief from the contract, unless: - the unilateral mistake's negative consequences affect both parties in a comparably negative fashion. - the unilateral mistake's negative consequences fall only on the party that made the mistake. - the benefiting party knew or should have known that a mistake in fact was made. - the benefiting party is informed of the mistake in a timely fashion.

The benefiting party knew or should have known that a mistake had been made (OR) the mistake was a substantial mathematical mistake.

This would not be the dominate party in the relationship: A. the ward in a ward-guardian relationship. B. the physician in a physician-patient relationship. C. the attorney in an attorney-client relationship. D. a parent in a parent-child relationship.

The ward in a ward-guardian relationship

When a bilateral mistake occurs, normally the contract is: - voidable except when the parties had attached materially different meanings to an essential term of the contract. - voidable by the adversely affected party and can be canceled but not rescinded. - voidable by either party and can be rescinded or canceled. - nonetheless, enforceable.

Voidable by either party and can be rescinded or canceled

The key to determining whether parole evidence will be allowed is whether the written contract is intended to be a complete and final statement of the terms of the agreement. If it is so intended, extraneous evidence is excluded and the contract is referred to as an: a. express contract. b. integrated contract. c. executed contract. d. implied contract.

b. integrated contract

Negligent misrepresentation: - is normally called scientia, a Latin word meaning knowledge, science, or skill. - is always made with an intention to deceive. - can occur when a party did not exercise reasonable care in disclosing facts. - is not treated as fraudulent misrepresentation in most states.

can occur when a party did not exercise reasonable care in disclosing facts.

Fraudulent misrepresentation, generally, refers to a misrepresentation that: - might have induced the innocent party to act on the misrepresentation. - occurs in a hospitable environment. - concerned something in the transaction itself. - is consciously false and is intended to mislead.

consciously false and is intended to mislead another