Blaw smartbook chapter 12

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

A mistake

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

Intent to deceive

All but which of the following conditions would 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".

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

One party is mistaken about a material fact pertaining to the contract.

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.

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

There is a failure to correct an assertion of fact no longer true in light of events that have occurred since the agreement was initially formed.

_______ assumes that the persuasive efforts of the dominant person must have interfered with the ability of the weaker person to make his or her own decision.

Undue influence

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 to the contract.

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

concealment

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

consideration

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

duress

Fraudulent misrepresentation is ______ misrepresentation.

intentional

Misrepresentation is an untruthful assertion by one of the parties about a(n) _______ fact.

material

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

nondisclosure

When a contract is voidable, it may be _____, or canceled.

rescinded

A(n)_______ mistake is an error by one party about a material fact pertaining to the contract.

unilateral

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

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

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

An innocent misrepresentation

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.

When an innocent misrepresentation occurs, the person who made the false statement had no knowledge of the falsity of the claim. This means the person lacked ________.

scienter

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

voidable

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").

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

business to business

In some contract negotiations, one party makes a statement of material fact he or she thinks is true but 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