BLAW CH12 SB

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.

In the context of contract law, which of the following is an accurate statement regarding the legal implications of a unilateral mistake?

In general, a unilateral mistake does not void a contract.

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.

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

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

Identify a true statement about rescinding a contract due to a mutual mistake.

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

______ 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

______ 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 is a major obstacle to genuine assent in contracts?

a mistake

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 ______ 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.

a negligent misrepresentation

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

a preexisting commercial relationship between the parties in the agreement

In the context of contract law, ______ 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

A seller removes 20,000 miles from a car odometer before selling the car to a buyer. This is known as ______.

concealment

In the context of contract law, ______ involves the active hiding of the truth about a material fact in a contract.

concealment

In the context of contract law, 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 the context of contract law, misrepresentation is an untruthful assertion by one of the parties about a(n) ______ fact.

material

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

misrepresentation

In the context of contract formation, a(n) ______ mistake is shared by both parties to the agreement.

mutual

When both parties to a contract are mistaken about either a current or a past material fact, it is referred to as a(n) ______ mistake.

mutual

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

undue influence

In the context of contract formation, a ______ mistake is an error by one party about a material fact pertaining to the contract.

unilateral

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

unilateral and mutual

______ is 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.

A negligent misrepresentation

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

nondisclosure

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

nondisclosure

Fraudulent misrepresentation is ______ misrepresentation.

intentional