Bus Law Exam #2 Ch. 12: Contracts - Assent (Study Quiz)

Which of the following is a much more visible and active inference with free will than undue influence? Multiple Choice Assent Misrepresentation Mistake Duress

Duress

What exists if one party threatens the other party with physical harm to gain consent to a contract? Multiple Choice Misrepresentation Duress Mistake Undue influence

Duress`

Which of the following in not generally an obstacle to genuine assent in a contract? Multiple Choice Unilateral mistake Misrepresentation Undue influence Duress

Unilateral mistake

Nondisclosure occurs when a party tries to hide the truth about an important fact of the agreement.

false

A misrepresentation is an untruthful assertion by one of the parties about a __________. Multiple Choice material fact issue of law inadmissible evidence clerical error

material fact

A mutual mistake of a material fact generally makes a contract voidable.

true

A voidable contract may be rescinded.

true

Scienter is present when the party accused of making a fraudulent assertion believed that the assertion was false.

true

Jane is Harriet's caregiver. If Jane convinces Harriet to change her will and leave Jane all of her possessions, the will may be voidable due to __________. Multiple Choice duress undue influence misrepresentation unilateral mistake

undue influence

Taking advantage of one's dominant position in a relationship to unduly persuade the other party is known as __________. Multiple Choice bullying duress misrepresentation undue influence

undue influence

Which obstacle to genuine asset exists when one party is forced into an agreement by the wrongful act of another? Multiple Choice Mistake Duress Undue influence Misrepresentation

Duress

What degree of trust generally exists when a party is able to unduly influence another party? Multiple Choice Depleted High Low Moderate

High

Courts will not rescind a contract for a misrepresentation made by one party.

false

A unilateral contract may be rescinded if: Multiple Choice One party made a mistake about a material fact and the other party either did not know or have any reason to know about the mistake. The mistake was caused by a clerical error that did not result from gross negligence. The mistake was not so serious that the contract is unconscionable. The mistake was caused by a clerical error that resulted from gross negligence.

The mistake was caused by a clerical error that did not result from gross negligence.

Which one of the following conditions does not generally exist for a mutual mistake to interfere with legal consent? Multiple Choice The mutual mistake has a material effect on the agreement. The mutual mistake causes an adverse effect on a party that did not agree to bear the risk of the mistake. The mutual mistake is regarding a basic assumption of the subject matter of the contract. The mutual mistake is a mistake of value.

The mutual mistake is a mistake of value.

Which of the following is true of a mutual mistake? Multiple Choice The mistake is caused by a clerical error that resulted from gross negligence. One party makes a mistake about a material fact that the other party is ignorant of. A contract entered into based on mutual mistake can be rescinded by either party. The mistake does not have material effect on the agreement.

A contract entered into based on mutual mistake can be rescinded by either party.

Which of the following describes a false statement about a fact material to an agreement that the person who made the statement believed to be true? Multiple Choice Fraudulent misrepresentation Negligent misrepresentation Intentional misrepresentation Innocent misrepresentation

Innocent misrepresentation

If a party rescinds a contract, what must they do with whatever they received from the other party? Multiple Choice Must return it. Can sell it but must share the profits with the other party. Can sell it and keep all the profits. May keep it.

Must return it.

Which type of misrepresentation exists when the party making the statement would have known the truth about the fact had it used reasonable care to discover it? Multiple Choice Fraudulent misrepresentation Innocent misrepresentation Negligent misrepresentation Intentional misrepresentation

Negligent misrepresentation

A contract based on a unilateral mistake can be invalidated if one party made an error about a material fact and the other party __________. Multiple Choice had no reason to know about the mistake had no knowledge of the mistake made a mistake also knew about the mistake

knew about the mistake