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