Chapter 13

Genuineness of assent may be missing because a party entered into a contract based on​ _____, fraudulent​ misrepresentation, or​ _____. A. consideration; duress B. duress; acceptance C. mistake; duress D. consideration; acceptance E. mistake; acceptance

C. mistake; duress

In which situation can a mistaken party NOT rescind the​ contract? A. mutual mistake of a material fact B. unilateral mistake of a material fact where the other party knew of the mistake C. mutual mistake of value D. when the mistake is so serious that enforcing the contract would be unconscionable E. when a mistake occurs because of a clerical error that is not the result of gross negligence

C. mutual mistake of value

A fiduciary or confidential relationship must have existed between the parties in a contract in order to prove​ _______. A. rescission B. duress C. undue influence D. intentional misrepresentation

C. undue influence

Mr.​ Smith, an 85 year old man who has​ dementia, has a​ live-in nurse, Michelle. When Mr. Smith passes away it is later discovered that Mr. Smith left a large sum of money in his will to Michelle. This change in his will occurred 3 months prior to his death. This is considered undue influence if Michelle​ ________________. A. threatened to harm his family if he​ didn't change his will B. made a mutual mistake C. used her position as a nurse to unduly influence Mr. Smith to change his will D. made an intentional misrepresentation. E. made a unilateral mistake

C. used her position as a nurse to unduly influence Mr. Smith to change his will (you must prove​ (1) a fiduciary or confidential relationship must have existed between the parties in a​ contract, and​ (2) the dominant party must have unduly used his or her influence to persuade the servient party to enter into a contract. In this case Michelle was in a fiduciary relationship with Mr. Smith as his nurse. If she unduly influenced​ him, this would be undue influence.)

A mistake made by both parties concerning a material fact that is important to the subject matter of a contract is known as​ a(n) _____ mistake of a material fact. A. unilateral B. subjective C. reasonable D. objective E. mutual

E. mutual

Which of the following is an INCORRECT statement regarding undue​ influence? A. Courts may permit the​ modification, but not the​ rescission, of a contract based on the doctrine of undue influence. B. Undue influence is an equitable doctrine. C. To prove undue​ influence, it must be shown that the dominant party unduly used his or her influence to persuade the servient party to enter into a contract. D. A contract that is entered into because of undue influence is voidable by the innocent party. E. To prove undue​ influence, it must be shown that a fiduciary or confidential relationship existed between the parties.

A. Courts may permit the​ modification, but not the​ rescission, of a contract based on the doctrine of undue influence.

An ambiguity in a contract may constitute​ __________. A. a mutual mistake of a material fact B. duress C. genuineness of assent D. rescission E. intentional misrepresentation

A. a mutual mistake of a material fact

A contract may not be enforced if the​ _____ of one or both parties to the contract was not genuine or real. A. assent B. disclaimer C. mutual mistake D. dissent E. unilateral mistake

A. assent

If there has been a mutual​ mistake, the contract may be​ ______ on the grounds that no contract has been formed because there has been no​ "meeting of the​ minds." A. rescinded B. enforced C. found valid D. required E. binding

A. rescinded

_____ occurs when one party threatens to do some wrongful act unless the other party enters into a contract. A. Frustration of purpose B. Commercial impracticability C. Duress D. Substantial performance E. Undue influence

C. Duress

To prove​ ________, one of the elements of​ fraud, the person making the misrepresentation must have either had knowledge that the representation was false or made it without sufficient knowledge of the truth. A. injury to the innocent party B. intent to deceive C. mutual mistake D. misrepresentation of a material fact E. reliance on the misrepresentation

B. intent to deceive

An event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation is known as which of the​ following? A. genuineness of assent B. intentional misrepresentation C. a unilateral mistake D. duress E. rescission

B. intentional misrepresentation (AKA fraud)

To prove​ __________________, an element of​ fraud, the misrepresentation must have been a significant factor in inducing the innocent party to enter into the contract. It need not have been the sole factor. A. intent to deceive B. misrepresentation of a material fact C. a mutual mistake D. injury to the innocent party E. reliance on the misrepresentation

B. misrepresentation of a material fact

Which of the following is an INCORRECT statement regarding the elements of intentional misrepresentation​ (fraud)? A. To prove​ fraud, the plaintiff must establish that he or she was injured. B. To prove​ fraud, the plaintiff must establish that the innocent party justifiably relied on the misrepresentation. C. To prove​ fraud, the plaintiff must establish that the wrongdoer made a false representation of a​ non-material fact. D. To prove​ fraud, the plaintiff must establish that the wrongdoer intended to deceive the innocent party. E. A misrepresentation of a material fact by the wrongdoer may occur by oral or written words.

C. To prove​ fraud, the plaintiff must establish that the wrongdoer made a false representation of a​ non-material fact.

_____ occurs when one person takes advantage of another​ person's mental,​ emotional, or physical weakness and unduly persuades that person to enter into a contract. A. Economic duress B. Promissory estoppel C. Undue influence D. Commercial impracticability E. Physical duress

C. Undue influence

A mistake made by both parties concerning a material fact that is important to the subject matter of a contract is known as​ ________. A. rescission B. genuineness of assent C. a mutual mistake of a material fact D. duress E. a unilateral mistake

C. a mutual mistake of a material fact

Which of the following is an INCORRECT statement regarding the elements of intentional misrepresentation​ (fraud)? A.Statements of opinion generally do not form the basis for fraud. B. The​ wrongdoer's intent to deceive the innocent party can be inferred from the circumstances. C. Predictions about the future generally do not form the basis for fraud. D. A misrepresentation of a material fact cannot occur by the conduct of a party. E.The innocent​ party's justifiable reliance on the​ wrongdoer's misrepresentation is generally found unless the innocent party knew that the misrepresentation was false or was so extravagant as to be obviously false.

D. A misrepresentation of a material fact cannot occur by the conduct of a party.

________ may be missing because a party entered into a contract based on​ mistake, fraudulent​ misrepresentation, or duress. A. Duress B. Intentional misrepresentation C. Rescission D. Genuineness of assent E. A unilateral mistake

D. Genuineness of assent

Genuineness of assent is defined as​ ________. A. a mistake in which only one party is mistaken about a material fact B. an action to undo a contract C. a mistake of fact made by both parties D. the requirement that a​ party's assent to a contract be genuine E. a fact that is important to the subject matter of a contract

D. the requirement that a​ party's assent to a contract be genuine

Which of the following is an INCORRECT statement regarding​ duress? A. The threat to commit extortion unless someone enters into a contract constitutes duress. B. A threat to bring a criminal lawsuit unless someone enters into a contract constitutes duress even if the criminal lawsuit is​ well-founded. C. A threat to bring a civil lawsuit does not constitute duress unless such a suit is frivolous or brought in bad faith. D. Duress can occur where a threat does not involve physical harm. E. If someone threatens to physically harm another person unless that person signs a​ contract, this is economic duress

E. If someone threatens to physically harm another person unless that person signs a​ contract, this is economic duress

Which of the following is an INCORRECT statement regarding a mutual mistake of a material​ fact? A. A material fact is a fact that is important to the subject matter of a contract. B. If there has been a mutual​ mistake, the contract may be rescinded on the grounds that no contract has been formed because there has been no​ "meeting of the​ minds" between the parties. C. An ambiguity in a contract may constitute a mutual mistake of a material fact. D. A mutual mistake of a material fact is a mistake made by both​ parties, while a unilateral mistake is made by only one party. E. A party may not rescind a contract if there has been a mutual mistake of a material fact.

E. A party may not rescind a contract if there has been a mutual mistake of a material fact.

All of the following are possible remedies for lack of genuine assent​ EXCEPT? A. voiding the contract B. damages to give the innocent party the benefit of the bargain C. restitution D. rescission E. enforcing the contract against the innocent party

E. enforcing the contract against the innocent party

The requirement that a​ party's assent to a contract be genuine is known as which of the​ following? A. intentional misrepresentation B. rescission C. a unilateral mistake D. duress E. genuineness of assent

E. genuineness of assent

To prove​ ___________, an element of​ fraud, the innocent party to whom the misrepresentation was made must have relied on the misrepresentation and acted on it. A. injury to the innocent party B. a mutual mistake C. intent to deceive D. misrepresentation of a material fact E. reliance on the misrepresentation

E. reliance on the misrepresentation

The dominant party in a contract must have unduly used his or her influence to persuade the servient party to enter into a contract in order for there to be​ ________. A. duress B. intentional misrepresentation C. a unilateral mistake D. rescission E. undue influence

E. undue influence