BL 202 - Chapter 12

Sophia threatens William with a gun so that he will sign a contract that he does not want to sign. This is an example of:

Duress.

Which obstacle to genuine asset exists when one party is forced into an agreement by the wrongful act of another?

Duress.

A unilateral mistake of a material fact generally voids a contract.

False.

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

False.

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

False.

What degree of trust generally exists when a party is able to unduly influence another party?

High.

If a person makes a false statement with no knowledge of the falsity of the claim, then the misrepresentation is:

Innocent.

If Carol makes a statement to another party that she thinks is true but could have known the statement was false if she used reasonable care, then the misrepresentation is:

Negligent.

For a mutual mistake to interfere with legal consent, it must involve all but which of the following?

One party made a mistake about a material fact and the other party had reason to know about the mistake.

If a party rescinds a contract, what must they do with whatever they received from the other party?

The party must return it.

Which of the following is not an example of duress??

Threat of a nonfrivolous civil lawsuit.

A voidable contract may be rescinded.

True.

Nondisclosure is the failure to provide pertinent information about a projected contract.

True.

Which of the following is not generally an obstacle to genuine assent in a contract?

Unilateral mistake.

A misrepresentation is an untruthful assertion by one of the parties about a:

material fact.

Courts will usually not interfere with a mistake that is:

regarding the value of an item in question.

A unilateral contract may be rescinded if:

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

Rescission for a unilateral mistake is permitted if:

the mistake was made about a material fact and the other party knew about the mistake.

Lisa is George's attorney. If Lisa convinces George to change his will and leave Lisa $50,000, the will may be voidable due to:

undue influence.

Taking advantage of one's dominant position in a relationship to unduly persuade the other party is known as:

undue influence.