Chap 12 sb reality of assent
Which of the following refers to the failure to provide pertinent information about a projected contract?
nondisclosure
In the context of contract law, ______ is an untruthful assertion by one of the parties about a material fact.
misrepresentation
The failure to provide pertinent information about a projected contract is known as ______.
nondisclosure
When an innocent misrepresentation occurs, the person who made the false statement had no knowledge of the falsity of the claim. This means the person lacked ______.
scienter
Scienter means ______.
knowledge
The courts insist that there must be a _________ of the minds for there be a valid contract between the parties.
meeting
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
In the context of contract law, which of the following is an accurate statement regarding the legal implications of a unilateral mistake?
A negligent misrepresentation
In the context of a contract, ______ is found when one party in the contract was forced into the agreement by the wrongful act of another.
duress
Which of the following is a major obstacle to genuine assent in contracts?
undue influence
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.
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
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
Legal assent is ________ when a legal mistake occurs.
absent
When legal assent to a contract is present both parties to a contract are ________ to have freedom to enter into the contract.
assumed
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
Which of the following is present when the party making the false statement in an agreement claims or implies that he or she has personal knowledge of the accuracy of the assertion?
intent to deceive
__________ by any party as part of a contract is a basis for rescission.
Fraud
Which of the following is a major obstacle to genuine assent in contracts?
a mistake
Which of the following conditions would not permit a court to invalidate a contract on the grounds of unilateral mistake? Multiple choice question. The mistake was caused by a clerical error that did not result from gross negligence. One party made a mistake about a material fact and the other party had reason to know about the mistake. One party made a mistake about a material fact, and the other party knew about the mistake. One party entered into the contract as a result of sales talk, or "puffery."
One party entered into the contract as a result of sales talk, or "puffery."
All but which of the following circumstances would trigger a successful request for contract rescission on the basis of duress? Multiple choice question. One party threatens the other's economic interests. One party is mistaken about a material fact pertaining to the contract. One party threatens to file a criminal lawsuit unless consent is given to the terms of the contract. One party threatens extortion to gain consent to a contract.
One party is mistaken about a material fact pertaining to the contract.
Understand that a court _______ void a contract for a mutual mistake of both parties
will not
Which of the following conditions would permit a court to invalidate a contract on grounds of unilateral mistake?
The mistake was so serious that the contract is unconscionable.
______ 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
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
For a mutual mistake to interfere with legal consent, it must involve all but which of the following? Multiple choice question. an adverse effect on a party that did not agree to bear the risk of mistake at the time of the agreement a contract for the sale of goods transaction that provided ambiguous bargaining power a material effect on the agreement a basic assumption about the subject matter of the contract
a contract for the sale of goods transaction that provided ambiguous bargaining power
In the context of contract law, which of the following terms refers to an erroneous belief about the facts of a contract at the time the contract is concluded?
a mistake
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 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
Any unlawful threat exercised on a person whereby the person is forced to enter into an agreement is known as ______.
duress
Fraudulent misrepresentation is ______ misrepresentation.
intentional
All but which of the following circumstances would trigger a successful request for contract rescission on grounds of duress? Multiple choice question. One party intimidates another with physical harm to gain consent to a contract. One party realizes after the contract is formed that the agreement is a "bad bargain." One party threatens to file a criminal lawsuit unless consent is given to the terms of the contract. One party threatens physical harm to gain consent to a contract. One party threatens the other's economic interests.
One party realizes after the contract is formed that the agreement is a "bad bargain."
Which of the following is not one of the elements required for a finding of fraudulent misrepresentation in a contract? Multiple choice question. justifiable reliance on the false statement by the innocent party to the agreement a false statement about a fact that is unimportant to the contract intent to deceive a false statement about a past or existing fact that is material to the contract
a false statement about a fact that is unimportant to the contract
Which of the following is not one of the elements required for a finding of fraudulent misrepresentation in a contract? Multiple choice question. a preexisting commercial relationship between the parties in the agreement a false statement about a past or existing fact that is material to the contract intent to deceive justifiable reliance on the false statement by the innocent party to the agreement
a preexisting commercial relationship between the parties in the agreement