Chapter 9 HW Quiz
Damien wants to buy a new truck, and after completing a credit application with the dealer, realizes that his credit score requires someone else to co-sign for the loan. He presents the financing agreement to his father to cosign. However, his father doesn't read well and Damien tells him the paperwork is a job application instead of a loan. His father signs. Later, Damien defaults on the loan, and the car dealership seeks to recover the loss from Damien's father. Damien's father claims the contract is void, due to:
a. fraud in the execution.
Jill contracts with James to sell a gemstone pendant for $100, believing the stone to be an attractive gemstone of modest value. After the sale, Jill realizes that the actual worth of the pendant is $1,000 and tries to void the contract with James. Jill's mistake as to the value of the gemstone is an example of a(n):
a. unilateral mistake.
Abel holds Nina at gunpoint and gets her to sign a contract agreeing to sell her yacht to him for a very low price. This is an example of:
b. duress.
Betty, an 88 year-old elderly woman, is physically and emotionally weak and very dependent on her in-home nurse, Nancy. Betty cannot walk or do other tasks well, due to her age, and Nancy cares for Betty every day. Over a series of weeks, Nancy convinces Betty to sign a contract to sell a parcel of land to Nancy for a very low price. Nancy overcomes Betty's concerns with a combination of persistence and bullying. This contract would be voidable, because of:
b. undue influence.
Which of the following is true of undue influence?
c. It refers to a person in a special relationship causing another's action contrary to free will.
Mary contracts to sell Rachel her violin for $10,000, based on an appraisal of the instrument. Their contract provides that even if the appraisal is later found to be mistaken, the sale price will not be altered. One month after the sale, Rachel learns that the violin is only worth $5000. Which of the following is true:
c. Because the contract specified what would happen in the case of a mistake, the sale price will not be altered.
A(n) _____ mistake occurs when only one party makes a mistake regarding the contract.
c. unilateral
