Question 1

Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract.

Accepted Answer

A) True 
 B)False

Question 2

Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

Accepted Answer

A) fraudulent misrepresentation. 
B) undue influence. 
C) mistake. 
D) none of the choices. 
A) fraudulent misrepresentation. 
B) undue influence. 
C) mistake. 
D) none of the choices.

Question 3

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel-he was only trying to make a sale. This is

Accepted Answer

A) a mistake of value. 
B) a valid defense to a charge of fraud. 
C) fraudulent misrepresentation. 
D) puffery. 
A) a mistake of value. 
B) a valid defense to a charge of fraud. 
C) fraudulent misrepresentation. 
D) puffery.

Question 4

Ked, a real estate agent, assures Lida that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lida buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lida may recover damages for

Accepted Answer

A) the city's undue influence. 
B) the agent's fraudulent misrepresentation. 
C) the buyer's mistake. 
D) none of the choices. 
A) the city's undue influence. 
B) the agent's fraudulent misrepresentation. 
C) the buyer's mistake. 
D) none of the choices.

Question 5

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can

Accepted Answer

A) not avoid the contract because persons are assumed to know the law. 
B) avoid the contract due to a bilateral mistake. 
C) avoid the contract due to undue influence. 
D) avoid the contract due to fraud. 
A) not avoid the contract because persons are assumed to know the law. 
B) avoid the contract due to a bilateral mistake. 
C) avoid the contract due to undue influence. 
D) avoid the contract due to fraud.

Question 6

Exaggeration is an element of fraud.

Accepted Answer

A) True 
 B)False

Question 7

Forcing a party to enter into a contract under the fear of threats constitutes undue influence.

Accepted Answer

A) True 
 B)False

Question 8

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is

Accepted Answer

A) a bilateral mistake does not afford relief from a contract. 
B) a mistake of value does not afford relief from a contract. 
C) a unilateral mistake does not afford relief from a contract. 
D) the price was below the prices of comparable services. 
A) a bilateral mistake does not afford relief from a contract. 
B) a mistake of value does not afford relief from a contract. 
C) a unilateral mistake does not afford relief from a contract. 
D) the price was below the prices of comparable services.

Question 9

If a mistake concerns the quality of the object of the contract, the mistake is one of fact.

Accepted Answer

A) True 
 B)False

Question 10

A contract that includes a bilateral mistake may be rescinded if the mistake involves

Accepted Answer

A) a material fact. 
B) any fact. 
C) an opinion. 
D) none of the choices. 
A) a material fact. 
B) any fact. 
C) an opinion. 
D) none of the choices.

Question 11

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

Accepted Answer

A) Nan is not aware of the fact. 
B) the fact concerns the value or quality of the freezers. 
C) the fact is a serious defect known to Nan but not to Marc. 
D) any of the choices. 
A) Nan is not aware of the fact. 
B) the fact concerns the value or quality of the freezers. 
C) the fact is a serious defect known to Nan but not to Marc. 
D) any of the choices.

Question 12

Hua applies to Inventory Corporation for a position as a coder. Hua has no training in coding. After Hua is hired, Inventory learns the truth. The employer can rescind the contract on the basis of

Accepted Answer

A) none of the choices. 
B) fraudulent misrepresentation. 
C) mistake. 
D) undue influence. 
A) none of the choices. 
B) fraudulent misrepresentation. 
C) mistake. 
D) undue influence.

Exam 15: Mistakes Fraud and Voluntary Consent

Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract.

Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

Ked, a real estate agent, assures Lida that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lida buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lida may recover damages for

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can

Exaggeration is an element of fraud.

Forcing a party to enter into a contract under the fear of threats constitutes undue influence.

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is

If a mistake concerns the quality of the object of the contract, the mistake is one of fact.

A contract that includes a bilateral mistake may be rescinded if the mistake involves

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

Hua applies to Inventory Corporation for a position as a coder. Hua has no training in coding. After Hua is hired, Inventory learns the truth. The employer can rescind the contract on the basis of

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