Exam 13: Voluntary Consent

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Moe threatens physical harm to force Nora to contract to pay him for protecting her restaurant, Pasta Plates, from vandalism. Nora may

Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respec-tively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

Fact Pattern 13-4 In selling a warehouse, Riley tells Sam that he knows that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Refer to Fact Pattern 13-4. Riley's knowledge that facts were falsely represented to Sam is known as

S cienter clearly exists if a party knows a fact is not as stated.

Dix agrees to sell Eli, for $1,500, a remote parcel of land. Soon after, the land becomes much more valuable due to the construction of a new highway nearby. A court would

When both parties to a contract are mistaken about the same material fact, a unilateral mistake has occurred.

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of

Fact Pattern 13-1 Data Storage Inc. offers to provide cloud-computing 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. Refer to Fact Pattern 13-1. Enterprise's best argument in favor of enforcement of the contract is that

A material fact is a fact that is important and central to the subject matter of a contract.

Misrepresentation of law does not ordinarily entitle a party to avoid a contract.