Question 1

Scienter clearly exists if a party knows a fact is not as stated.​

Accepted Answer

A) True 
 B)False

Question 2

Courts may award punitive damages in fraud actions.​

Accepted Answer

A) True 
 B)False

Question 3

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.​

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 10-1
County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken.
​
-Refer to Fact Pattern 10-1. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake involves​

Accepted Answer

A)  ​a material fact. 
B)  ​any fact. 
C)  ​value or quality. 
D)  ​any of the choices. 
A)  ​a material fact. 
B)  ​any fact. 
C)  ​value or quality. 
D)  ​any of the choices.

Question 5

Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is​

Accepted Answer

A)  ​duress. 
B)  ​fraud. 
C)  ​mistake. 
D)  ​undue influence. 
A)  ​duress. 
B)  ​fraud. 
C)  ​mistake. 
D)  ​undue influence.

Question 6

Fact Pattern 10-3 
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 10-3. The transaction between Grain and Hearty falls within the provision of the Statute of Frauds involving​

Accepted Answer

A)  ​collateral promises. 
B)  ​the one-year rule. 
C)  ​sales of goods. 
D)  ​secondary contracts. 
A)  ​collateral promises. 
B)  ​the one-year rule. 
C)  ​sales of goods. 
D)  ​secondary contracts.

Question 7

A party's oral agreement to pay another's debt is never enforceable.​

Accepted Answer

A) True 
 B)False

Question 8

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.​

Accepted Answer

A) True 
 B)False

Question 9

In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided​

Accepted Answer

A)  ​the e-mail is signed by the party against whom enforcement is sought. 
B)  ​the parties print and sign a hard copy of a document titled "Lease." 
C)  ​there is outside evidence, such as a security deposit, of the lease. 
D)  ​no one else signs a lease for the apartment before Sam moves in. 
A)  ​the e-mail is signed by the party against whom enforcement is sought. 
B)  ​the parties print and sign a hard copy of a document titled "Lease." 
C)  ​there is outside evidence, such as a security deposit, of the lease. 
D)  ​no one else signs a lease for the apartment before Sam moves in.

Question 10

A price quotation with a mistake in the adding of a number of figures will never render a contract unenforceable.​

Accepted Answer

A) True 
 B)False

Question 11

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for​

Accepted Answer

A)  ​duress. 
B)  ​fraud. 
C)  ​mistake. 
D)  ​undue influence. 
A)  ​duress. 
B)  ​fraud. 
C)  ​mistake. 
D)  ​undue influence.

Question 12

In some states, an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel.​

Accepted Answer

A) True 
 B)False

Question 13

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.​

Accepted Answer

A) True 
 B)False

Question 14

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be​

Accepted Answer

A)  ​substantiated by reliable, external evidence. 
B)  ​signed in a sufficient manner by both parties. 
C)  ​in writing or evidenced by a written memorandum. 
D)  ​all of the choices. 
A)  ​substantiated by reliable, external evidence. 
B)  ​signed in a sufficient manner by both parties. 
C)  ​in writing or evidenced by a written memorandum. 
D)  ​all of the choices.

Question 15

​Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

Accepted Answer

A)  ​the appointment. 
B)  ​the purchase. 
C)  ​the employment agreement. 
D)  ​none of the choices. 
A)  ​the appointment. 
B)  ​the purchase. 
C)  ​the employment agreement. 
D)  ​none of the choices.

Question 16

An oral contract for a transfer of land is always enforceable.​

Accepted Answer

A) True 
 B)False

Question 17

When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.​

Accepted Answer

A) True 
 B)False

Question 18

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 mutual mistake. 
C)  ​avoid the contract due to a mistake in value. 
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 mutual mistake. 
C)  ​avoid the contract due to a mistake in value. 
D)  ​avoid the contract due to fraud.

Question 19

For a party to a contract to receive relief from a mistake, the mistake must involve a material fact.​

Accepted Answer

A) True 
 B)False

Question 20

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​

Accepted Answer

A)  ​opinion. 
B)  ​fraud. 
C)  ​mistake. 
D)  ​an adhesion contract. 
A)  ​opinion. 
B)  ​fraud. 
C)  ​mistake. 
D)  ​an adhesion contract.

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

Courts may award punitive damages in fraud actions.

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is

A party's oral agreement to pay another's debt is never enforceable.

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.

In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided

A price quotation with a mistake in the adding of a number of figures will never render a contract unenforceable.

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

In some states, an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel.

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

An oral contract for a transfer of land is always enforceable.

When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.

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

For a party to a contract to receive relief from a mistake, the mistake must involve a material fact.

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

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Exam 10: Defenses to Contract Enforceability

Scienter clearly exists if a party knows a fact is not as stated.​

Courts may award punitive damages in fraud actions.​

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.​

Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is​

A party's oral agreement to pay another's debt is never enforceable.​

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.​

In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided​

A price quotation with a mistake in the adding of a number of figures will never render a contract unenforceable.​

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for​

In some states, an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel.​

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.​

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be​

​Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

An oral contract for a transfer of land is always enforceable.​

When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.​

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​

For a party to a contract to receive relief from a mistake, the mistake must involve a material fact.​

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​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

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

Courts may award punitive damages in fraud actions.

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is

A party's oral agreement to pay another's debt is never enforceable.

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.

In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided

A price quotation with a mistake in the adding of a number of figures will never render a contract unenforceable.

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

In some states, an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel.

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be

Ben makes an appointment for a $50 haircut, buys a bike for $250, and agrees to work for Coding Associates for one year for $5,000 per month, starting at the beginning of next month. To be enforceable, a writing is required for

An oral contract for a transfer of land is always enforceable.

When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.

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

For a party to a contract to receive relief from a mistake, the mistake must involve a material fact.

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