Exam 15: Mistakes, Fraud, and Voluntary Consent

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

A unilateral mistake always gives the mistaken party a right to relief from the contract.

Intent to deceive is an element of fraud.

Bob wants to sell his recreational vehicle (RV) for $21,000. He e-mails Curt with an offer, but mistakenly types that the price is $20,100. Curt accepts the offer and pays Bob $20,100. Bob

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

Misrepresentation of law ordinarily entitles a party to relief from a contract.

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

At an auction, Benny 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 Benny estimated, and thus is worth less as is, Benny is

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

Lee applies to Marketing Corporation for a position as a software engineer. Lee has no training in computers or programming and no background as an engineer. After Lee is hired, Marketing learns the truth. The employer can rescind the contract on the basis of

Fact Pattern 15-1​ Data Storage Inc. offers to provide cloud-computing services to Enterprises, LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprises accepts the written offer. -Refer to Fact Pattern 15-1. Enterprises' best argument in favor of enforcement of the contract is that

When a naïve purchaser enters into a contract in reliance on the opinion of an expert, the innocent party is not entitled to rescind the deal.

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to

Any party who does not receive what he or she considers a fair bargain can argue mistake.

Dennis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Dennis is most likely liable for

​The identity of one of the parties to a contract is an example of a material fact.

Reformation occurs when a court alters the terms of a contract to reflect the true intent of the parties.

All mistakes of fact are material.

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of

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