Exam 13: Genuineness of Assent and Undue Influence

Intentional misrepresentation is commonly referred to as ________.

For a situation to be considered "undue influence," the persuasion by the wrongdoer must overcome the free will of the innocent party.

An ambiguity in a contract may constitute a mutual mistake of a material fact.

Contracts involving fraud in inducement are ________.

If there has been a mutual mistake,the contract cannot be rescinded.

Lucy wants a divorce from her husband but he wants to stay in the marriage.She threatens to bring a false criminal lawsuit claiming physical abuse from him if he does not sign the divorce papers.This is an instance of ________.

To prove fraud,which of the following elements must be shown?

________ is a situation in which one person takes advantage of another person's mental,emotional,or physical weakness and unduly persuades that person to enter into a contract.

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Alice offers Richard a chance to work in her affiliate marketing program which,she claims,will make him a millionaire in three months.Richard makes the "mandatory investment" of $12,000 and becomes an affiliate.Soon,he realizes that such a program does not exist and that Alice has disappeared with the money.This is an instance of ________.

A misrepresentation is considered fraud even if it is made without intent to deceive another party.

Which of the following is true of duress?

Joe buys a trailer from a used-car dealership.On enquiry,the dealer tells him that the trailer is in great condition.However,three days later,the trailer breaks down.Investigation by Joe reveals that the trailer had seven previous owners and that the engine has been replaced thrice.An automobile expert tells Joe that the trailer is dangerous.Which of the following frauds would the dealer be liable for?

Explain undue influence with an example.

If an innocent misrepresentation has been made,the aggrieved party may sue for damages.

To be actionable as fraud,the misrepresentation must have been the sole factor in inducing the innocent party to enter into the contract.

Intentional misrepresentation is considered fraud.

Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Misrepresentation of law is a fraud that occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not.

While signing a contract,one of the parties misinterpreted a legal clause.Neither of the parties is a legal professional.Which of the following statements holds well in this scenario?