Exam 13: Reality of Consent

Ratification ends the right to rescind a contract.

David entered into a contract to sell Ruth a parcel of land fully aware that Ruth's intention of the purchase was to construct a high-rise commercial building.David was also aware that the subsurface soil condition of the property would prevent such construction.The soil condition was not readily discoverable in the course of normal inspections or soil evaluations.David did not disclose the existence of the condition to Ruth,nor did Ruth make any inquiry of David as to the suitability of the land for the intended development.David's silence as to the soil condition:

Jim,the CEO of Maple,Inc. ,signed a few papers that Amanda,his secretary,presented to him.Unknown to Jim,Amanda had carefully slipped in a contract for the sale of Jim's home to her in the papers.If Amanda seeks to enforce the contract,Jim's best defense to have the contract declared void would be:

Which of the following is a ground for avoidance of a contract based on a unilateral mistake?

Which term references threats or coercion that is used by one party to a contract to force another to agree to a contract?

Joe sells his business to Shirley.During the negotiations,Joe negligently tells Shirley that the business has earned a profit for the last five years.In reality,the business operated at a loss for each of those years.However,Shirley did not hear Joe's misstatement.Shirley cannot rescind the contract because:

Hally took advantage of a confidential,trusting relationship with Gwyn when they entered into a contract.Now,Gwyn can seek remedy based on:

Business compulsion is another term for:

The term for when both parties to a contract are mistaken about the same fact is called?

Duress involves threats and coercion while undue influence involves persuasion to susceptible individuals.

In contract law,________ refers to taking active steps to prevent another from learning the truth.

Which of the following is a remedy in the case of an erroneous expression of an agreement due to an error in drafting?

Threatening to breach a contract unless the party agrees to modify the terms of a contract is an example of economic duress.

Which of the following statements about ratification is false?

Which of the following means not utterly null,but annullable?

A(n)________ misrepresentation is made with knowledge of falsity and intent to deceive.

Joe Loser enters into an investment scheme with some reputed financiers.To get Joe's money,these people lie to Joe about several present facts that are critical to the investment scheme.Later,Joe sues to rescind the investment contract on the basis of fraud.While Joe is on the stand,the attorney for the other parties asks him: "Mr.Loser,why did you enter this deal in the first place?" Joe says: "For the one and only reason: I admired these men tremendously and figured that any deal good enough for them was a deal I wanted in on too.The details didn't matter;if they were in it,I wanted to be in it too." Joe has just blown his fraud case.Why?

As demonstrated in the case in the text,Stephen A.Wheat Trust v.Sparks,concealment can provide a basis for a claim of fraud.Which of the following statements about concealment is false?

Contracts that are induced by misrepresentation are considered:

Which of the following relationships is unlikely to provide a basis for an undue influence case?