Exam 13: Reality of Consent

A mistake of law will not justify a recession in a contract.

Threats to institute legal actions cannot be considered improper threats that constitute duress.

A party who has the right to rescind a contract may do so at any time.

Which tort involves misrepresentation or cheating by means of some device?

Generally,if there is a good faith dispute over a matter,a person's threat to file a lawsuit to resolve that dispute is considered to be improper.

Which of the following would satisfy the "untrue assertion of fact" element for misrepresentation and fraud claims?

Which of the following must a person prove to rescind a contract if the misrepresentation was innocent?

Jill Homeowner contracts with Ralph Roofer for Ralph to reshingle Jill's roof.Midway through the job,Ralph says that he cannot finish unless Jill promises to pay him an additional $500.There is no real basis for this demand;Ralph just wants more money.Even though she could have gotten one of six other roofers to finish the job at a reasonable price,Jill gives in and promises to pay the $500,after which Ralph completes the job.Later,Jill refuses to pay the additional $500,and Ralph sues her.Jill defends on the basis of duress.What are the chances of this defense working?

A(n)________ misrepresentation is not intentionally deceptive.

Assuming that the economic condition of the country is progressing,Peter entered into a contract with John for the sale of substantial amount of shares of his company for consideration of $1,000,000.However,due to a slump in the market in the next few months,Peter lost heavily.This would lead to:

Sue wanted to purchase a car.She went to "Honest Bob's" used car sales.She was interested in a classic 1956 Jaguar XK 140 Roadster.Bob told her "this is a great car-it runs like a dream,it is a sweet ride." Bob's statements are legally considered to be:

James entered into a contract to sell his house to Mikhael.James knows that the house has a bad termite infestation that significantly reduces the value of the house.However,the topic of termites never came up and James did not volunteer any information about the termites.Mikhael is not aware of the termite problem.Under the law of most states,has legal misrepresentation occurred here?

For a purchaser of land to avoid a contract with the seller based on duress,it must be shown that the seller's improper threats:

Which of the following is most likely to constitute a misstatement that can give rise to fraud or misrepresentation liability?

Bob's threat to breach an existing contract unless Lauren makes another contract with Bob is considered:

Paco Corp. ,a building contractor,offered to sell Roy several pieces of used construction equipment.Roy,engaged in the business of buying and selling equipment,accepted the offer.Paco's written offer had been prepared by a secretary who typed the total price as $10,900,rather than $109,000,which was the approximate fair market value of the equipment.Paco learned of the error in the offer and refused delivery of the equipment unless Roy agreed to pay $109,000.Roy sued Paco for breach of contract.Which of the following scenarios is the likely outcome?

Which of the following ends the right to rescind a voidable contract?

Jean agrees to lease Steven the fourth floor of his house.Jean,by himself,resides on the second floor.The person typing the contract strikes the wrong key,and the contract reads the leased portion as the "second floor." Neither Jean nor Steven notices this error when they read and sign the contract.What will the courts do in the case of a dispute?

________ is a wrongful coercion that induces a person to enter or modify a contract.

In some states,a party injured by fraud can both rescind the contract and sue for damages.