Exam 14: Mistakes, Fraud, and Voluntary Consent

Gary threatens physical harm to force Hugh to sell his business, Imported Goods, Inc., to Gary for a below-market price. This is

Misrepresentation of a material fact can occur through words alone.

Overestimating the value of an object is a mistake for which a court will normally provide relief.

Altering contract terms to reflect the true intentions of the parties is a rescission.

Joy induces Kelly to enter into a contract for the purchase of a condominium about which Joy knowingly misrepresents a number of material features. When Kelly discovers the truth, Kelly can

Harold believes his old baseball bat has little value, but Murray is con?vinced it is a valu?able collector's item. Harold sells it to Murray for $100 before learning it is worth $1,000. The contract

Jill and Karl contract for the sale of Jill's horse for $1,000. Unknown to either party, the horse has died. Karl is

Fact Pattern 14-B3 Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to per?form, Ripe Produce files a suit to enforce the contract. -Sam uses duress to force Tanya to agree to pay him for protecting her re?tail store against the vandalism and destruction. Tanya may

Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is

An innocent party can rescind a fraudulent contract.

Dale files a suit against Eve, alleging her fraud in entering into a con?tract with him. Proof of an injury is required

A mistake of fact cannot be unilateral.

Fact Pattern 14-A2 Moore Properties, Inc., offers in writing to sell to New Development Corporation a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000." -Refer to Fact Pattern 14-A2. Moore's misstatement of the price is

An innocent party can enforce a fraudulent contract.

Fact Pattern 14-B3 Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to per?form, Ripe Produce files a suit to enforce the contract. -Refer to Fact Pattern 14-B3. If Pete and Ripe Produce are in a state that does not recognize the doctrine of unconscionability, to defend suc?cess?fully against enforce?ment of the contract on similar grounds, Pete might rely on traditional notions of

Owen, a famous chef, sells to Pat a restaurant that Owen closed years ago. Pat discovers in the restaurant a collection of Owen's recipes, which are considered valuable. In a suit to obtain the recipes, Owen will likely

An expert's false statement to a naive buyer about a technical detail will not usually entitle the buyer to rescind a contract.

Fact Pattern 14-B1 Gert contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. -Refer to Fact Pattern 14-B1. The parties' belief about the adjacency of the property is

Fact Pattern 14-B1 Gert contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. -Refer to Fact Pattern 14-B1. Because of the parties' belief about the adjacency of the property, their contract is

Scienter exists if a party makes a statement that he or she does not be?lieve is true.