Exam 13: Genuineness of Assent and Undue Influence

________ occurs when the party knows what he or she is signing but has fraudulently been led into the contract.

Gary and Mary are siblings involved in a legal tangle over who gets possession of their ancestral home. Gary threatens to kill Mary's husband if she does not sign papers declaring Gary's sole ownership of their home. This is an instance of ________.

The measure of damages from a misrepresentation is ________.

When one party takes specific action to cover a material fact from another party, fraud by enticement occurs.

Kevin goes to the store to purchase a fully automatic washing machine. He browses through several models of washing machines, but does not let the salesperson know that he wants a fully automatic model. While signing the sales contract, he does not notice that the model he is purchasing is a semi-automatic machine. After purchase, which of the following options does Kyle have?

John buys a watch for $100 at a vintage store. Later, the store learns that the watch was worn by Sean Connery in a James Bond movie and wishes to rescind the sales contract they have with John. Which of the following statements is true in this scenario?

Explain fraud in the inducement with an example.

In which of the following cases of assent is the rescission of a contract unenforceable?

Which of the following is true of misrepresentation of a material fact?

Which of the following is true of duress?

An action to undo a contract is called restitution.

Which of the following constitutes a mutual mistake of a material fact?

A threat to bring a civil lawsuit does not constitute duress unless such a suit is frivolous or brought in bad faith.

Melissa Harrison, a realtor, sells a house to the Smiths. Before the sale is finalized, Mr. Smith asks Melissa for details of repairs the house has undergone over the years. Melissa gives him details of minor repairs but hides all documents regarding a major plumbing defect that was repaired last year. Three months after the Smiths moved in, the defect reappeared flooding the first floor, damaging their expensive carpet and furniture. Melissa is liable for which of the following frauds?

What is physical duress?

A contract in which both parties are mistaken about the value of the object of the contract is considered ________.

Contracts involving fraud in the inception are void.

In most cases of a unilateral mistake, the mistaken party is permitted to rescind the contract.

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 ________.

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.