Question 1

A bilateral mistake occurs when both parties are mistaken about the same material fact.

Accepted Answer

A) True 
 B)False  True

Question 2

Bob wants to sell his recreational vehicle (RV) for $21,000. He e-mails Curt with an offer, but mistakenly types that the price is $20,100. Curt accepts the offer and pays Bob $20,100. Bob

Accepted Answer

A)   can avoid the deal due to a unilateral mistake.
B)   can avoid the deal due to a bilateral mistake.
C)   can avoid the deal due to a mistake of value.
D)   must deliver the RV. D

Question 3

One type of bilateral mistake can occur when a word or term in a contract is subject to more than one reasonable interpretation.

Accepted Answer

A) True 
 B)False  True

Question 4

Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is

Accepted Answer

A)   fraudulent misrepresentation.
B)   undue influence.
C)   mistake.
D)   duress.

Question 5

Persuasion that induces a person to act according to the will of the dominant party is undue influence .

Accepted Answer

A) True 
 B)False

Question 6

An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.

Accepted Answer

A) True 
 B)False

Question 7

The first element of proving fraud is to show that the innocent party is not easily fooled.

Accepted Answer

A) True 
 B)False

Question 8

Dennis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Dennis is most likely liable for

Accepted Answer

A)   fraudulent misrepresentation.
B)   undue influence.
C)   mistake.
D)   duress.

Question 9

Fraudulent misrepresentation is a tort.

Accepted Answer

A) True 
 B)False

Question 10

The reason that mistakes of value have legal significance is that value is invariable.

Accepted Answer

A) True 
 B)False

Question 11

If a contractor's bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.

Accepted Answer

A) True 
 B)False

Question 12

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Oil Inc. through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of

Accepted Answer

A)   duress.
B)   fraud.
C)   mistake.
D)   undue influence.

Question 13

Voluntary consent is not lacking if one or more of the parties is mistaken about an important fact concerning the subject matter of the contract.

Accepted Answer

A) True 
 B)False

Question 14

Honi, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

Accepted Answer

A)   mistake of law.
B)   undue influence.
C)   mistake of fact.
D)   none of these.

Question 15

The party on whom duress is exerted can choose to carry out the contract.

Accepted Answer

A) True 
 B)False

Question 16

A unilateral mistake does not give the mistaken party any right to avoid the contract.

Accepted Answer

A) True 
 B)False

Question 17

Fact Pattern 13 - 2 Owen, an employee of Plumbing & Pipes LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Construction Inc. is seeking bids. Consequently, Plumbing & Pipes' bid is significantly low.
Refer to Fact Pattern 13-2. The contract with Quality Construction that includes the mistake may be rescinded if the mistake was

Accepted Answer

A)   made inadvertently and without gross negligence.
B)   intentional.
C)   made with gross negligence.
D)   unilateral.

Question 18

Undue influence can arise from a confidential relationship or a relationship based on trust.

Accepted Answer

A) True 
 B)False

Question 19

Any party who does not receive what he or she considers a fair bargain can successfully argue mistake.

Accepted Answer

A) True 
 B)False

Question 20

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

Accepted Answer

A)   award allow the parties to rescind the contract.
B)   damages to Flora for the mistake.
C)   award damages to Global for the mistake.
D)   enforce the contract as is.

Exam 13: Voluntary Consent

A bilateral mistake occurs when both parties are mistaken about the same material fact.

Bob wants to sell his recreational vehicle (RV) for $21,000. He e-mails Curt with an offer, but mistakenly types that the price is $20,100. Curt accepts the offer and pays Bob $20,100. Bob

One type of bilateral mistake can occur when a word or term in a contract is subject to more than one reasonable interpretation.

Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is

Persuasion that induces a person to act according to the will of the dominant party is undue influence .

An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.

The first element of proving fraud is to show that the innocent party is not easily fooled.

Dennis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Dennis is most likely liable for

Fraudulent misrepresentation is a tort.

The reason that mistakes of value have legal significance is that value is invariable.

If a contractor's bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Oil Inc. through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of

Voluntary consent is not lacking if one or more of the parties is mistaken about an important fact concerning the subject matter of the contract.

Honi, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

The party on whom duress is exerted can choose to carry out the contract.

A unilateral mistake does not give the mistaken party any right to avoid the contract.

Undue influence can arise from a confidential relationship or a relationship based on trust.

Any party who does not receive what he or she considers a fair bargain can successfully argue mistake.

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would