Question 1

To recover for fraud,a plaintiff must be twenty-one or more years of age.

Accepted Answer

A) True 
 B)False

Question 2

Misrepresentation of a material fact can occur by words or action.

Accepted Answer

A) True 
 B)False

Question 3

County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from James to Kate,the furnished information is mistaken.
-Refer to Fact Pattern 14-3. If James and Kate are both ignorant of the mistake,it is

Accepted Answer

A) a bilateral mistake. 
B) a fraudulent misrepresentation. 
C) a unilateral mistake. 
D) unconscionable.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A price quotation with a mathematical mistake in the adding of a number of figures will never render a contract unenforceable.

Accepted Answer

A) True 
 B)False

Question 6

Lewis,an employee of Silos,Inc.,makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently,Silos's bid is significantly low.
-Refer to Fact Pattern 14-2. Any contract with AgriCo-op that includes the mistake may be rescinded

Accepted Answer

A) if the error was made inadvertently and without gross negligence. 
B) if the error was made intentionally or negligently. 
C) if the error was made intelligently but distractedly. 
D) under no circumstances.

Question 7

The element of justifiable reliance requires the misrepresentation to be the sole factor in inducing the deceived party to enter into the contract.

Accepted Answer

A) True 
 B)False

Question 8

Nora enters into a contract with Oceanic Transport,Inc.,to insure and ship a painting from Paris to New York City for a certain price. But Oceanic 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) allow the parties to rescind the contract. 
B) award damages to Nora for the mistake. 
C) award damages to Oceanic for the mistake. 
D) enforce the contract as is.

Question 9

Kyle,an accountant,convinces his client Lucille to sign a contract to invest her savings in 2Gether,a nonexistent social-networking Web site. There is clear and convincing evidence that Lucille did not act out of her free will. This is

Accepted Answer

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

Question 10

A statement of opinion is generally subject to a claim of fraud.

Accepted Answer

A) True 
 B)False

Question 11

Even when a naïve purchaser relies on an opinion from an expert,the innocent party is not entitled to rescission or reformation of a contract.

Accepted Answer

A) True 
 B)False

Question 12

Lewis,an employee of Silos,Inc.,makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently,Silos's bid is significantly low.
-Refer to Fact Pattern 14-2. Any contract with AgriCo-op that includes the mistake may be rescinded

Accepted Answer

A) if the mistake involves a material fact. 
B) if the mistake involves any fact. 
C) if the mistake is one of value or quality. 
D) under no circumstances.

Question 13

Duress is a defense to the enforcement of a contract,but not a ground for rescission of a contract.

Accepted Answer

A) True 
 B)False

Question 14

A party to a contract can choose to carry it out even if he or she did not genuinely agree to the terms.

Accepted Answer

A) True 
 B)False

Question 15

Camille,a tennis pro,convinces Dante,who has no athletic ability,that he has considerable skill and induces him to pay Camille $1,000 for tennis lessons. When Danterealizes the truth,he files a suit against Camille. Danteis most likely to recover on the basis of

Accepted Answer

A) opinion. 
B) fraud. 
C) unconscionability. 
D) none of the choices.

Question 16

A contract entered into under undue influence is voidable.

Accepted Answer

A) True 
 B)False

Question 17

Reformation occurs when a court alters the terms of a contract to reflect the true intent of the parties.

Accepted Answer

A) True 
 B)False

Question 18

A mistake of fact cannot be unilateral.

Accepted Answer

A) True 
 B)False

Question 19

At an auction for the first time,Darcy bids on a one-hundred-year-old Edison-brand phonograph,believing that it is worth more than the price asked. When the item proves to be less valuable,Darcy is

Accepted Answer

A) liable on the bid. 
B) not liable on the bid because Darcy overestimated the value of the item. 
C) not liable on the bid because the auctioneer overstated the value of the item. 
D) not liable on the bid because this was Darcy's first auction

Question 20

A threat to exercise a legal right,such as the right to sue someone,ordinarily constitutes duress.

Accepted Answer

A) True 
 B)False

Exam 14: Voluntary Consent

To recover for fraud,a plaintiff must be twenty-one or more years of age.

Misrepresentation of a material fact can occur by words or action.

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

A price quotation with a mathematical mistake in the adding of a number of figures will never render a contract unenforceable.

The element of justifiable reliance requires the misrepresentation to be the sole factor in inducing the deceived party to enter into the contract.

Nora enters into a contract with Oceanic Transport,Inc.,to insure and ship a painting from Paris to New York City for a certain price. But Oceanic 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

Kyle,an accountant,convinces his client Lucille to sign a contract to invest her savings in 2Gether,a nonexistent social-networking Web site. There is clear and convincing evidence that Lucille did not act out of her free will. This is

A statement of opinion is generally subject to a claim of fraud.

Even when a naïve purchaser relies on an opinion from an expert,the innocent party is not entitled to rescission or reformation of a contract.

Duress is a defense to the enforcement of a contract,but not a ground for rescission of a contract.

A party to a contract can choose to carry it out even if he or she did not genuinely agree to the terms.

Camille,a tennis pro,convinces Dante,who has no athletic ability,that he has considerable skill and induces him to pay Camille $1,000 for tennis lessons. When Danterealizes the truth,he files a suit against Camille. Danteis most likely to recover on the basis of

A contract entered into under undue influence is voidable.

Reformation occurs when a court alters the terms of a contract to reflect the true intent of the parties.

A mistake of fact cannot be unilateral.

At an auction for the first time,Darcy bids on a one-hundred-year-old Edison-brand phonograph,believing that it is worth more than the price asked. When the item proves to be less valuable,Darcy is

A threat to exercise a legal right,such as the right to sue someone,ordinarily constitutes duress.