Question 1

In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be worth twice as much by next year." This statement is not likely to support rescission of the contract because it is

Accepted Answer

A)   a material fact.
B)   a misrepresentation.
C)   a mistake.
D)   an opinion.E) A) and B)
F) A) and C)

Question 2

An otherwise valid contract is enforceable even if the parties have not genuinely agreed to its terms.

Accepted Answer

A) True 
 B)False

Question 3

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this claim, Don learns that Eve does not have access to the algorithm and files a suit, alleging fraud. Don must show harm to

Accepted Answer

A)   recover damages.
B)   rescind the contract.
C)   undo Eve's influence.
D)   punish the defendant.E) B) and D)
F) A) and B)

Question 4

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

Accepted Answer

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

Question 5

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded

Accepted Answer

A)   if Quality Built knew or should have known of the mistake.
B)   if Orin's supervisor did not know of the mistake.
C)   if Plumbing knew or should have known of the mistake.
D)   under no circumstances.E) B) and D)
F) B) and C)

Question 6

A misrepresentation must be expressly made through the words or writings of another.

Accepted Answer

A) True 
 B)False

Question 7

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

Accepted Answer

A) True 
 B)False

Question 8

A misunderstanding concerning a basic assumption on which a contract is made will support the rescission of the deal if the mistake is

Accepted Answer

A)   bilateral.
B)   unilateral.
C)   lateral.
D)   any of the choices.E) All of the above
F) A) and C)

Question 9

Exaggeration is an element of fraud.

Accepted Answer

A) True 
 B)False

Question 10

An innocent party who does not suffer harm as a result of a misrepresentation can nevertheless collect damages.

Accepted Answer

A) True 
 B)False

Question 11

Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

Accepted Answer

A) True 
 B)False

Question 12

The party on whom duress is exerted can choose to avoid the entire transaction.

Accepted Answer

A) True 
 B)False

Question 13

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,000. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $100, Steak's manager immediately accepts. The seller

Accepted Answer

A)   is bound to the deal at the offered price.
B)   can rescind the deal.
C)   is bound to the deal but can charge the intended price.
D)   can rescind the deal and recover damages for the mistake.E) B) and C)
F) None of the above

Exam 14: Voluntary Consent

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,000. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $100, Steak's manager immediately accepts. The seller

Correct Answer
verified

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded

Correct Answer
verified

The party on whom duress is exerted can choose to avoid the entire transaction.

Correct Answer
verified

In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be worth twice as much by next year." This statement is not likely to support rescission of the contract because it is

Correct Answer
verified

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

Correct Answer
verified

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

Correct Answer
verified

Exaggeration is an element of fraud.

Correct Answer
verified

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this claim, Don learns that Eve does not have access to the algorithm and files a suit, alleging fraud. Don must show harm to

Correct Answer
verified

A misrepresentation must be expressly made through the words or writings of another.

Correct Answer
verified

Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

Correct Answer
verified

An innocent party who does not suffer harm as a result of a misrepresentation can nevertheless collect damages.

Correct Answer
verified

An otherwise valid contract is enforceable even if the parties have not genuinely agreed to its terms.

Correct Answer
verified

A misunderstanding concerning a basic assumption on which a contract is made will support the rescission of the deal if the mistake is

Correct Answer
verified

Exam 14: Voluntary Consent

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,000. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $100, Steak's manager immediately accepts. The seller

Correct AnswerverifiedShow Answer

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded

Correct AnswerverifiedShow Answer

The party on whom duress is exerted can choose to avoid the entire transaction.

Correct AnswerverifiedShow Answer

In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be worth twice as much by next year." This statement is not likely to support rescission of the contract because it is

Correct AnswerverifiedShow Answer

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

Correct AnswerverifiedShow Answer

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

Correct AnswerverifiedShow Answer

Exaggeration is an element of fraud.

Correct AnswerverifiedShow Answer

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this claim, Don learns that Eve does not have access to the algorithm and files a suit, alleging fraud. Don must show harm to

Correct AnswerverifiedShow Answer

A misrepresentation must be expressly made through the words or writings of another.

Correct AnswerverifiedShow Answer

Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

Correct AnswerverifiedShow Answer

An innocent party who does not suffer harm as a result of a misrepresentation can nevertheless collect damages.

Correct AnswerverifiedShow Answer

An otherwise valid contract is enforceable even if the parties have not genuinely agreed to its terms.

Correct AnswerverifiedShow Answer

A misunderstanding concerning a basic assumption on which a contract is made will support the rescission of the deal if the mistake is

Correct AnswerverifiedShow Answer

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