Question 1

A unilateral mistake occurs if both parties know the object of the contract but are mistaken as to its value.

Accepted Answer

A) True 
 B)False

Question 2

Joe buys a trailer from a used-car dealership.On enquiry, the dealer tells him that the trailer is in great condition.However, three days later, the trailer breaks down.Investigation by Joe reveals that the trailer had seven previous owners and that the engine has been replaced thrice.An automobile expert tells Joe that the trailer is dangerous.Which of the following frauds would the dealer be liable for?

Accepted Answer

A)  fraud in the factum
B)  fraud in the inducement
C)  silence as misrepresentation
D)  misrepresentation of law

Question 3

Intentional misrepresentation is considered fraud.

Accepted Answer

A) True 
 B)False

Question 4

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 regard?

Accepted Answer

A)  The store can rescind the contract immediately and refund $100 to John.
B)  The store can recover from John the difference between the value of the watch and the amount paid by John.
C)  The store can declare the contract void and pay John no money.
D)  The store cannot rescind or void the contract.

Question 5

If there has been a mutual mistake, the contract cannot be rescinded.

Accepted Answer

A) True 
 B)False

Question 6

Heather chooses to buy a scarf at Macy's and reads the price on the tag as $50.She uses her credit card to pay for the scarf, but post-purchase, she notices that the price tag actually says $500.This is an instance of a(n) ________.

Accepted Answer

A)  bilateral mistake
B)  mutual mistake of value
C)  innocent misrepresentation
D)  unilateral mistake

Question 7

________ occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Accepted Answer

A)  Fraud in the inducement
B)  Fraud in the factum
C)  Fraud by concealment
D)  Fraud by suppression B

Question 8

Which of the following is true of undue influence in entering contracts?

Accepted Answer

A)  Undue influence need not require the overcoming of the innocent party's free will.
B)  Undue influence is not grounds for prosecution, as the innocent party has complete freedom to evaluate the terms of the contract.
C)  A contract that is entered into because of undue influence is not voidable.
D)  A fiduciary or confidential relationship must have existed between the parties for undue influence to be proven.

Question 9

Which of the following is true of misrepresentation?

Accepted Answer

A)  Innocent misrepresentation is grounds for the aggrieved party to sue for damages.
B)  Misrepresentation of law is not actionable as fraud.
C)  Innocent misrepresentation cannot be treated as a mutual mistake.
D)  Misrepresentation of law can never be grounds for rescission of the contract.

Question 10

Assent of a party to a contract may be manifested in any manner sufficient to show agreement, including conduct.

Accepted Answer

A) True 
 B)False

Question 11

Intentional misrepresentation is commonly referred to as ________.

Accepted Answer

A)  erroneous misrepresentation
B)  fraud
C)  duress
D)  undue influence B

Question 12

________ is an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation.

Accepted Answer

A)  Fraudulent misrepresentation
B)  Unilateral mistake
C)  Bilateral mistake
D)  Erroneous misrepresentation

Question 13

Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

The measure of damages, recovered from a misrepresentation, is ________.

Accepted Answer

A)  the actual value of the property
B)  the represented value of the property
C)  the difference between the value of the property as represented and the actual value of the property
D)  twice the actual value of the property which includes punitive damages

Question 16

________ is an action to undo a contract.

Accepted Answer

A)  Rescission
B)  Recession
C)  Restitution
D)  Inception

Question 17

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

Accepted Answer

A)  mutual mistake of value
B)  misrepresentation of a material fact
C)  silence as misrepresentation
D)  innocent misrepresentation

Question 18

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Accepted Answer

A) True 
 B)False

Question 19

An action to undo a contract is called restitution.

Accepted Answer

A) True 
 B)False  False

Question 20

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

Accepted Answer

A)  It can occur only by the words of the wrongdoer.
B)  A misrepresentation is actionable as fraud only if it is the sole factor in inducing the innocent party to enter into the contract.
C)  It is actionable as fraud if the misrepresentation is of a past or existing material fact.
D)  Predictions about the future are considered basis for fraud.

Exam 13: Genuineness of Assent and Undue Influence

A unilateral mistake occurs if both parties know the object of the contract but are mistaken as to its value.

Correct Answer
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Correct Answer
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Intentional misrepresentation is considered fraud.

Correct Answer
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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 regard?

Correct Answer
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If there has been a mutual mistake, the contract cannot be rescinded.

Correct Answer
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Heather chooses to buy a scarf at Macy's and reads the price on the tag as $50.She uses her credit card to pay for the scarf, but post-purchase, she notices that the price tag actually says $500.This is an instance of a(n) ________.

Correct Answer
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________ occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct Answer
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B

Which of the following is true of undue influence in entering contracts?

Correct Answer
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Which of the following is true of misrepresentation?

Correct Answer
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Assent of a party to a contract may be manifested in any manner sufficient to show agreement, including conduct.

Correct Answer
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Intentional misrepresentation is commonly referred to as ________.

Correct Answer
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B

________ is an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation.

Correct Answer
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Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct Answer
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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.

Correct Answer
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The measure of damages, recovered from a misrepresentation, is ________.

Correct Answer
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________ is an action to undo a contract.

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

Correct Answer
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Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Correct Answer
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An action to undo a contract is called restitution.

Correct Answer
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False

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

Correct Answer
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Exam 13: Genuineness of Assent and Undue Influence

A unilateral mistake occurs if both parties know the object of the contract but are mistaken as to its value.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Intentional misrepresentation is considered fraud.

Correct AnswerverifiedShow Answer

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 regard?

Correct AnswerverifiedShow Answer

If there has been a mutual mistake, the contract cannot be rescinded.

Correct AnswerverifiedShow Answer

Heather chooses to buy a scarf at Macy's and reads the price on the tag as $50.She uses her credit card to pay for the scarf, but post-purchase, she notices that the price tag actually says $500.This is an instance of a(n) ________.

Correct AnswerverifiedShow Answer

________ occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct AnswerverifiedB

Which of the following is true of undue influence in entering contracts?

Correct AnswerverifiedShow Answer

Which of the following is true of misrepresentation?

Correct AnswerverifiedShow Answer

Assent of a party to a contract may be manifested in any manner sufficient to show agreement, including conduct.

Correct AnswerverifiedShow Answer

Intentional misrepresentation is commonly referred to as ________.

Correct AnswerverifiedB

________ is an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation.

Correct AnswerverifiedShow Answer

Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The measure of damages, recovered from a misrepresentation, is ________.

Correct AnswerverifiedShow Answer

________ is an action to undo a contract.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Correct AnswerverifiedShow Answer

An action to undo a contract is called restitution.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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B

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B

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False

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