Question 1

In proving fraud, which of the following is true in case of reliance by the victim?

Accepted Answer

A)   The reliance need not be solely on the false assertion.
B)   The defendant can win a case by demonstrating that the plaintiff would have assented to the contract even without misrepresentation.
C)   If the victim fails to read documents which give him the true facts, he can complain that he relied on contrary statements.
D)   The rule of reliance applies to statements about the occurrence of events in the past, present, and future.
E)   If the statement is one that concerns matters peculiarly within the person's purview, he would be held to have justifiably relied on the other party's false assertion.

Question 2

a(n. _____ is one that would be likely to induce a reasonable person to manifest his assent.

Accepted Answer

A)   innocent misrepresentation
B)   rescission
C)   duress
D)   misstatement of fact
E)   material misrepresentation

Question 3

With reference to assertions of intention, which of the following is NOT true?

Accepted Answer

A)   Usually, assertions of intention are not considered facts.
B)   The right to misstate intentions is useful chiefly in the acquisition of business.
C)   To be a misrepresentation that will permit rescission, an assertion of intention must be false at the time made.
D)   To render a contract voidable, the false assertion of intention must be harmful in some way to other interests of the recipient.
E)   The law allows considerable leeway in the honesty of assertions of intention. B

Question 4

Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?

Accepted Answer

A)   The contract did not develop Vokes' dancing abilities.
B)   The contract did not develop Vokes' dance aptitude.
C)   The contract led to Vokes having difficulty in hearing the musical beat.
D)   There was an assertion of intentions.
E)   The contract was a misrepresentation of assertion of opinion.

Question 5

John, age 16, bought a hot car from Seller; John smashed up the car. The majority rule is that he may disaffirm, but his recovery will be limited to the depreciated value of the car.

Accepted Answer

A) True 
 B)False

Question 6

In a contract with an infant, _____.

Accepted Answer

A)   eighteen-year-olds may assent to binding contracts
B)   if the contract has been executed, the infant would be relieved from facing more arduous consequences
C)   if the contract is executory, the infant will be liable under a quasi-contract
D)   the infant will lose his power to accept the contract if the rights of third parties intervene
E)   if a tort suit is an indirect method of enforcing a contract, infants will not be held liable for their torts

Question 7

A contract made by a person under guardianship is voidable.

Accepted Answer

A) True 
 B)False  False

Question 8

On May 1st Dubious sold Rodney Thermal (Hot Rod), who was two weeks shy of his 18th birthday, a 2003 Bulgemobile Turboturgid Mark VI automobile for $9,000. Hot Rod made a down payment, and agreed to pay $250 per month on the balance. When Hot Rod applied for insurance with Goodhands Insurance Co. he signed a "Notice of Rejection," declining to purchase uninsured motorist coverage (which was not required in the jurisdiction). One week later an uninsured motorist crashed into the car; Hot Rod sought to disaffirm his rejection of the insurance on the basis of his infancy. Four weeks later-having made one payment-he sought to disaffirm his purchase of the car entirely.
a. May Hot Rod disaffirm his rejection of the insurance as he wants to?
b. May he disaffirm the contract entirely?
a) No, Hot Rod cannot disaffirm his rejection of the contract. An infant may avoid his or her contract, but the rule is not that the infant may avoid or disaffirm the rejection of a contract.
b) No, Hot Rod cannot disaffirm the contract entirely. After reaching majority, an infant has a reasonable time to disaffirm contracts made during infancy, but if the infant performs a part of the contract after reaching majority, the contract is said to be ratified by the infant and it cannot be avoided.

Accepted Answer

a) No, Hot Rod cannot disaffirm his reje...

Question 9

Fraud in the inducement makes the agreement void.

Accepted Answer

A) True 
 B)False

Question 10

A unilateral mistake of fact is usually grounds for avoiding a contract.

Accepted Answer

A) True 
 B)False

Question 11

An infant will lose the power to avoid a contract if the rights of third parties intervene.

Accepted Answer

A) True 
 B)False

Question 12

In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?

Accepted Answer

A)   There was a mistake on part of Young who did not have the authority to order the equipment.
B)   The contract was made intentionally misrepresenting the facts.
C)   The mistake was mutual, relating to a failure of communication.
D)   There was a misstatement of fact by Konic.
E)   There was a fraudulent misrepresentation.

Question 13

Identify the correct statement in proving fraudulent misrepresentation.

Accepted Answer

A)   Concealment is a more passive type of nondisclosure.
B)   Nondisclosure of a fact operates as a misrepresentation under all circumstances.
C)   The act of concealment should be direct.
D)   Concealment may consist of diverting the other party from gaining the necessary knowledge.
E)   Sales puffery is considered a fact.

Question 14

A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

Accepted Answer

A) True 
 B)False

Question 15

A person who was intoxicated at the time he made a contract cannot subsequently ratify it.

Accepted Answer

A) True 
 B)False  False

Question 16

Which of the following is true with regard to misrepresentation?

Accepted Answer

A)   Fraud in the execution is defined as some misrepresentation about the subject of the contract.
B)   Fraud in the inducement is defined as a misrepresentation as to the character of the contract.
C)   If a misrepresentation is intentional, it is non-fraudulent.
D)   If a misrepresentation is unintentional, it is fraudulent.
E)   A non-fraudulent misrepresentation can be innocent.

Question 17

What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

Accepted Answer

An agreement is enforceable if the parti...

Question 18

Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

Accepted Answer

A) True 
 B)False

Question 19

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true about undue influence?

Accepted Answer

A)   It is a harsher form of duress.
B)   The unfairness does not lie in any misrepresentation.
C)   Usually the fact pattern involves the victim receiving advice from most people except the persuader.
D)   A contract made under undue influence stands void.
E)   The perpetrator threatens the victim to assent to the contract.

Exam 10: Real Assent

In proving fraud, which of the following is true in case of reliance by the victim?

Correct Answer
verified

a(n. _____ is one that would be likely to induce a reasonable person to manifest his assent.

Correct Answer
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With reference to assertions of intention, which of the following is NOT true?

Correct Answer
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B

Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?

Correct Answer
verified

John, age 16, bought a hot car from Seller; John smashed up the car. The majority rule is that he may disaffirm, but his recovery will be limited to the depreciated value of the car.

Correct Answer
verified

In a contract with an infant, _____.

Correct Answer
verified

A contract made by a person under guardianship is voidable.

Correct Answer
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False

Correct Answer
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a) No, Hot Rod cannot disaffirm his reje...
View Answer

Fraud in the inducement makes the agreement void.

Correct Answer
verified

A unilateral mistake of fact is usually grounds for avoiding a contract.

Correct Answer
verified

An infant will lose the power to avoid a contract if the rights of third parties intervene.

Correct Answer
verified

In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?

Correct Answer
verified

Identify the correct statement in proving fraudulent misrepresentation.

Correct Answer
verified

A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

Correct Answer
verified

A person who was intoxicated at the time he made a contract cannot subsequently ratify it.

Correct Answer
verified
False

Which of the following is true with regard to misrepresentation?

Correct Answer
verified

What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

Correct Answer
verified
An agreement is enforceable if the parti...
View Answer

Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

Correct Answer
verified

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

Correct Answer
verified

Which of the following is true about undue influence?

Correct Answer
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Exam 10: Real Assent

In proving fraud, which of the following is true in case of reliance by the victim?

Correct AnswerverifiedShow Answer

a(n. _____ is one that would be likely to induce a reasonable person to manifest his assent.

Correct AnswerverifiedShow Answer

With reference to assertions of intention, which of the following is NOT true?

Correct AnswerverifiedB

Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?

Correct AnswerverifiedShow Answer

John, age 16, bought a hot car from Seller; John smashed up the car. The majority rule is that he may disaffirm, but his recovery will be limited to the depreciated value of the car.

Correct AnswerverifiedShow Answer

In a contract with an infant, _____.

Correct AnswerverifiedShow Answer

A contract made by a person under guardianship is voidable.

Correct AnswerverifiedFalse

Correct Answerverifieda) No, Hot Rod cannot disaffirm his reje...View AnswerShow Answer

Fraud in the inducement makes the agreement void.

Correct AnswerverifiedShow Answer

A unilateral mistake of fact is usually grounds for avoiding a contract.

Correct AnswerverifiedShow Answer

An infant will lose the power to avoid a contract if the rights of third parties intervene.

Correct AnswerverifiedShow Answer

In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?

Correct AnswerverifiedShow Answer

Identify the correct statement in proving fraudulent misrepresentation.

Correct AnswerverifiedShow Answer

A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

Correct AnswerverifiedShow Answer

A person who was intoxicated at the time he made a contract cannot subsequently ratify it.

Correct AnswerverifiedFalse

Which of the following is true with regard to misrepresentation?

Correct AnswerverifiedShow Answer

What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

Correct AnswerverifiedAn agreement is enforceable if the parti...View AnswerShow Answer

Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

Correct AnswerverifiedShow Answer

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

Correct AnswerverifiedShow Answer

Which of the following is true about undue influence?

Correct AnswerverifiedShow Answer

Correct Answer
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B

Correct Answer
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Correct Answer
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False

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a) No, Hot Rod cannot disaffirm his reje...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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An agreement is enforceable if the parti...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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