Question

To rescind a contract based on fraud you must quickly and clearly do so after learning of the fraud, or the k may be ratified.

Group of answer choices

True

False

A party's failure to disclose facts can sometimes be a misrepresentation.

Group of answer choices

True

False

For duress, a threat must be considered improper.

Group of answer choices

True

False

Concealment of a fact through active conduct intended to prevent the other party from discovering the fact is still never an assertion of fact.

Group of answer choices

True

False

Under modern law, good faith does not require a party to correct another person's mistake about a basic assumption that the contract was based on.

Group of answer choices

True

False

A statement of opinion can never be the basis for a misrepresentation claim because reliance is not justified in such cases.

Group of answer choices

True

False

In order for a person to rescind a contract because of misrepresentation, the misrepresentation must have been fraudulent and intentional.

Group of answer choices

True

False

A contract caused by improper threats that leave a party no reasonable alternative but to enter into the contract is voidable (because of duress).

Group of answer choices

True

False

. If a contract is voidable, the person whose consent was not real may rescind.

Group of answer choices

True

False

A fiduciary relationship may create a duty to disclose.

Group of answer choices

True

False

When Buster sold his store to Brandy, Buster lied and said that the store was very profitable. Brandy knew that Buster was lying but bought the business anyway. Under these circumstances, Brandy will not have a fraud claim because:

Group of answer choices

the false statement was not actually relied upon.

the false statement was not material.

the false statement was not knowingly made.

the false statement was not a statement of a past or existing fact.

The court is less likely to grant relief in which of the following:

Group of answer choices

a unilateral mistake where the non-mistaken party is aware of the other party' s mistake and says nothing.

a mutual mistake about a fact material to a contract.

a mistake in the drafting of a written contract.

a unilateral mistake where the non-mistaken party did not know or have any reason to know of the mistake.

Linda is a nurse who became very friendly with Glenn, a sick and elderly patient. Glenn owned real estate worth millions, which he had planned to leave to his children. Linda persuaded Glenn to sell her the property instead of $ 10,000 by often telling him "if your children cared for you at all they would visit more often." Which of the following theories would most likely let Glenn to rescind the contract?

Group of answer choices

undue influence.

duress.

fraud.

misrepresentation.

Answer 1

1. True

In contract law, rescission is an equitable remedy which allows a contractual party to cancel the contract. Parties may rescind if they are the victims of a vitiating factor, such as misrepresentation, mistake, duress, or undue influence.Rescission is the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract

2.True

Misrepresentation may occur where a fiduciary fails to disclose material facts of which he or she has knowledge. A duty also exists to correct any statements of fact which later become known to be untrue. In this case, the failure to correct a previous false statement would be a misrepresentation.Material fact is a fact that is important, significant or essential to a reasonable person in deciding whether to engage or not to engage in a particular transaction.

3. True

In this case perpetrator threatens the victim, who feels there is no reasonable alternative but to assent to the contract. It renders the contract voidable. This rule contains a number of elements.First, the threat must be improper. Second, there must be no reasonable alternative. Third, the test for inducement is subjective.

4. False

The concealment of a fact through some active conduct intended to prevent the other party from discovering the fact is considered to be the equivalent of an assertion and like a false statement of fact, concealment can be the basis for a claim of misrepresentation or fraud.