Question 1

James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a contract agreeing to pay James $400 for his saw.Because of the threat,Kenneth signs the contract.

Accepted Answer

A)  This contract is voidable at Kenneth's option.
B)  James has committed physical duress against Kenneth.
C)  This is an example of economic duress.
D)  All of the above.E) C) and D)
F) A) and B)

Question 2

Hal holds a gun to Irving's head and tells him to sign the contract.Irving signs the contract,because he fears for his personal safety.The contract is void,because it was entered into under duress.

Accepted Answer

A) True 
 B)False

Question 3

A basic element of fraud is a false representation or a misrepresentation.

Accepted Answer

A) True 
 B)False

Question 4

Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks.Finally,they agreed on some contract terms.Kate offered to create a draft of the contract for Ben to read over.On the same day Ben was fired from his job.Afraid he would be unemployed,Ben signed Kate's draft without reading it.In this example Ben:

Accepted Answer

A)  can avoid the contract because of mistake by failure to read.
B)  can avoid the contract because he was the victim of economic duress.
C)  cannot avoid the contract because of economic duress or failure to read.
D)  may rescind the contract because of unilateral mistake.E) A) and C)
F) A) and B)

Question 5

The law would most likely impose a duty of disclosure in a transaction between:

Accepted Answer

A)  a salesperson and customer.
B)  business partners.
C)  a contractor and a homeowner seeking bids on repairing a roof.
D)  a seller of real property and a potential buyer who knows the property has greater value than the seller realizes.E) A) and B)
F) B) and C)

Question 6

A voluntary choice of perfectly legitimate alternatives may in some instances constitute economic duress.

Accepted Answer

A) True 
 B)False

Question 7

The remedies of damages and rescission are available for:

Accepted Answer

A)  material fraudulent misrepresentation.
B)  negligent misrepresentation.
C)  innocent misrepresentation
D)  All of the above.E) All of the above
F) C) and D)

Question 8

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County.Unknown to both parties,this land had recently been rezoned and only single-unit dwellings can be constructed.In this case:

Accepted Answer

A)  there is a mistake of law, which in some states is treated no differently than a mistake of fact. In such states, since this mistake relates to a basic assumption on which the parties made their contract and it has a material effect on their agreement, the contract is voidable.
B)  since everyone should know the law, Stewart is liable to Will for any losses he may incur.
C)  Stewart is obligated to buy land elsewhere and have the complex constructed on property zoned for apartments.
D)  Will is liable to Stewart since Will is a contractor.E) C) and D)
F) B) and D)

Question 9

A voidable contract results when the contract arises from:

Accepted Answer

A)  physical duress.
B)  undue influence.
C)  fraud in the execution.
D)  a mutual mistake in the meaning of contractual terms and neither party is to blame.E) A) and B)
F) A) and C)

Question 10

An arm's length transaction is one in which:

Accepted Answer

A)  the parties owe each other a special duty of confidentiality.
B)  the parties owe each other a fiduciary duty.
C)  the parties are acting in their own self-interest.
D)  None of the above.E) B) and D)
F) C) and D)

Question 11

Fraud in the inducement will render an agreement void.

Accepted Answer

A) True 
 B)False

Question 12

Albert found a stone in his yard and took it to Bob,a jeweler,for evaluation.Bob wasn't sure as to the nature of the stone,but told Albert he thought it was a topaz.Bob then offered to buy the stone for $25 and Albert agreed.Later Albert found out the stone was an uncut diamond worth about $700.The sales contract:

Accepted Answer

A)  is a valid contract that should be enforced by the law, because neither party knew the exact nature of the stone at the time of the sale.
B)  can be voided based upon fraud in the execution.
C)  can be voided based upon fraudulent misrepresentation.
D)  can be voided based upon mistake as to the identity of the subject matter.E) B) and D)
F) B) and C)

Question 13

Identify two situations in which silence or nondisclosure constitutes a misrepresentation.

Accepted Answer

a.Negligent misrepresentation is a false...

Question 14

A contract induced by threatening to bring a civil suit against an individual is prohibited:

Accepted Answer

A)  if the threat is an abuse of process.
B)  if the suit is to recover a debt, whether the debt is valid or in controversy.
C)  under no circumstances.
D)  Both (a)  and (b) .E) All of the above
F) A) and D)

Question 15

Which of the following can meet the scienter requirement to establish fraud in the inducement?

Accepted Answer

A)  Actual knowledge.
B)  Lack of belief in the statement's truthfulness.
C)  Reckless indifference as to a statement's truthfulness.
D)  All of the above meet the requirement.E) B) and C)
F) C) and D)

Question 16

Al owns a farm that he believes is worth $150,000.Betty knows that there is oil under the farm and offers Al $160,000 for it.Al accepts and sells the farm to Betty.Al later realizes that the land was worth more than $160,000.Al can have the contract avoided based upon fraud.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following,if any,are requisites for fraud in the inducement?

Accepted Answer

A)  False representation of a fact that is material.
B)  Representation is made with knowledge of its falsity and the intention to deceive.
C)  The representation is justifiably relied on.
D)  All of the above.
E)  (a)  and (b) , but not (c) .F) C) and E)
G) A) and E)

Question 18

Contracts induced by threats of __________ are voidable,regardless of whether the coerced party has committed an unlawful act.

Accepted Answer

A)  civil prosecution
B)  criminal prosecution
C)  tortious conduct
D)  a lawsuit to recover a debtE) A) and D)
F) None of the above

Question 19

Which of the following is correct with regard to duress?

Accepted Answer

A)  It always renders a contract void.
B)  Duress by improper threats or acts is the more common form of duress.
C)  The wrongful act must be either a crime or a tort in order to be considered wrongful.
D)  All of the above.E) B) and C)
F) A) and B)

Exam 11: Conduct Invalidating Assent

Fraud in the inducement will render an agreement void.

Correct Answer
verified

Identify two situations in which silence or nondisclosure constitutes a misrepresentation.

Correct Answer
verified
a.Negligent misrepresentation is a false...
View Answer

Hal holds a gun to Irving's head and tells him to sign the contract.Irving signs the contract,because he fears for his personal safety.The contract is void,because it was entered into under duress.

Correct Answer
verified

Which of the following is correct with regard to duress?

Correct Answer
verified

Which of the following,if any,are requisites for fraud in the inducement?

Correct Answer
verified

James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a contract agreeing to pay James $400 for his saw.Because of the threat,Kenneth signs the contract.

Correct Answer
verified

Correct Answer
verified

The law would most likely impose a duty of disclosure in a transaction between:

Correct Answer
verified

Correct Answer
verified

A voidable contract results when the contract arises from:

Correct Answer
verified

Contracts induced by threats of __________ are voidable,regardless of whether the coerced party has committed an unlawful act.

Correct Answer
verified

A basic element of fraud is a false representation or a misrepresentation.

Correct Answer
verified

A voluntary choice of perfectly legitimate alternatives may in some instances constitute economic duress.

Correct Answer
verified

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County.Unknown to both parties,this land had recently been rezoned and only single-unit dwellings can be constructed.In this case:

Correct Answer
verified

Al owns a farm that he believes is worth $150,000.Betty knows that there is oil under the farm and offers Al $160,000 for it.Al accepts and sells the farm to Betty.Al later realizes that the land was worth more than $160,000.Al can have the contract avoided based upon fraud.

Correct Answer
verified

The remedies of damages and rescission are available for:

Correct Answer
verified

An arm's length transaction is one in which:

Correct Answer
verified

Which of the following can meet the scienter requirement to establish fraud in the inducement?

Correct Answer
verified

A contract induced by threatening to bring a civil suit against an individual is prohibited:

Correct Answer
verified

Exam 11: Conduct Invalidating Assent

Fraud in the inducement will render an agreement void.

Correct AnswerverifiedShow Answer

Identify two situations in which silence or nondisclosure constitutes a misrepresentation.

Correct Answerverifieda.Negligent misrepresentation is a false...View AnswerShow Answer

Hal holds a gun to Irving's head and tells him to sign the contract.Irving signs the contract,because he fears for his personal safety.The contract is void,because it was entered into under duress.

Correct AnswerverifiedShow Answer

Which of the following is correct with regard to duress?

Correct AnswerverifiedShow Answer

Which of the following,if any,are requisites for fraud in the inducement?

Correct AnswerverifiedShow Answer

James threatens to hit Kenneth in the head with a baseball bat unless Kenneth signs a contract agreeing to pay James $400 for his saw.Because of the threat,Kenneth signs the contract.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The law would most likely impose a duty of disclosure in a transaction between:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A voidable contract results when the contract arises from:

Correct AnswerverifiedShow Answer

Contracts induced by threats of __________ are voidable,regardless of whether the coerced party has committed an unlawful act.

Correct AnswerverifiedShow Answer

A basic element of fraud is a false representation or a misrepresentation.

Correct AnswerverifiedShow Answer

A voluntary choice of perfectly legitimate alternatives may in some instances constitute economic duress.

Correct AnswerverifiedShow Answer

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County.Unknown to both parties,this land had recently been rezoned and only single-unit dwellings can be constructed.In this case:

Correct AnswerverifiedShow Answer

Al owns a farm that he believes is worth $150,000.Betty knows that there is oil under the farm and offers Al $160,000 for it.Al accepts and sells the farm to Betty.Al later realizes that the land was worth more than $160,000.Al can have the contract avoided based upon fraud.

Correct AnswerverifiedShow Answer

The remedies of damages and rescission are available for:

Correct AnswerverifiedShow Answer

An arm's length transaction is one in which:

Correct AnswerverifiedShow Answer

Which of the following can meet the scienter requirement to establish fraud in the inducement?

Correct AnswerverifiedShow Answer

A contract induced by threatening to bring a civil suit against an individual is prohibited:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a.Negligent misrepresentation is a false...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified