| A | B |
|---|
| Parties that cancel their contract obligations by recission can get back what they've __________________________. | already put into the contract |
| A contract that lacks the genuine assent of the parties to it is ______________________. | typically voidable |
| Committing an ___________ to obtain a signature on a written contract is duress. | act of violence |
| When the dominating party to a confidential relationship ________________ on the dominated party to enter into a contract that benefits the former, undue influence occurs. | exerts irresistible pressure |
| You will be ___________________ you have not read, even if you sign it. | bound to a contract |
| A mutual mistake about the ___________________ will not render the contract void | law applicable to the contract |
| Regardless of whether a misrepresentation is _____________________, the resulting contract is voidable by the party to whom the misrepresentation is made. | innocent or fraudulent |
| Active __________________ leaves the resultant contract voidable. | concealment of a material fact |
| Being able to show fraud allows a victim to __________________ in addition to being able to utilize other remedies. | recover punitive damages |
| To prove fraud, an alleged victim must show ___________________ to prove misrepresentation in addition to showing intent and injury. | all the elements necessary |
| A contract can only be ratified by _________________ made orally or in writing. | an explicit statement |
| Which of the following is not a legal rationale for showing the lack of genuine assent to a contract? | ratification |
| Which of the following could not be used to show legal duress? | threats to do business elsewhere |
| In economic duress cases, the courts look at | both the threat and the alternatives available to the threatened party |
| When a contract arises because of undue influence, the contract is voidable by the | dominated party |
| A mistake resulting from a failure to read a contract before signing it will render the contract | valid |
| A mutual mistake of fact as to the identity of the subject matter of the contract will render the contract | void |
| Fraud renders the contract ____________________ by the victim. | voidable |
| Disclosure is required in contractual negotiations when a statement | omits important information about a material fact and is made false by subsequent events |
| To prove misrepresentation the reliance placed on the untrue statement must be | reasonable |
| If legal duress is proven the contract | is rendered voidable |
| When both parties have an incorrect belief about material facts relating to a contract, what may result? | a mutual and a bilateral mistake |
| Which of the following need not be shown to prove misrepresentation? | resultant injury |
| In the case of fraud, what remedies are available to the injured party? | rescission, compensatory damages, and punitive damages |
| Ima has a neighbor named Judy, who works for Kevin. Ima threatens Judy that she will tell Kevin that Judy lied about her job experience on her resume unless Judy buys one of the $1,000 vacuum cleaners Ima sells. Ima's threat is an example of | duress. |
| Which of the following makes a contract voidable? | innocent misrepresentation |
| Which of the following would be a statement of fact that, if untrue, would base a misrepresentation lawsuit? | "The tires were replaced after 30,000 miles." |
| Michelle was a victim of fraud. The $40,000 portion of her court award that Michelle received in order to punish the party who committed fraud against her is known as | punitive damages |
| Because of her allergies, it is important for Isabel to have her carpet steam-cleaned regularly in her leased apartment. Prior to signing an apartment lease, Isabel is shown a contract that verifies that the apartment manager at one complex pays for carpet to be steam-cleaned twice a year. Based upon this information, Isabel signs a two-year lease with that complex. What has occurred with regard to this contract term? | reasonable reliance |
| Zambo bought a corner lot in a residential area in hopes of putting in a drive-thru restaurant. She did not mention her plans in the bargaining sessions for fear that the seller would raise the asking price. Afterwards, she discovered that the legal zoning of the lot prohibits any retail establishment. Her mistake is best described as a(n) | unilateral mistake of law |
| Bob and Susan are selling their house, but the foundation is unstable. Instead of fixing the foundation before they put the house on the market, Bob and Susan merely paint over the crack that runs through the ceiling in the living room of the home. Bob and Susan are guilty of a type of misrepresentation called ____________________. | active concealment |
| Esteban has negotiated with a wholesale lumber dealer for a specific price per bundle of lumber needed in his apartment building construction plans. Weeks after the negotiations, the manager at the wholesale lumber company learns of the number of apartment buildings Esteban will be building and wants to capitalize on Esteban's success. So, he threatens to withhold Esteban's lumber supply unless he agrees to pay $20 more per bundle. This threat is an example of ____________________. | economic duress |
| On her first day of employment with an advertising firm, DeShawn received an employment contract which she carelessly read. Two weeks later DeShawn's employer notifies her that she will be relocated according to the terms of her employment contract. DeShawn believes the contract is voidable because she did not read the relocation clause in the contract. A court, noting DeShawn's ________________ mistake, would hold that the contract was valid. | unilateral |
| Tania agrees to purchase one of Kim's formal dresses for $45 to wear to her company's Christmas party. The next day she is fired and will, therefore, not need the dress. She agrees to return the dress, and Kim returns the $45. Their actions are an example of the contract remedy of ________________. | rescission |
| After Patricia's husband died, her neighbor persuaded her to sell her husband's motorcycle for 70 percent of its real value. For more than a year she accepted her neighbor's monthly payments. By her acceptance of these payments she has ____________________ their agreement, which, as a consequence, cannot be rescinded. | ratified |
| If fraud is proven, an additional remedy beyond rescission becomes available to the injured party. That remedy is ____________________. | damages |
| Two years ago, Hope purchased a car from her friend. At the time of the purchase, the odometer reading was 30,000 miles. Hope drove the car for a year and put an additional 15,000 on the vehicle, and then sold the car to Miguel. Miguel later learned that the car had 60,000 on it. Because Hope did not know the original owner had altered the odometer reading, her original statement regarding the odometer reading is an example of ____________________. | innocent misrepresentation |
| While working for Joe as a legal secretary, Doris discovers that Joe has taken a piece of land in lieu of a client's payment for legal fees. Joe, however, notifies the other partners in his law firm that this client's legal fees are uncollectible. The firm then absorbs the loss resulting from the uncollectible fees. Joe later sells the land for $80,000 and secretly pockets the money. Doris then threatens Joe into giving her a pay raise of $25,000 to "keep her mouth shut." If Joe does so, Doris' new employment contract would be voidable due to legal ___________________. | duress |
| A(n) ____________________ is one in which an inordinate amount of trust and confidence is placed by a dependent party in the dominant party. | confidential relationship |
| Johnston owns two cars. One is a 2000 Thunderchicken and the other a 2004 model Thunderchicken. Thompson, not knowing that Johnston has two Thunderchickens, makes an offer to buy "Johnston's Thunderchicken." Johnston accepts thinking from the size of the offer that Thompson is referring to his 2000 Thunderchicken. The resulting contract is void due to the parties' ____________________ mistake of fact. | mutual or bilateral |
