Question 1

Fact Pattern 13-1 Data Storage Inc. offers to provide cloud-computing services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer.
Refer to Fact Pattern 13-1. Enterprise's best argument in favor of enforcement of the contract is that

Accepted Answer

A)   a bilateral mistake does not afford relief from a contract.
B)   a mistake of value does not afford relief from a contract.
C)   a unilateral mistake does not afford relief from a contract.
D)   the price was below the prices of comparable services.E) B) and C)
F) A) and D)

Question 2

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Accepted Answer

A)   Dick intentionally deceived Ernie.
B)   Dick misrepresented material facts.
C)   Ernie is under twenty-one.
D)   Ernie justifiably relied on Dick's misrepresentations.E) B) and C)
F) A) and B)

Question 3

Gary owns two all-terrain vehicles (ATVs) , worth $1,000 and $500, respec-tively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

Accepted Answer

A)   Gary is entitled to $750 for the $500 ATV.
B)   Helen is entitled to the $1,000 ATV for $750.
C)   Helen must buy both ATVs for $1,500.
D)   the contract is not enforceable.E) A) and B)
F) None of the above

Question 4

A material fact is a fact that is important and central to the subject matter of a contract.

Accepted Answer

A) True 
 B)False

Question 5

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

Accepted Answer

A)   still liable on the bid.
B)   not liable on the bid because he underestimated the cost of repairs.
C)   not liable on the bid because the auctioneer misrepresented the value.
D)   not liable on the bid because an auction is not subject to contract law.E) A) and C)
F) B) and C)

Question 6

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of

Accepted Answer

A)   duress.
B)   fraudulent misrepresentation.
C)   mistake.
D)   opinion.E) B) and D)
F) C) and D)

Question 7

Fact Pattern 13-4 In selling a warehouse, Riley tells Sam that he knows that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building.
Refer to Fact Pattern 13-4. Riley's knowledge that facts were falsely represented to Sam is known as

Accepted Answer

A)   unilateral mistake.
B)   misrepresentation by silence .
C)   scienter.
D)   none of these.E) A) and C)
F) A) and B)

Question 8

When both parties to a contract are mistaken about the same material fact, a unilateral mistake has occurred.

Accepted Answer

A) True 
 B)False

Question 9

S cienter clearly exists if a party knows a fact is not as stated.

Accepted Answer

A) True 
 B)False

Question 10

Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

Accepted Answer

A) True 
 B)False

Question 11

Dix agrees to sell Eli, for $1,500, a remote parcel of land. Soon after, the land becomes much more valuable due to the construction of a new highway nearby. A court would

Accepted Answer

A)   not rescind the contract .
B)   rescind the contract on the basis of fraud.
C)   rescind the contract on the basis of mistake.
D)   rescind the contract on the basis of undue influence.E) C) and D)
F) B) and D)

Question 12

Moe threatens physical harm to force Nora to contract to pay him for protecting her restaurant, Pasta Plates, from vandalism. Nora may

Accepted Answer

A)   rescind the contract or refuse to comply with its terms.
B)   do nothing once she has agreed to pay.
C)   recover from her insurer for the cost.
D)   recover from the local police for their failure to protect her store.E) A) and B)
F) B) and C)

Exam 13: Voluntary Consent

Dix agrees to sell Eli, for $1,500, a remote parcel of land. Soon after, the land becomes much more valuable due to the construction of a new highway nearby. A court would

Correct Answer
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Correct Answer
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Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Correct Answer
verified

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

Correct Answer
verified

Moe threatens physical harm to force Nora to contract to pay him for protecting her restaurant, Pasta Plates, from vandalism. Nora may

Correct Answer
verified

A material fact is a fact that is important and central to the subject matter of a contract.

Correct Answer
verified

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of

Correct Answer
verified

Gary owns two all-terrain vehicles (ATVs) , worth $1,000 and $500, respec-tively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

Correct Answer
verified

S cienter clearly exists if a party knows a fact is not as stated.

Correct Answer
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Correct Answer
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When both parties to a contract are mistaken about the same material fact, a unilateral mistake has occurred.

Correct Answer
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Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

Correct Answer
verified

Exam 13: Voluntary Consent

Dix agrees to sell Eli, for $1,500, a remote parcel of land. Soon after, the land becomes much more valuable due to the construction of a new highway nearby. A court would

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Correct AnswerverifiedShow Answer

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

Correct AnswerverifiedShow Answer

Moe threatens physical harm to force Nora to contract to pay him for protecting her restaurant, Pasta Plates, from vandalism. Nora may

Correct AnswerverifiedShow Answer

A material fact is a fact that is important and central to the subject matter of a contract.

Correct AnswerverifiedShow Answer

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of

Correct AnswerverifiedShow Answer

Gary owns two all-terrain vehicles (ATVs) , worth $1,000 and $500, respec-tively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation

Correct AnswerverifiedShow Answer

S cienter clearly exists if a party knows a fact is not as stated.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When both parties to a contract are mistaken about the same material fact, a unilateral mistake has occurred.

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Misrepresentation of law does not ordinarily entitle a party to avoid a contract.

Correct AnswerverifiedShow Answer

Correct Answer
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