Question 1

If there is a confidential relationship between two people, any contract made by the servient party that benefits the dominant party is presumed to be entered into under undue influence.

Accepted Answer

A) True 
 B)False

Question 2

The measure of damages awarded to the innocent party for fraud is the difference between the value of the property as represented and the actual value of the property.

Accepted Answer

A) True 
 B)False

Question 3

________ occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Accepted Answer

A)   Fraud in the inducement
B)   Fraud in the inception
C)   Fraud by concealment
D)   Fraud by suppression

Question 4

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Accepted Answer

A) True 
 B)False

Question 5

Mistakes in clerical or mathematical errors that are not the result of gross negligence are considered unilateral mistakes.

Accepted Answer

A) True 
 B)False

Question 6

________ is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Accepted Answer

A)   Scienter
B)   Duress
C)   Battery
D)   Assault

Question 7

________ is a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract.

Accepted Answer

A)   Duress
B)   Undue influence
C)   Fraud
D)   Scienter

Question 8

While signing a contract, one of the parties misinterpreted a legal clause. Neither of the parties is a legal professional. Which of the following statements holds well in this scenario?

Accepted Answer

A)   The party who misinterpreted the law is actionable for fraud.
B)   The party who misinterpreted the law may rescind the contract.
C)   The party who misinterpreted the law is not actionable for fraud.
D)   The contract is declared unenforceable as the law has been misinterpreted.

Question 9

When a mutual mistake of value occurs, the contract remains enforceable by either party.

Accepted Answer

A) True 
 B)False

Question 10

A misrepresentation of a material fact is actionable as fraud only if it occurs by words.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of a unilateral mistake?

Accepted Answer

A)   Only one mistake or ambiguity is present in the subject matter of the entire contract.
B)   Out of several contracts drafted simultaneously between two parties, one has a mistake in its subject matter that does not concern the other contracts.
C)   Only one party is mistaken about a material fact regarding the subject matter of a contract.
D)   A single mistake about a material fact in the subject matter of a contract appears several times in the contract.

Question 12

If a seller does not disclose legal disputes involving the property being sold, he or she is liable for silence as misrepresentation.

Accepted Answer

A) True 
 B)False

Question 13

A material fact is a fact that is irrelevant to the subject matter of a contract but pertains to the conduct of the parties.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following occurs when one party intentionally hides a material fact from another party?

Accepted Answer

A)   fraud in the inducement
B)   fraud in concealment
C)   silence as misrepresentation
D)   misrepresentation of law

Question 15

Which of the following constitutes duress?

Accepted Answer

A)   an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation
B)   a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract
C)   a threat to commit extortion unless someone enters into a contract
D)   the knowledge that a representation is false or that it was made without sufficient knowledge of the truth

Question 16

Which of the following is true of undue influence in entering contracts?

Accepted Answer

A)   Undue influence need not require the overcoming of the innocent party's free will.
B)   Undue influence is not grounds for prosecution, as the innocent party has complete freedom to evaluate the terms of the contract.
C)   A contract that is entered into because of undue influence is not voidable.
D)   A fiduciary or confidential relationship must have existed between the parties for undue influence to be proven.

Question 17

What should be shown to prove fraud?

Accepted Answer

To prove fraud, the following elements m...

Question 18

Intentional misrepresentation is considered fraud.

Accepted Answer

A) True 
 B)False

Question 19

Predictions about the future generally do not form the basis for fraud.

Accepted Answer

A) True 
 B)False

Question 20

Unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.

Accepted Answer

A) True 
 B)False

Exam 13: Genuineness of Assent and Undue Influence

________ is a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract.

Correct AnswerverifiedShow Answer

Intentional misrepresentation is considered fraud.

Correct AnswerverifiedShow Answer

While signing a contract, one of the parties misinterpreted a legal clause. Neither of the parties is a legal professional. Which of the following statements holds well in this scenario?

Correct AnswerverifiedShow Answer

Unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.

Correct AnswerverifiedShow Answer

Mistakes in clerical or mathematical errors that are not the result of gross negligence are considered unilateral mistakes.

Correct AnswerverifiedShow Answer

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Correct AnswerverifiedShow Answer

Predictions about the future generally do not form the basis for fraud.

Correct AnswerverifiedShow Answer

A material fact is a fact that is irrelevant to the subject matter of a contract but pertains to the conduct of the parties.

Correct AnswerverifiedShow Answer

When a mutual mistake of value occurs, the contract remains enforceable by either party.

Correct AnswerverifiedShow Answer

The measure of damages awarded to the innocent party for fraud is the difference between the value of the property as represented and the actual value of the property.

Correct AnswerverifiedShow Answer

If a seller does not disclose legal disputes involving the property being sold, he or she is liable for silence as misrepresentation.

Correct AnswerverifiedShow Answer

Which of the following is true of a unilateral mistake?

Correct AnswerverifiedShow Answer

Which of the following constitutes duress?

Correct AnswerverifiedShow Answer

If there is a confidential relationship between two people, any contract made by the servient party that benefits the dominant party is presumed to be entered into under undue influence.

Correct AnswerverifiedShow Answer

A misrepresentation of a material fact is actionable as fraud only if it occurs by words.

Correct AnswerverifiedShow Answer

Which of the following is true of undue influence in entering contracts?

Correct AnswerverifiedShow Answer

What should be shown to prove fraud?

Correct AnswerverifiedTo prove fraud, the following elements m...View AnswerShow Answer

________ is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Correct AnswerverifiedShow Answer

Which of the following occurs when one party intentionally hides a material fact from another party?

Correct AnswerverifiedShow Answer

________ occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct AnswerverifiedShow 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
To prove fraud, the following elements m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified