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If the misrepresentation is fraudulent, the victim can avoid the contract, no matter the significance of the misrepresentation.

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If a statement of fact is made false by later events, it must be disclosed as false.

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With reference to assertions of intention, which of the following is NOT true?


A) Usually, assertions of intention are not considered facts.
B) The right to misstate intentions is useful chiefly in the acquisition of business.
C) To be a misrepresentation that will permit rescission, an assertion of intention must be false at the time made.
D) To render a contract voidable, the false assertion of intention must be harmful in some way to other interests of the recipient.
E) The law allows considerable leeway in the honesty of assertions of intention.

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An infant will lose the power to avoid a contract if the rights of third parties intervene.

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True

A contract made by a person under guardianship is voidable.

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In duress by threat, _____.


A) the threat must be proper
B) there must be a reasonable alternative
C) the test for inducement is objective
D) the contract is rendered voidable
E) the test for inducement is based on what a more reasonable person might have feared

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A contract induced by improper threats or undue influence is void.

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An) _____ is one that would be likely to induce a reasonable person to manifest his assent.


A) innocent misrepresentation
B) rescission
C) duress
D) misstatement of fact
E) material misrepresentation

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A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

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If the tort suit is an indirect method for enforcing a contract, infants are liable for their torts.

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False

Which of the following is true about undue influence?


A) It is a harsher form of duress.
B) The unfairness does not lie in any misrepresentation.
C) Usually the fact pattern involves the victim receiving advice from most people except the persuader.
D) A contract made under undue influence stands void.
E) The perpetrator threatens the victim to assent to the contract.

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Identify the correct statement in proving fraudulent misrepresentation.


A) Concealment is a more passive type of nondisclosure.
B) Nondisclosure of a fact operates as a misrepresentation under all circumstances.
C) The act of concealment should be direct.
D) Concealment may consist of diverting the other party from gaining the necessary knowledge.
E) Sales puffery is considered a fact.

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D

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

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Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

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In proving fraud, which of the following is true in case of reliance by the victim?


A) The reliance need not be solely on the false assertion.
B) The defendant can win a case by demonstrating that the plaintiff would have assented to the contract even without misrepresentation.
C) If the victim fails to read documents which give him the true facts, he can complain that he relied on contrary statements.
D) The rule of reliance applies to statements about the occurrence of events in the past, present, and future.
E) If the statement is one that concerns matters peculiarly within the person's purview, he would be held to have justifiably relied on the other party's false assertion.

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Which of the following is true of fraudulent misrepresentation?


A) A fraudulent misrepresentation is a crime.
B) Fraudulent misrepresentation is a misstatement of facts that is unintentionally made and justifiably relied upon.
C) If a statement of fact is made false by later events, it must be disclosed as false.
D) A half-truth cannot amount to misrepresentation.
E) A typist's unnoticed error in a letter cannot amount to misrepresentation.

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In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?


A) There was a mistake on part of Young who did not have the authority to order the equipment.
B) The contract was made intentionally misrepresenting the facts.
C) The mistake was mutual, relating to the failure of communication.
D) There was a misstatement of fact by Konic.
E) There was a fraudulent misrepresentation.

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A fraudulent misrepresentation is a criminal wrong.

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Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?


A) The contract did not develop Vokes' dancing abilities.
B) The contract did not develop Vokes' dance aptitude.
C) The contract led to Vokes having difficulty in hearing the musical beat.
D) There was an assertion of intentions.
E) The contract was a misrepresentation of assertion of opinion.

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What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

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An agreement is enforceable if the parti...

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