BUL 5810 Chapter 11 T-F and Extra
Questions
Marjorie has been cared for by her family physician for 35 years.
She decides to assume the mortgage on his new clinic. The contract is automatically
invalid because of undue influence.
True/False - answer False
Lorna is given papers to sign by a catering company for the food,
service, and decorations at a wedding. Underneath the invoices are a
carbon and a contract of sale for a portion of the failing catering
business. As Lorna signs the papers, her signature is applied to the
sales contract. This is a void contract because it was entered by fraud
in the execution.
True/False - answer True
Pat told her friends that her car got 35 miles to the gallon in the
city when in reality it only got 20 miles per gallon. When Pat decides
to sell the car and one of her friends decides to buy it, Pat is under
no duty to tell the correct figure unless asked.
True/False - answerFalse
If an agreement is not voluntary and knowing, it will be either void
or voidable.
True/False - answerTrue
Physical compulsion and improper threats are the two basic types of
duress.
True/False - answerTrue
The difference between fraud and misrepresentation is that fraud
involves malice while nonfraudulent misrepresentation is always
innocent.
True/False - answerFalse
Rescission is usually permitted where the parties to a contract are
, both mistaken about a material fact.
True/False - answerTrue
Generally, whether or not the parties deal at arm's length does not
affect whether silence alone amounts to fraud.
True/False - answerFalse
Social coercion to enter into a contract cannot be a basis for
avoidance of the contract.
True/False - answerFalse
Undue influence is the taking of unfair advantage of a person by
reason of a dominant position based upon a confidential relationship.
True/False - answerTrue
Fraud in the inducement will render an agreement void.
True/False - answerFalse
For a misrepresentation to be actionable as fraud in the inducement, it must be a
misrepresentation of an opinion.
True/False - answerFalse
Brysen sells bikes at a local discount store. To encourage Cole to buy a more
expensive model than he originally contemplated, Brysen
tells Cole, "This is the most awesome bike you can buy at this price.
You can expect lots of riding pleasure." Based on this statement Cole
buys the bike. A week later, before his bike is fully paid for, Cole sees a far superior bike
for a lower price at another store. Cole can avoid his contract with Brysen because of
fraudulent misrepresentation.
True/False - answerFalse
If a seller occupies a fiduciary relationship with the buyer and
fails to make full disclosure to the buyer, then the latter will be
able to avoid the transaction.
True/False - answerTrue
A unilateral mistake of fact is typically grounds for avoiding a contract.
Questions
Marjorie has been cared for by her family physician for 35 years.
She decides to assume the mortgage on his new clinic. The contract is automatically
invalid because of undue influence.
True/False - answer False
Lorna is given papers to sign by a catering company for the food,
service, and decorations at a wedding. Underneath the invoices are a
carbon and a contract of sale for a portion of the failing catering
business. As Lorna signs the papers, her signature is applied to the
sales contract. This is a void contract because it was entered by fraud
in the execution.
True/False - answer True
Pat told her friends that her car got 35 miles to the gallon in the
city when in reality it only got 20 miles per gallon. When Pat decides
to sell the car and one of her friends decides to buy it, Pat is under
no duty to tell the correct figure unless asked.
True/False - answerFalse
If an agreement is not voluntary and knowing, it will be either void
or voidable.
True/False - answerTrue
Physical compulsion and improper threats are the two basic types of
duress.
True/False - answerTrue
The difference between fraud and misrepresentation is that fraud
involves malice while nonfraudulent misrepresentation is always
innocent.
True/False - answerFalse
Rescission is usually permitted where the parties to a contract are
, both mistaken about a material fact.
True/False - answerTrue
Generally, whether or not the parties deal at arm's length does not
affect whether silence alone amounts to fraud.
True/False - answerFalse
Social coercion to enter into a contract cannot be a basis for
avoidance of the contract.
True/False - answerFalse
Undue influence is the taking of unfair advantage of a person by
reason of a dominant position based upon a confidential relationship.
True/False - answerTrue
Fraud in the inducement will render an agreement void.
True/False - answerFalse
For a misrepresentation to be actionable as fraud in the inducement, it must be a
misrepresentation of an opinion.
True/False - answerFalse
Brysen sells bikes at a local discount store. To encourage Cole to buy a more
expensive model than he originally contemplated, Brysen
tells Cole, "This is the most awesome bike you can buy at this price.
You can expect lots of riding pleasure." Based on this statement Cole
buys the bike. A week later, before his bike is fully paid for, Cole sees a far superior bike
for a lower price at another store. Cole can avoid his contract with Brysen because of
fraudulent misrepresentation.
True/False - answerFalse
If a seller occupies a fiduciary relationship with the buyer and
fails to make full disclosure to the buyer, then the latter will be
able to avoid the transaction.
True/False - answerTrue
A unilateral mistake of fact is typically grounds for avoiding a contract.
