Exam 9: Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The parking enforcement officer gave Jim a parking ticket.But as it turns out,the NO PARKING sign had been placed in error on private property.Can Jim recover damages in a tort action?

Both rescission and damages are available remedies for misrepresentation only when the misrepresentation is

Use this fact situation to answer the related questions that follow it. A and B are negotiating a settlement under which A is to give B money and in return B is to give A his house and his car.The negotiations are by faxes back and forth between A and B,who agree to put the settlement in writing.A prepares the written settlement agreement,which,unfortunately,does not refer to his house,so B quickly signs it. In this situation,if A argues that the house was part of the settlement and was left out by mistake,

Guido is an unsavory money lender who charges 35 percent interest.Upon learning that Sylvia,one of his clients,had become unable to make her weekly payment,Guido tells her that he has "a way of dealing with defaulters where they think twice next time." She then promptly signs a contract agreeing to a 50 percent rate over a longer period of time.Sylvia now wants to get out of this second contract.As a lawyer,what should you advise Sylvia to do?

You innocently have made some misstatements that others are relying on.Legally speaking,you can change your situation from innocent misrepresentation into one of fraudulent or negligent misrepresentation by

Linda's lawyer took a city lot she owned in payment for services rendered.Now Linda is claiming undue influence and suing to get the land back.What must she prove and what must the lawyer try to prove?

Use the fact situation in Q28 to answer the related question that follows. Change the fact situation by assuming that Edward's conduct towards his father is designed to make his father enter into a contract with a third party.Also assume that Mary and George convince John that what Edward has been telling him about how they feel about him was a lie.In this situation,the contract is

Use the fact situation in Q30 to answer the related question that follows. Using the fact situation above,assume that shortly after signing the guarantee,Mary leaves John so that he can no longer abuse her and decides that she really should not have to guarantee John's loan.If Mary acts quickly by bringing a lawsuit against the bank,Mary may succeed because

Use the fact situation in Q10 to answer the related question that follows. Based on the above fact situation,the court will

Explain the concept of non est factum and how this concept has evolved over the years.

Scott,an independent businessman,is asking his wife to pledge her inherited family homestead towards a business loan he has arranged at the bank.She seems perfectly willing to do this.Yet,to avoid a possible later legal claim of undue influence by Scott's wife,which would be wisest for the bank to do?

Where a contract deals with the sale of goods,such as a car,at common law,the duty of the purchaser is to inspect the goods before she or he purchases them.

A agrees to buy 1000 shares in a telephone company from B for $3.00 a share.A believes that the value of the shares in the company is going to go up to $15.00 in a day or two.However,B believes that the value of the shares is going to go down to $1.50 and wants to get as much money as he can.Unknown to either A or B,at the time of the agreement,the value of the company and thus the shares has dropped below $1.50,to $0.75.A now wishes to get out of the agreement.In this case,

Explain the meaning of rescission.

Misrepresentation can affect the contract only if the misrepresentation is

A pleas of non est factum

A court will not enforce a contract if

If a party to an existing contract discovers he or she had made an incorrect statement during the contract negotiations,then he or she should

What remedies are available to the innocent parties if they are the victims of an innocent misrepresentation? What is the remedy if they are the victims of a fraudulent misrepresentation?

At times,the concepts of undue influence and duress may overlap.Explain.