Question 1

The primary purpose of the Statute of Frauds is to punish people who perpetrate frauds by using written contracts.

Accepted Answer

A) True 
 B)False  False

Question 2

Contracts involving fraud in the inception are voidable.

Accepted Answer

A) True 
 B)False  False

Question 3

Sam wants to sell his stereo system because one side of his amplifier occasionally doesn't work properly and the cost of repair is so high that Sam wants to get a new stereo.Otherwise,it works well,and the sound quality is very good.Sam places an advertisement in the newspaper and Bob comes to look at it.Bob tries it out and likes what he hears.Then the following takes place:
Bob:	How does it work?
Sam:	Listen for yourself.Isn't that sound great?
Bob:	Yes it is.Have you ever had to have it repaired?
Sam:	It's never been repaired; it's just as it came from the factory.Try the CD,the cassette tape and the tuner.You'll see they all work.
Bob:	Playing this cassette tape,all of a sudden it doesn't sound right.I know a lot about stereos and that just doesn't sound the way it should.
Sam:	Try the CD and I'll get another tape.
Bob plays the CD,then tries a different cassette,and then Sam is relieved that the problem does not recur.Bob spends an hour or so playing and testing the stereo system,and then they reach a deal.Bob discovers the problem after he gets home.What remedies does he have?

Accepted Answer

The fraud elements are present,although Bob's statement about knowing a lot about stereos and his inspection of the stereo may negate the reliance element.Bob could rescind or collect damages.

Question 4

What is the significance of requiring that a misrepresentation relate to a "material fact" in connection with a fraud in the inducement case?

Accepted Answer

A)  The misstatement must relate to the substance that the item is made of. 
B)  The misstatement must have been a significant factor in the plaintiff's decision to enter into the contract, and cannot relate to an opinion or prediction. 
C)  The misstatement must have been a correct statement at some point in the past. 
D)  The misstatement can relate to any fact before or after the contract was formed. 
E)  The misstatement must not involve an issue of law. 
A)  The misstatement must relate to the substance that the item is made of. 
B)  The misstatement must have been a significant factor in the plaintiff's decision to enter into the contract, and cannot relate to an opinion or prediction. 
C)  The misstatement must have been a correct statement at some point in the past. 
D)  The misstatement can relate to any fact before or after the contract was formed. 
E)  The misstatement must not involve an issue of law.

Question 5

Many state Statutes of Frauds require that agents' contracts to sell real property covered by the Statute of Frauds be in writing to be enforceable.The requirements is often referred to as the ________ rule

Accepted Answer

A)  perfect parity 
B)  equal parity 
C)  due diligence 
D)  equal dignity 
E)  perfect dignity 
A)  perfect parity 
B)  equal parity 
C)  due diligence 
D)  equal dignity 
E)  perfect dignity

Question 6

Bob,who has never liked Bill because years ago Bill stole his girlfriend,would like to cause Bill some problems.Bob owns a piece of land that he knows Bill would like to have.Bob sees will at the local country club and tells him that he will sell the land for $100,000.Bill agrees but is a little short on funds.He sells some antique cars he has in order to come up with the cash.When Bill shows up to transfer title,Bob says he was only joking and that he won't sell.Bob says that Bill cannot enforce the deal because it was not in writing.If Will sues,who should win?

Accepted Answer

Although the Statute of Frauds would app

Question 7

Nondisclosure is a misrepresentation if it would constitute a failure to act in ________.

Accepted Answer

A)  abeyance 
B)  a reasonable period of time 
C)  good faith 
D)  mitigation 
E)  equity 
A)  abeyance 
B)  a reasonable period of time 
C)  good faith 
D)  mitigation 
E)  equity

Question 8

Mike hires Stephen to paint his house.The contract stipulates that Mike will provide the paint and equipment and that Stephen will provide the labor for which he will be paid $1,000.This contract must be in writing according to the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 9

The purpose of an integration clause in a contract is to exclude application of the parol evidence rule to that particular contract.

Accepted Answer

A) True 
 B)False

Question 10

A misrepresentation of law is allowed as grounds for rescission of a contract if one party to the contract is a professional who should know what the law is and intentionally misrepresents the law to a less-sophisticated contracting party.

Accepted Answer

A) True 
 B)False

Question 11

What is the purpose of the parol evidence rule? Should parties to a contract always be able to tell their story and then leave it to the jury to determine who is telling the truth? Does the parol evidence rule deny a party's right to be heard in court? Why are oral statements made after the contract is formed not subject to the rule?

Accepted Answer

The primary purpose is to prevent partie

Question 12

Consistent with judicial standards of interpretation,where a preprinted form contract is used,handwritten words prevail over both preprinted and typed words.

Accepted Answer

A) True 
 B)False

Question 13

A party may not rescind a contract if there has been a mutual mistake of a past or existing material fact.

Accepted Answer

A) True 
 B)False

Question 14

The doctrine that would allow a party to rescind a contract because the other party abused a fiduciary relationship in forming the contract is:

Accepted Answer

A)  duress. 
B)  fraud in the inducement. 
C)  undue influence. 
D)  the parol evidence rule. 
E)  fraud in the inception. 
A)  duress. 
B)  fraud in the inducement. 
C)  undue influence. 
D)  the parol evidence rule. 
E)  fraud in the inception.

Question 15

Which of the following is true?

Accepted Answer

A)  Courts allow rescission of a contract if there is a mutual mistake of value as opposed to a mutual mistake of fact. 
B)  Courts allow rescission of a contract if there is a mutual mistake of fact as opposed to a mutual mistake of value. 
C)  Courts allow rescission of a contract for either a mutual mistake of fact or a mutual mistake of value. 
D)  Courts do not allow rescission of a contract for either a mutual mistake of fact or a mutual mistake of value. 
E)  Courts never allow rescission of a contract unless fraud is shown. 
A)  Courts allow rescission of a contract if there is a mutual mistake of value as opposed to a mutual mistake of fact. 
B)  Courts allow rescission of a contract if there is a mutual mistake of fact as opposed to a mutual mistake of value. 
C)  Courts allow rescission of a contract for either a mutual mistake of fact or a mutual mistake of value. 
D)  Courts do not allow rescission of a contract for either a mutual mistake of fact or a mutual mistake of value. 
E)  Courts never allow rescission of a contract unless fraud is shown.

Question 16

Which of the following is a correct statement regarding the applicability of the Statute of Frauds to easements?

Accepted Answer

A)  The Statute of Frauds does not apply to easements. 
B)  Express easements must be in writing to be enforceable, while implied easements need not be written. 
C)  Implied easements must be in writing to be enforceable, while express easements need not be in writing. 
D)  Both express and implied easements must be in writing to be enforceable. 
E)  Although the Statute of Frauds does generally apply to easements, neither express nor implied easements must be in writing to be enforceable. 
A)  The Statute of Frauds does not apply to easements. 
B)  Express easements must be in writing to be enforceable, while implied easements need not be written. 
C)  Implied easements must be in writing to be enforceable, while express easements need not be in writing. 
D)  Both express and implied easements must be in writing to be enforceable. 
E)  Although the Statute of Frauds does generally apply to easements, neither express nor implied easements must be in writing to be enforceable.

Question 17

What is the significance of requiring that a plaintiff's reliance in a fraud in the inducement case be justifiable?

Accepted Answer

A)  The reliance must have caused damage to the plaintiff. 
B)  The plaintiff must be able to prove the reliance in a court of law. 
C)  The misstatement relied upon by the plaintiff must have been the only factor in the plaintiff's decision to enter into the contract. 
D)  The plaintiff must be able to prove why the defendant made the false statement. 
E)  The plaintiff can recover only if the belief of the false statement was reasonable. 
A)  The reliance must have caused damage to the plaintiff. 
B)  The plaintiff must be able to prove the reliance in a court of law. 
C)  The misstatement relied upon by the plaintiff must have been the only factor in the plaintiff's decision to enter into the contract. 
D)  The plaintiff must be able to prove why the defendant made the false statement. 
E)  The plaintiff can recover only if the belief of the false statement was reasonable.

Question 18

The doctrine of promissory estoppel is also known as equitable estoppel.

Accepted Answer

A) True 
 B)False

Question 19

Usually,a misrepresentation of law is not actionable as fraud.

Accepted Answer

A) True 
 B)False

Question 20

Jack and Jill were discussing business over lunch when they agreed on the sale of some goods.Because neither of them had any paper with them,Jack wrote the following on a napkin: "Jill agrees to purchase from Jack,1,000 widgets to be delivered on July 1,2001,at a cost of $10,000,payable on delivery." Jill signed the napkin,although Jack did not sign it.Jack delivered the widgets per the contract,but Jill refuses to pay for them.If Jack sues Jill for the price of the goods,the most likely result is:

Accepted Answer

A)  Jill will win, because this writing is not sufficient under the Statute of Frauds. 
B)  Jack will win, because the writing is sufficient under the Statute of Frauds. 
C)  Jill will win, because Jack did not sign the contract. 
D)  Jack will win, because the Statute of Frauds does not apply to this situation. 
E)  Jill will win, because there was no reasonable basis for her to believe there as an enforceable contract. 
A)  Jill will win, because this writing is not sufficient under the Statute of Frauds. 
B)  Jack will win, because the writing is sufficient under the Statute of Frauds. 
C)  Jill will win, because Jack did not sign the contract. 
D)  Jack will win, because the Statute of Frauds does not apply to this situation. 
E)  Jill will win, because there was no reasonable basis for her to believe there as an enforceable contract.

Exam 12: Genuineness of Assent and Statute of Frauds

The primary purpose of the Statute of Frauds is to punish people who perpetrate frauds by using written contracts.

Contracts involving fraud in the inception are voidable.

What is the significance of requiring that a misrepresentation relate to a "material fact" in connection with a fraud in the inducement case?

Many state Statutes of Frauds require that agents' contracts to sell real property covered by the Statute of Frauds be in writing to be enforceable.The requirements is often referred to as the ________ rule

Nondisclosure is a misrepresentation if it would constitute a failure to act in ________.

Mike hires Stephen to paint his house.The contract stipulates that Mike will provide the paint and equipment and that Stephen will provide the labor for which he will be paid $1,000.This contract must be in writing according to the Statute of Frauds.

The purpose of an integration clause in a contract is to exclude application of the parol evidence rule to that particular contract.

A misrepresentation of law is allowed as grounds for rescission of a contract if one party to the contract is a professional who should know what the law is and intentionally misrepresents the law to a less-sophisticated contracting party.

Consistent with judicial standards of interpretation,where a preprinted form contract is used,handwritten words prevail over both preprinted and typed words.

A party may not rescind a contract if there has been a mutual mistake of a past or existing material fact.

The doctrine that would allow a party to rescind a contract because the other party abused a fiduciary relationship in forming the contract is:

Which of the following is true?

Which of the following is a correct statement regarding the applicability of the Statute of Frauds to easements?

What is the significance of requiring that a plaintiff's reliance in a fraud in the inducement case be justifiable?

The doctrine of promissory estoppel is also known as equitable estoppel.

Usually,a misrepresentation of law is not actionable as fraud.

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