Question 1

Guaranty contracts are not required to be in writing under the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following best describes duress?

Accepted Answer

A)  a situation where a trust relationship has been violated in forming a contract 
B)  a situation where a party has improperly given the other party no alternative but to enter into a contract 
C)  a situation where one party has lied to the other to lead them to enter into a contract 
D)  a situation where, after the contract was negotiated, circumstances have changed so that one of the parties is in a desperate circumstance and cannot reasonably perform 
E)  a situation in which fraud has been committed by a third party to the contract 
A)  a situation where a trust relationship has been violated in forming a contract 
B)  a situation where a party has improperly given the other party no alternative but to enter into a contract 
C)  a situation where one party has lied to the other to lead them to enter into a contract 
D)  a situation where, after the contract was negotiated, circumstances have changed so that one of the parties is in a desperate circumstance and cannot reasonably perform 
E)  a situation in which fraud has been committed by a third party to the contract

Question 3

The Statute of Frauds does not allow the integration of documents.

Accepted Answer

A) True 
 B)False

Question 4

Scienter is a necessary element that must be proven for both innocent and fraudulent misrepresentation.

Accepted Answer

A) True 
 B)False

Question 5

Where two parties contract for the purchase and sale of an ordinary item,such as a desk,that unknown to both parties is a rare and valuable example of that item,this is a:

Accepted Answer

A)  unilateral mistake. 
B)  mutual mistake of law. 
C)  mistake of value, but not a mistake of fact. 
D)  case of fraud by concealment. 
E)  case of implied-in-fact mistake. 
A)  unilateral mistake. 
B)  mutual mistake of law. 
C)  mistake of value, but not a mistake of fact. 
D)  case of fraud by concealment. 
E)  case of implied-in-fact mistake.

Question 6

Most,but not all,states have enacted a statute of frauds.

Accepted Answer

A) True 
 B)False

Question 7

In order to be enforceable,any lease involving real property must be in writing.

Accepted Answer

A) True 
 B)False

Question 8

If there has been a mutual mistake,the contract may be rescinded on the grounds that no contract has been formed because there has been no "meeting of the minds" between the parties.

Accepted Answer

A) True 
 B)False

Question 9

You go to the Cosmic Runner's Supply Store in Asheville.The salesperson shows you some shoes and says,"In a race,these shoes pick up the cosmic energy from the runners around you and channel it into your own legs.This causes anyone wearing these shoes to run twice as fast as in normal shoes and makes those around you run more slowly." In your next race,you do only slightly better than usual,and those around you seem to run as fast as usual.If you sue on the basis of fraud in the inducement:

Accepted Answer

A)  you would lose, because the statement did not contain a factual assertion. 
B)  you would lose, because your reliance was not justifiable. 
C)  you would win if most runners do not go twice as fast in the cosmic shoes. 
D)  proving only the salesperson's intent to deceive is enough to win your fraud case. 
E)  you would win, but only if you could establish that the shoes cost over the legal minimum amount of $50 necessary to bring a breach of contract action. 
A)  you would lose, because the statement did not contain a factual assertion. 
B)  you would lose, because your reliance was not justifiable. 
C)  you would win if most runners do not go twice as fast in the cosmic shoes. 
D)  proving only the salesperson's intent to deceive is enough to win your fraud case. 
E)  you would win, but only if you could establish that the shoes cost over the legal minimum amount of $50 necessary to bring a breach of contract action.

Question 10

Parol evidence may not be admitted in court if it corrects an obvious clerical or typographical error.

Accepted Answer

A) True 
 B)False

Question 11

Scienter means "innocent mind."

Accepted Answer

A) True 
 B)False

Question 12

One situation in which a contract may not be enforced due to a unilateral mistake is when a party makes a unilateral mistake of fact and the other party either knew or should have known that a mistake was made.

Accepted Answer

A) True 
 B)False

Question 13

In general,when one party who is not a professional makes a misrepresentation about the law to the other party to a contract,the deceived party can avoid the contract on the basis of the misrepresentation.

Accepted Answer

A) True 
 B)False

Question 14

If an innocent misrepresentation is made,the aggrieved party may rescind the contract but may not sue for damages.

Accepted Answer

A) True 
 B)False

Question 15

In order to be enforceable,contracts to pay compensation for services rendered in negotiating the purchase of a business must be in writing.

Accepted Answer

A) True 
 B)False

Question 16

Under the Statute of Frauds,any contract that transfers an ownership interest in ________ property must be in writing to be enforceable.

Accepted Answer

A)  personal 
B)  tangible 
C)  intangible 
D)  real 
E)  intellectual 
A)  personal 
B)  tangible 
C)  intangible 
D)  real 
E)  intellectual

Question 17

For Statute of Frauds purposes,an interest in land includes (but is not limited to):

Accepted Answer

A)  fixtures. 
B)  mortgages. 
C)  insurance contracts on interests in land. 
D)  fixtures and mortgages 
E)  fixtures, mortgages, and insurance contracts on interests in land. 
A)  fixtures. 
B)  mortgages. 
C)  insurance contracts on interests in land. 
D)  fixtures and mortgages 
E)  fixtures, mortgages, and insurance contracts on interests in land.

Question 18

A unilateral mistake can be so serious that it results in an unconscionable contract.

Accepted Answer

A) True 
 B)False

Question 19

Mary is a nerdy bookworm couch potato who rarely goes out of her home except to go to work as a deskbound lawyer.She wears a sweater almost every day including during the summer,and is always complaining about being cold.Edmund,her wealthy boss tells Mary that he will give her $1M if she climbs Mt.Everest.Edmund doesn't believe that she'd even give the offer a second thought.Mary,without saying anything to anyone,starts an intensive training program to whip herself into shape and six months later,during her vacation,in fact,climbs Mt.Everest.Upon returning to work,she presents Edmund a picture of herself on the summit of Mt.Everest and demands her $1M.Edmund tells her that they never had a contract so he owes her nothing and Mary claims that the money is owed based on promissory estoppel.

Accepted Answer

There is obviously no true mutual assent

Question 20

Contracts entered into as a result of fraudulent inducement are:

Accepted Answer

A)  void. 
B)  enforceable in equity but not by law. 
C)  voidable by the party who made the fraudulent inducement. 
D)  voidable by the innocent party. 
E)  voidable by either the party who made the fraudulent inducement or the innocent party. 
A)  void. 
B)  enforceable in equity but not by law. 
C)  voidable by the party who made the fraudulent inducement. 
D)  voidable by the innocent party. 
E)  voidable by either the party who made the fraudulent inducement or the innocent party.

Exam 12: Genuineness of Assent and Statute of Frauds

Guaranty contracts are not required to be in writing under the Statute of Frauds.

Which of the following best describes duress?

The Statute of Frauds does not allow the integration of documents.

Scienter is a necessary element that must be proven for both innocent and fraudulent misrepresentation.

Where two parties contract for the purchase and sale of an ordinary item,such as a desk,that unknown to both parties is a rare and valuable example of that item,this is a:

Most,but not all,states have enacted a statute of frauds.

In order to be enforceable,any lease involving real property must be in writing.

If there has been a mutual mistake,the contract may be rescinded on the grounds that no contract has been formed because there has been no "meeting of the minds" between the parties.

Parol evidence may not be admitted in court if it corrects an obvious clerical or typographical error.

Scienter means "innocent mind."

One situation in which a contract may not be enforced due to a unilateral mistake is when a party makes a unilateral mistake of fact and the other party either knew or should have known that a mistake was made.

In general,when one party who is not a professional makes a misrepresentation about the law to the other party to a contract,the deceived party can avoid the contract on the basis of the misrepresentation.

If an innocent misrepresentation is made,the aggrieved party may rescind the contract but may not sue for damages.

In order to be enforceable,contracts to pay compensation for services rendered in negotiating the purchase of a business must be in writing.

Under the Statute of Frauds,any contract that transfers an ownership interest in ________ property must be in writing to be enforceable.

For Statute of Frauds purposes,an interest in land includes (but is not limited to):

A unilateral mistake can be so serious that it results in an unconscionable contract.

Contracts entered into as a result of fraudulent inducement are:

Legal Heritage and the Information Age

Constitutional Law for Business and E-Commerce

Courts and Jurisdiction

Judicial, Alternative, Administrative, and E-Dispute Resolution

Torts and Strict Liability

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales, Lease, and E-Contracts

Performance of Sales, Leases and E-Contracts

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System, E-Money, and Financial Reform

Credit and Secured Transactions

Bankruptcy and Reorganization

Agency Law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Company and Limited Liability Partnership

Franchise and Special Forms of Business

Investor Protection,E-Securities Transactions,and Wall Street Reform

Antitrust Law

Consumer Safety, Consumer Financial Protection, and Environmental Protection

Labor, Worker Protection, Employment, and Immigration Law

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Liability

International and World Trade Law

Filters